Is  Romney Worth Borrowing Money from China?

By Shlomo  Maital

 

In their first debate, Romney vs. Obama,   Romney continually told Obama his key criterion for government spending would be:  Is this worth borrowing money from China for? 

   Obama looked lethargic, listless, failed to look into the camera (a two-year-old’s mistake), failed to look at Romney (even a baby wouldn’t do that), and failed to defend and attack Romney’s positions.  Whoever coached him should be fired (Obama chronically hires incompetent advisors).  Perhaps Obama himself should be fired.
   But Romney too deserves a failing grade.  For over a year now,  China has been REDUCING its holdings of US Treasury bonds (see graph).  It is not China that is buying US government bonds but Japan! And the rest of the world.   Why?  Because US Treasuries are still perceived by the world as safer than, say, Greek sovereigns.  And, because Japan’s high-flying yen,  at around 78 per dollar, is ruining Japan’s economy (again!) and Japan is desperately trying to hold down its value by buying dollars and dollar assets. 

    Now, when a candidate for President is at least a whole year out of date, one must worry. 

     My conclusion:  Both candidates are incompetent to run the world’s largest economy, on which all of the world’s 7 billion inhabitants are dependent.  Cancel the election.  And find new candidates.  Hillary, say, matched against, well, who?   Anyone!

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