China Should Forgive American Debt
I’m tired of all of the whining from poor African countries about their debt. Sure much of it was racked up under previous, corrupt rulers, or even colonial powers, but honestly, can’t they just dig their way out of it? Last year China forgave 1.3 
billion dollars that 31 African countries owed Beijing. That works out to about 41 million dollars per country. That’s like a transfer fee for a medium/top football, errrr, soccer, player. Big damn deal! It’s great for the newspapers, but it’s not like they were ever going to see that money again anyway.
It is high time for China to stop its selfish ways and help out a country that means well, but honestly, just has a hard time managing its checkbook. Besides, while African dictatorships were pissing their money away on, well, whatever they were pissing their money away on, the US, the shining city on a hill, if I can mix metaphors, was leading freedom on the march. In fact, if it weren’t for the US, China never could have emerged as a voice of reason in the international community! Washington has turned Beijing into a responsible senior player on the world scene, one that opposes war, and brokers nuclear deals.
And what thanks do we get? A ‘junior’ Chinese official recently said they might start selling of their reserve of dollars because they’re becoming worthless (incidentally, if you own a trillion dollars now, might not be the best idea to flood the market with them. Anyway, that’ll make it easier to sell off. I’m pretty sure Washington is smart enough to be holding mostly Euros now.) If it weren’t for the US China would still be a pariah, so it’s time to grow up and let billions be bygones. Just stop trying to collect on all those US bonds you own!
As any economics professor will tell you, countries that are saddled with too much debt get stuck in the quicksand of interest. It is nearly impossible for a mismanaged economy like the US to ‘grow’ its way out of debt, especially when most of the money is being invested in goodwill projects abroad like Iraq. If China keeps this noose around the neck of the American government, how can they possibly spread their humanitarian efforts to Iran or Syria? Beijing is engaging in an outrageously short-sighted plan that is harming the world community!
So, China needs to look into its heart, and its soul, and forgive American debt. For too long the US has been held hostage to foreign debt collectors, and quite frankly, it’s weighing the country down. At this point it seems petty for China even to ask for its money back. What’s 900 billion dollars among strategic allies? You can’t even fight a good war and against a backwater country for that anymore. Besides, what would China spend that money on anyway? Probably just 400 horribly designed TV buildings.
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The Humanaught responds:
Posted: November 25th, 2007 at 11:22 am →
That’s awesome. Great post man.
Learn 2 economy responds:
Posted: November 25th, 2007 at 3:43 pm →
This post has to be the most ignorant and retarded thing Ive read on the internet. You obviously have *zero* idea about how money is supposed to work.
Josh responds:
Posted: November 25th, 2007 at 4:07 pm →
My first superlatives in a comment! And I was always curious about how ‘money is supposed to work’
Oliver responds:
Posted: November 25th, 2007 at 8:43 pm →
Thanks for that. Nice work. Very much in the line of the great Jon Swift. http://jonswift.blogspot.com
blah blah responds:
Posted: November 25th, 2007 at 9:53 pm →
I like the post, but for those of us that stumble on your site with no prior knowledge, detecting the sarcasm is very difficult. Especially because it’s just plain text with nothing to give it away.
barry b. responds:
Posted: November 26th, 2007 at 9:00 am →
interesting ideas,
If our economy dips we may just end up telling them “sorry”. wouldn’t surprise me at all. However, I would like to see our government pay as they go - like everyone should be doing. It’s unfair to enslave your citizens to trillions of dollars of debt. I blame the politicians - they are out of control.
Jeremy responds:
Posted: November 27th, 2007 at 12:23 am →
It doesn’t sound like your satire came through to everyone equally - personally this was a great read.
The greater of probabilities, though, is that the US inflates its way out of its current debt (through more debt?? Direct stealth printing of money?). Especially with brilliant ideas from Bernanke to continue the bailout of the larger banks and investment banks (such as the little publicized idea of lifting the maximum size of a loan sold off to Fannie & Freddie to a cool $ Mil.
But a forgiveness of over $1 trillion would make a nice Christmas present.
Danwei : Danwei Picks: 2007-11-28 responds:
Posted: November 28th, 2007 at 5:55 pm →
[...] China should forgive American debt: Josh at Cup of Cha makes the case for debt forgiveness:China needs to look into its heart, and its soul, and forgive American debt. For too long the US has been held hostage to foreign debt collectors, and quite frankly, it’s weighing the country down. At this point it seems petty for China even to ask for its money back. What’s 900 billion dollars among strategic allies? [...]
Zhang Xi responds:
Posted: January 7th, 2008 at 4:21 am →
I’m sorry but what we believe is if it weren’t for the Western robbers, namely colonists, China will be as powerful as America, if not better.
So-called Western “civilized” countries owe us much.