For the Chinese, there were oblique criticisms that America’s profligate ways had sent the global economy into a tailspin and threatened China’s stability. Largely unspoken is the fact that the Chinese government has become the largest holder of United States Treasury securities, with about $600 billion of China’s savings invested in American debt.
“The important reasons for the U.S. financial crisis include excessive consumption and high leverage,” Zhou Xiaochuan, governor of China’s central bank, said in a statement. “The United States should speed up domestic adjustment, raise its savings rate and reduce its trade and fiscal deficits.”
Wang Qishan, China’s deputy prime minister, was more blunt: The United States, he said, should stabilize its economy as soon as possible to “ensure the safety of China’s assets and investments in the U.S.”
Emphasis added by me.
In the 1980s, we were beholden to the Japanese.
Now our balls are in the hands of the Chinese.
Now only does history repeat itself, so does national humiliation.
And China, if we did reduce our trade deficits, who the fuck would you sell your cheap shit to? America buys most of it.