Op-Ed: Is US-China Relationship a National Security Issue?
America shouldn't become overly comfortable with the "China needs us and we need them" premise.
With regard to Howard Simons' article, Chinese Monetary Policy and US Fixed-Income about the relationship between the Treasury and China, I'd suggest that we not become overly comfortable with the "China needs us and we need them" premise. I believe our national debt and our relationship with China/Japan is a national security issue. Should the USA default on its debt, will the Chinese act in a gentlemanly way via bankruptcy courts? I think not. A debt default or restructuring will cause World War III. I believe the Chinese are smart enough to realize this and will distribute their Treasury holdings over the next few years. I hope for the sake of the world they do so. Default will end in violence. The only other alternative we have is massive cost-cutting. But I don't believe there is the political will to do so.
We don't have much time to continue the "pretend and extend" of some $60 trillion of debt. If concrete action is taken, we'll go back into a deep recession. If concrete action isn't taken, we'll someday find our children on the battle field of WWIII. As a father of three sons and a daughter, lets take our pain and cut spending nationally, state-wide, and locally. We need to take our hit for future generations.
I'm not sure if there's an executive order allowing the president to take unilateral action in the event of an economic emergency, but with some 500-plus Congress/Senate members, there's no way the hard choices will be made. We need a president who's willing to unilaterally interpret Executive Economic Emergency Powers to authorize cuts in spending and order restructuring at every level of government. This action is highly deflationary and will be as difficult a choice that's ever been made since our inception as a nation. I believe the restructuring can be accomplished over an eight-year period of time and we'd have a fresh start. The alternative is economic/military war.
I'm not being political, but I don't believe President Obama has the inclination to examine Executive Branch Emergency Economic Powers to make the tough choices. The WWII generation was considered the greatest generation for their sacrifice to their nation. Our generation is as a self-indulgent generation as the world has ever known. I'm suggesting we step up and take our hardships economically to save the world. This is a hell of a lot less sacrifice than one's physical life. Will it be hard and difficult? Absolutely! It's our time to stand up and take our sacrifice for future generations!
Seniors: They must except less benefit.
Government workers: Pensions must be brought in line with traditional Define Benefit plans. Government workers include those at every level -- state, local, and national.
Private employees: Unemployment over the next eight years will rise dramatically; finding a new job will be impossible. Families will have to cohabit.
Militarily: Spending must be cut and we need to move out of the Middle East.
Private employers: Restructure and prepare for a new dawn! It may take eight years but once accomplished, our nation will rise once again!
I believe all of the above is far more attractive than the millions of lives lost in World War II.
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