A Rush to China

Bob Choi

26 February 2010

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¡K

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¡K

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 ¡K

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!