Liberal Talk Radio

Being beholden to a lender induces a state of servitude which in its extreme instances is exactly akin to outright enslavement.  Enslavement, whether by chain or by checkbook, is the opposite of liberty, the most American of values.  Thus have personages from Christ to Franklin proffered admonishments against indebtedness.

But Bush — and, under his watch, America — has forgotten this most basic lesson. In following Reagan’s “voodoo economics” (decried as such by his own father), Bush has cut taxes while increasing spending. And American consumers have followed suite, indulging in an unprecedented borrowing binge, the hangover from which is just beginning to be felt.  The national debt and current account imbalance have grown dramatically under Bush’s reign.  If you spend more than you make, you’re borrowing, and in the case of the American government, we’ve largely been borrowing from China.

At some point, the chickens come home to roost [please insert your favorite folksy cliche' here], and lenders stop lending. Writ small: poor Americans are unable to get credit for a home purchase, and some go under, the victims of predatory practices designed to somehow underwrite the previously marginal borrower. Writ large: China says “America – you my b*tch”:

The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.

Two officials at leading Communist Party bodies have given interviews in recent days warning – for the first time – that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress. Shifts in Chinese policy are often announced through key think tanks and academies.

Described as China’s “nuclear option” in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.

I have no idea if this is a credible threat, but it certainly is a realistic one.

More proof that George W. Bush is and always shall be: Worst. President. Ever.