By Chris Rossini
Presidential hopeful Lindsey Graham took a brief moment from advocating constant war in the Middle East, to advocating confrontation with China. There's never a fight that Senator Graham doesn't want to use your money to wage.
Yet, here's Graham flexing his muscles again:
If I'm president, we're going to push back against China. Here’s my foreign policy — a clenched fist and an open hand. You choose."
Even Henry Kissinger knows that you don't bite the hand that feeds you, when he says: "It's important to avoid any military conflict between the U.S. and China." But, Lindsey Graham is Lindsey Graham. Force and coercion are his milieu.
We all know that China is a major creditor of the United States federal government. Unfortunately, the Chinese government has considered it in its interest to issue so much credit to the bankrupt U.S.
We Americans have been living an illusion for quite a while now. The Chinese accept fiat dollars (that The Fed continually creates) and they send us real goods and wealth in return. China has the factories, and we have the Visa cards.
The Chinese then take the fiat dollars and buy U.S. Treasuries with them, giving the U.S. government (of which Lindsey Graham is a part of) a financial lifeline. You don't need a Ph.D to figure out how this one will end down the road.
Lindsey Graham barking at the Chinese is very similar to Greek Prime Minister Alexis Tsipras barking at the European Troika. It didn't work out so well for Tsipras, despite threats, votes, or celebrations of democracy. All of it meant nothing.
In the end, when you're a deadbeat debtor, it is the creditor who holds the cards. You're in no position to show the creditor "a clenched fist and an open hand."