China Questions Costs of US Healthcare Reform

China Questions Costs of US Healthcare Reform

blogs.reuters.com

Guess what? It turns out the Chinese are kind of curious about how President Barack Obama’s healthcare reform plans would impact America’s huge fiscal deficit. Government officials are using his Asian trip as an opportunity to ask the White House questions. Detailed questions.

Boilerplate assurances that America won’t default on its debt or inflate the shortfall away are apparently not cutting it. Nor should they, when one owns nearly $2 trillion in assets denominated in the currency of a country about to double its national debt over the next decade.

Nothing happening in Washingto

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Related AboveTopSecret.com Discussion Threads:
United States and China Heading to War?

It's looking more like the new healthcare program will cost government significantly more rather than less and our friends the Chinese who hold almost 2 Trillion of our debt are concerned about US future spending!

'For instance, a new study from the U.S. government’s Centers for Medicare and Medicaid Services finds that the healthcare reform bill recently passed in the House of Representatives would increase healthcare spending to 21.3 percent of GDP by 2019 compared with 20.8 percent under current law. That’s bending the curve the wrong way."

Who is Obama, Pelosi and Reid trying to fool? Not the Chinese!

blogs.reuters.com
(visit the link for the full news article)

From the related CNBC Blog by Busch

As you may have read, the Chinese grilled OMB director Peter Orzag on the impact that the health care bill would have on the US fiscal position. As I have warned, the passing of the current bill by Congress is a negative for the US dollar and may trigger a re-evaluation of Chinese US Treasury purchases.

and:

The massive increase in Chinese holdings of US dollars and US Treasury securities has two big potential problems. One is the United States government dependence on a foreign entity for loans. Two is the facilitation of borrowing to the United States that perpetuates a belief that massive and ever increasing borrowing can continue without a cost. Both contribute to a dangerous situation should a sudden shift in the structure occur.

China will have to bite the bullet soon themselves.
One day that will come to pass.

So, is the real reason there are only two Major Party's left in our Election system is because China is really the controlling party?? I mean, over the last 20 years the obvious difference between the two party's were really Right and Left....now, there basically the same thing.

I now believe that China has such a strangle hold on everything we do that even the two party system is gone....LONG LIVE THE ONE PARTY SYSTEM...CHINESE COMMUNISM AND INFLUENCE.

Congrats America...you really screwed this one up.....

reply to post by plumranch


It seems clear to everyone in the world except the "Progressives" that this is going to be a bad financial move for the USA.

Ask a "Progressive" how they plan on paying for this and they just stomp their foot like a two year old girl and say I don't care how we are going to pay for it I want it.

This is exactly what i predicted would happen, back in august.

The Chinese buy our debt so that we can continue purchasing Chinese products and keep their people employed and making money. They do not buy our debt so that obese pigs can have access to free health care.

Im sorry but i agree 100% with the Chinese on this, we the US are supposed to be a capitalistic nation. Not only the chinese but other nations will be much much more reluctant to buy our debt.

Remember it is our debt holders who would be financing this backwards attempt at universal healthcare, so they literally are paying to provide coverage for american citizens over their own citizens then.

Originally posted by Desolate Cancer
Remember it is our debt holders who would be financing this backwards attempt at universal healthcare, so they literally are paying to provide coverage for american citizens over their own citizens then.

Joe Six pack tax payer is footing more of our debt than the Chinese

This is about as much as many people
here at ATS know about US debt.

[atsimg]http://files.abovetopsecret.com/images/member/9aada34ec057.jpg[/atsimg]

Who really owns most US debt?
Foreign Investment accounts for only 29% which
includes China, Japan and the rest of the world

[atsimg]http://files.abovetopsecret.com/images/member/f8db83721788.jpg[/atsimg]
Source

China and others are buying US debt because, despite everything, the US is seen as relatively safe investment in uncertain times. (China also likes US debt because it helps keep Chinese exports cheap.) Countries that are a bit riskier will have that reflected in a sovereign debt rating and will have to offer higher yields. But they will still have buyers at those higher yields -- either private institutions or governments that are still net creditors.

Originally posted by SLAYER69

Joe Six pack tax payer is footing more of our debt than the Chinese

Of course we the citizens of our own country own the most debt. Gets weird though now that the fed has been or will be buying up lots of the debt itself.

But China is a significant owner of debt in its own right, and has a vested interest in how money is spent, especially if that money is funded through increasing the national debt, resulting in either diluting their investment or requiring of them to keep buying more debt.

The point is that politically and business wise for China it is very risky for them to be buying MORE debt (which is what we need) in order to fund a universal health care system, when their own people are not being taken care of, and since the universal health care system does little to help the chinese economy, I mean unless most of our medical products are going to be made in China. If there will even be an increase in medical product usage, I dont know?

If you lie to the largest debt holder country, China, on what socialized health

care will cost for the U.S. population it will come back to bite us big time

financially as a nation. The real problem will be when the realization sets in with

the people of this country of how much it will cost each individual and be

deducted from your check from your job for your labor.


Remember this money will be taken out of your check enforceably like it or

not when the health care bill passes Congress.


This will mean Less money for food, utilities and gas for your car ect. ect. for

households in this country. We will pay alright with the government capturing

and controlling 1/6 more of the U.S. economy thru socialized health care.


Will those specific state districts receive billions of dollars of pet projects for

last minute needed Congressional on the fence votes for passing the

finalized health care bill? ^Y^

reply to post by amari

If you lie to the largest debt holder country, China, on what socialized health care will cost for the U.S. population it will come back to bite us big time financially as a nation.

Obama: Debt Could Fuel 'Double-Dip Recession'

Maybe the Chinese were able to convince Obama that healthcare for the US, the way Obama and the Democrats are doing it is too expensive? Second thoughts?

Politics in this "meeting" with the Chinese is very important. The assumption is that they NEED our debt....

Truth: There are many nations who CAN take our place...EU. It should be easy for them to make the transition but why dont the Chinese do it???

reply to post by hoochymama

Truth: There are many nations who CAN take our place...EU. It should be easy for them to make the transition but why dont the Chinese do it???

There are many countries that the Chinese can lend their excess dollars to but in spite of what you may believe, the US still has a very high credit rating. Hard to believe, I know, but, and this is all comparative, the US's ability to repay their loans is still very good. We have a relatively good credit rating and that is just a relative rating.

The other reasons China prefers to loan to the US is that the US and China actually have a very good international relationship going. China isn't threatening any of our allies and we aren't about to attack any of China's. China is a great military counterbalance to Russia who is the reckless kid on the block lately.

Several sound economic reasons as well based on yuan and dollar valuation, not to mention the US is their chief trading partner.

and then there is this just off the press:Expert: Obama's China trip shows U.S.-China ties broad, deep

The United States is taking a multilateral approach towards world affairs and making "multilateral efforts and China is part of those efforts," he said. Therefore, "what this trip successfully did is what I think makes the United States and China read from the same play book on a lot of issues." Noting that the trip is "part of a process," he said it "can't be looked at alone, it needs to be considered as part of the process of the Obama Administration changing American foreign policy globally as well as with respect to China."

Which of course is some usual political baloney but then again, Obama made no threatening or challenging statements meaning that China is still our good buddy.














[edit on 19/11/09 by plumranch]