Putting China First Puts America's Seniors Last

[jtown1123]

Entitled to Know Blog
GOP’s Pay China First Plan Puts America’s Retirees Last
By NCPSSM | February 1, 2011

New Republican legislation would require the U.S. to send huge amounts of money to our foreign creditors and major financial institutions before paying off its obligations to Social Security beneficiaries and other citizens owed money by the Treasury, if Congress doesn’t raise the debt ceiling. The bills are sponsored by Pennsylvania’s new tea-party backed Senator, Pat Toomey, and Rep. Tom McClintock of California. The reaction has been understandably blunt:

“Senator Toomey certainly has a fascinating perspective on our national priorities – not to mention his obligations to his constituents- considering the Senator’s proposal would have us pay China before we make monthly payments to the millions whose Social Security check is the only thing standing between their ability to scrape by and falling into complete and utter poverty. Never mind that our current retirees were paying into Social Security long before China became our nation’s bank.” Forbes, 1/31

The REST: http://www.ncpssm.org/entitledtoknow/?p=1580

[dkf]

1. The thing is we still need China to buy our bonds.

[jtown1123]

2. It's highly unlikely China would refuse to buy our bonds and if they did, it would actually be good

for us. It would stop their currency manipulation thus allowing the U.S. to export more since our goods would be cheaper. Nevertheless, it's an empty threat.

http://www.guardian.co.uk/commentisfree/cifamerica/2009/mar/30/us-economy-china-debt

[unblock]

3. americans buy far more bonds than the chinese.

in fact, american seniors probably buy far more bonds than the chinese, albeit not the same american seniors who are completely dependend on social security payments.

selective default is completely idiotic, the rating agencies and any reasonable creditor would consider it no different than a complete default. the federal government would have to pay more across the board for all borrowing, which would cost far more than any savings that would come from screwing seniors.