This Bog continuously raises the dangers from our out-of-control spending and the United States budget deficits. These concerns have mainly focused on the economic challenges deficits bring us. But there are more dangers lurking from the deficits.
The United States has been the preeminent world power since World War II, both economically and politically, which has offered Americans security and the ability to have a high standard of living. This preeminence is at risk due to the huge deficits and our need to borrow money from other countries, some of which are unfriendly to America. One example of this dangerous dependence on foreign funding for our deficit is China.
“Our retaliation should not be restricted to merely military matters, and we should adopt a strategic package of counter-punches covering politics, military affairs, diplomacy and economics to treat both the symptoms and root cause of this disease.”
“Just like two people rowing a boat, if the United States first throws the strokes into chaos, then so must we.”
“For example, we could sanction them using economic means, such as dumping some U.S. government bonds.” said Luo Yuan, a researcher at the Academy of Military Sciences.
There are those that believe that China, with about $800 billion in U.S. Treasuries, would not risk devaluing these holdings by “attacking” the US economy. Before we feel too comfortable with this conclusion, let us remember that shortly before the Chinese attacked the United Nations forces in Korea in 1950 our experts promised us they would not risk such a military venture. History demonstrates that it is safer to take the Chinese at their word.
The ongoing budget deficits present a clear and present danger beyond economic ones. Next to threat from militant Islam, these deficits offer the greatest danger to American security.
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