Posted by WARREN MOSLER on February 23rd, 2009
Transcript from a local meeting with our non voting representative to Congress. Must be the Democratic Party’s script:
by Carol Buchanan
Feb 19 (St. Croix Source) — “In her presentation she mentioned that the money for the stimulus package would be borrowed and the first question from the audience was “Who was the money to be borrowed from?”
Much of the U.S. debt is already financed by China through the sale of federal securities such as Treasury Bills, and Christensen assumes that nation will also be the purchaser of new securities floated to finance the stimulus.
That answer was immediately followed by the question, “What if China cuts us off?”
Christensen said that, from what she has heard and read, China and Japan and other nations who purchase United States securities, financing the debt, would not cut off the United States because the United States would then be unable to buy their products. It is in China’s interest for the U.S. economy to be strong enough to buy the goods it produces.”