9. A Rush to China

(Below is an interview between Joe Blow, host of the TV program “Your Money Matters” and Bob Smart, famed author of New York Times best-seller “One Minute Economist”.)

Blow: Bob, what nuggets of wisdom would you like to share with our viewers today?

Smart: Well, I’m wondering how much the average American understands the financial situation this country is in.  If they knew only half of what they should know, they wouldn’t be sitting on their hands, they would be out on the streets, marching…

Blow: What are you saying?

Smart:  I’m talking about the national debt, Joe.  The figure is astronomical.  To put it in a way we can all understand, the latest estimate is that every man, woman and child is in hog for US$30,000 as a result of our national debt.  Two-thirds of that is owed to foreign governments which are holding US Treasury Bills.

Blow: Yeah, but that’s old news…

Smart: Joe, do you know how much you owe the Chinese?

Blow: What?

Smart: China is holding a quarter of our foreign debt.  This translates into $5,000 owed to the Chinese by each and every US citizen …

Blow: Wait a minute Bob!  This is government debt, not personal debt.  It’s the government’s problem.  Why should an ordinary Joe like me worry about the national debt?

Smart: That’s what I’m afraid to hear, Joe.  Our government’s debt is our debt!  We’re paying for this debt through taxes.  Do you know over 16% of our taxes goes to paying interest on our national debt alone?  

Blow: So, are you saying we’re all working to pay off the interest owed to China and other foreign governments?

Smart: You said it!  That’s what I’m trying to say!

Blow:  Holy Smoke!  I’ll be working for the Chinese for the rest of my life!  I don’t even like the Chinese.  How can I ever get out from under this debt?

Smart:  I’m glad you asked.  You can get out once and for all if you emigrate to China.  Then we’ll all be working for you!