China owns more than $1 trillion of our debt. So, what are
they doing with all of the interest they are earning? They’re now buying houses… foreclosed U.S. houses.
COMMENTS:
Just imagine this money-go-round: (1) The Chinese buy up all
of our houses, (2) We have to pay the Chinese to rent those houses, (3) The
Chinese take the rental income and lend more money to the U.S. government, and
(4) The government raises our taxes so they can pay more interest to the
Chinese. Wanna have a little won-ton soup? Is it time we threw these occupants of power in our government out, or not?
TODAY’S QUERIES & ANSWERS:
Q. Will all of that money tied up in corporate lockers
finally start to be invested in our economy?
(Tiffany ~ Chester, CA)
A. There is some scholarly thinking that there will be a lot
of declarations of stockholder dividends before the end of the year when higher
taxes on incomes over $250,000 are inevitable.
That would lower the cash on hand in major corporations and would
probably drive the stock market up, at least in the short run. Then, everyone would sit tight until a final
resolution is reached on the economy and the “Fiscal Cliff,” sometime late next
year at the earliest. Depending on the
structure of such an agreement, you will either then see significant domestic
capital investment or significant foreign investment.
Q. It seems to me that MSNBC is blaming
everything they don’t like on race. On
the 26th, they attacked Senators John
McCain and Lindsey Graham as “old, white, establishment folks.” Isn’t there some FCC regulation against this
type of trashing and use of the race card on radio and TV? (Olivia ~ Morgan Hill, CA)
A. The FCC pretty much lets anything go on the airwaves,
particularly if it is created by sources friendly to the Obama Administration. I just wish some of these targets would stand
up and raise holy hell about it, but they all just suck it up and ignore
it. The American electorate, much less
sophisticated than it was back in the ’50’s, soon starts to believe such
character assassinations are for real.
Q. Two things circulating yesterday I would like your
opinion on. (1) Charles Krauthammer says
Obama doesn’t care about fixing the economy; he wants to destroy the
Republicans, and (2) the number of people worried about our economic future
rose by 27% since Obama’s reelection.
A. I question the second statistic; if there was that
underlying fear, although not expressed, I don’t think Obama would have been reelected. Obama does not need to worry about destroying
the Republicans; they have already destroyed themselves.
TODAY’S QUOTE:
“Librarians as a race tend to be tedious.”
~ Peter Shaffer
TODAY’S VIDEO:
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