War Economy - Owned By China

It makes me sad (and angry) that despite the amazing job the US military is doing in Iraq and Afghanistan, the greedy bunglers in the White House make one disastrous decision after another.



A significant reason for the current $9.6 trillion federal debt has been the Iraq war, which the U.S. largely financed through borrowing. The main problem is that "the U.S. had to borrow money from foreign nations at an alarming rate, after it dug itself into debt paying for the Iraq War while cutting taxes."

Thus, the United States had to turn to investment from abroad for financing. This, as well as lax regulation and oversight of Wall Street contributed to the credit troubles. Currently, 45 percent of Treasury securities are owned by foreign nations, with the most owned by China and Japan. Other nations owned less than 20 percent of these securities as recently as 1994.

Bush left out of his assessment the fact that much of the foreign investment went to finance a war and his tax cuts.