It's a good thing we Americans are willing to borrow trillions of dollars with tacked interest from the Chinese, whose currency has risen 20% against the US greenback in the last three years, to give tax cuts for the first time during war AND to distribute to "stimulus packages" our populace so that they go scurry to K-Mart to buy cheap shit made in freakin' China. I mean, if we weren't throwing our cash at 'em hand over fist like 19-year-old sailors in a cat house, the Chinese government might not be able to afford to subsidize 75% of the fuel consumed by their general population. For a long time, I've had a theory that the Chinese were going to wait to raise interest rates on their rapidly growing economy until after the Olympics because they feared if they did, their citizens would take to the streets in a widespread protest. The Chinese have never been hip to civil disobedience, no matter how peaceful, and they know we ALL still recall the Tianneman Square Massacre of the late 1980s. Well, just add this fact, the fuel subsidization, to the theory.
On one hand, you have to hope the Chinese will desist their gas subsidies in order to lower the demand for fuel. After all, their economy may be booming, but this $4 fuel is certainly doing to inhibit ours. But, on the other hand, because the Chinese now have such a huge interest in our country, any hiccup in their own economy will lead to a full-on belch in ours. After all, the Chinese hold $500 billion in United States Treasury Securities and our debt to them is now nearing $1.5 trillion. So, just like Iraq, this poses a difficult and almost impossible to answer condondrum. The Bush Administration is continuing to grovel for the economic sympathy from China at the G8 meeting, but like any loan shark with your balls in a vase, the Chinese are loudly and clearly declaring, "You are our bitch!"
So, when you get your stimulus package or "China Money" just remember what it really costs. The interest that we, the American tax payers, will fork over to the fat belly of the Chinese for this reckless loan will most certainly help pay for their subsidization. And just as that unsettling thought is terrorizing your pretty little head just remember that the $4 a gallon gas is just now starting to really effect our economy and consumer, both of which are weaker than the Chinese. If they are just paying $1 a gallon, just how much more will their surging thirst for oil go? With the entire world on a paranoid watch for Israeli bombs upon Iranian nuclear facilities, knowing even unfounded rumors will push oil over the $150 a barrel mark within the next week or two, what will continued fuel subsidies for China's citizenry bear upon the already unstoppable price tag upon crude?
Well, about ONE BILLION Chinese have traded in their bicycles, formerly their only transportation option, in for cars in the last five years. I wonder if they will sell them to us at a discount. Maybe that's what you should buy with your China money.