Saturday, July 18, 2009
Follow the Money Winds
Forbidden City Guardian Lions, Beijing, China (photo: RLW)
Think all those Green jobs our political elitists are promising will be in your town, county, city or state? Think again. Follow the Money Winds.
This week China announced that its foreign-exchange reserves have surged past the $2 Trillion mark in the 2nd Quarter for the first time. This is the largest amassing of currency reserves in the history of mankind. China is also building the six largest wind power farms in history, along with myriad other Green power initiatives. Coincidence?
Meanwhile China lifted its U.S. Treasuries holdings to $801.5 Billion, making China the owner of more than 20% of our foreign held debt. Our U.S. deficit is over $1 Trillion, and China will soon hold over $1 trillion of our debt. Who will call the shots moving forward?
China can and will manufacture the “stuff” required for Green power in-country, for half the price, while protecting its domestic Green industries from competition. That means one of two things. Either those green jobs you are looking for will be in China, or they will be deficit-funded by our government at twice the price and we'll pay China interest for the privilege.
Posted by Richard Wottrich at 6:39 AM