Your View: China's actions, U.S. debt will wreck our economy
President Obama recently said in an interview with George Stephanopolus that the national debt is “no big deal.” Well, the debt is increasing at the rate of $47,000 a second or $845 million a day. Where I came from that’s a huge deal. This year the deficit is projected to be $915 billion added to the already $16.5 trillion we owe.
An announcement by China last September will have a huge effect on our ability to reduce our national debt. China will begin selling oil to any nation in the world using Chinese currency, not the American dollar. This announcement will have a vast effect on our ability to pay down the national debt. China is not an oil-producing country. How does this affect America, the dollar, and the national debt? On Sept. 6, 2012, Russia agreed to sell China all the oil it wants, using the Chinese currency. The dollar has been supported by the fact that American dollars have been the medium of exchange for oil worldwide.
Once the majority of the world begins to bypass the dollar and purchase oil with other currencies, the full weight of our debt and diminished manufacturing structure will come crashing down on us. America has, in the past, been able to support our huge national debt because of an interest rate of 0.25 percent. The printing of money by the Feds has kept the rate artificially low. The interest rate must eventually go up. An increase of only 0.25 percent will bring our interest cost on our debt to $440 billion dollars per year.
Erskine Bowles, a co-chair of the President’s Debt Reduction Committee, has called our nation’s compound interest burden as “one of the biggest long-term challenges facing the United States and by 2020 we will be spending one trillion dollars per year on interest.”
YOUR VIEW POLLS
State Sen. Trudy Wade, R-Guilford, has proposed redistricting county school board lines, reducing board member term lengths and making elections partisan. What’s your view? In 30 words or less (no name, address required), email us your thoughts to firstname.lastname@example.org. Here is one response:
• Steve Ilderton doesn’t know what he is writing about (Your View, Monday). Why does he think High Point has the most private schools per capita than any other city in the state?
Sen. Stan Bingham has introduced Senate Bill 138 to allow N.C. high schools to offer elective courses in historical study of the Bible as long as they maintained religious neutrality and diversity of views, traditions and perspectives. What’s your view? In 30 words or less (no name, address required), email us your thoughts to email@example.com.