China and Economic Warfare

The evidence is mounting that China has pointed the economic equivalent of a nuclear weapon at the US. China (and possibly some other countries) are in a position to cut-off the flow of money into treasuries that the US NEEDS to pay federal expenses month to month. We are a debtor society. We require foreign funding to sustain our current spending. Without it, the government would be forced to print worthless dollars. Checkmate (hyperinflation). China swallowed a shitload of toxic MBS and agency debt. They are pissed. It's becoming pretty clear that they have backchannelled a demand to our leaders that funding will be cut-off if the toxic debt is not purged from their markets. That is what this bill is really about when it comes down to it. It does nothing to recapitalize banks, but it does restore the foreign money pump required for us to fund our economy. We are no longer controlling our destiny or government. It's a sad predicament.

Not unlike a gambler begging the loan shark for an extra week to try and kite the debt.