Aside from the fact that each American next year will chip in more than $800 just to pay interest on this debt, that situation means America's government is dependent on the largesse of foreign creditors and subject to the whims of international financial markets. A foreign government, through the actions of its central bank, could put pressure on the U.S. in a way its military never could. Even under a more benign scenario, a debt-ridden U.S. is vulnerable to a run on the American dollar that begins abroad.Either way, Mr. Haass says, "it reduces our independence."
A lot of the deficit is being financed by China, which is selling the U.S. many billions of dollars of manufactured goods, then lending the accumulated dollars back to the U.S. The IOUs are stacking up in Beijing.So far this has been a mutually beneficial arrangement, but it is slowly increasing Chinese leverage over American consumers and the American government. At some point, the U.S. may have to bend its policies before either an implicit or explicit Chinese threat to stop the merry-go-round.Just this weekend, for example, the U.S. angered China by agreeing to sell Taiwan $6.4 billion in arms. At some point, will the U.S. face economic servitude to China that would make such a policy decision impossible?
Staggering as the defense outlays are, the deficit is twice as large. The much smaller budgets for the rest of America's international operations—diplomacy, assistance for friendly nations—are dwarfed even more dramatically by the deficit.These national-security budgets have been largely sacrosanct in the era of terrorism. But unless the deficit arc changes, at some point they will come under pressure for cuts.
2025 China will acquire 14 thousand barrels of oil per day
China: Threat to US National Security
The Threat From The Far East: China<br />By: Andrew<br />
1/3 $ is borrowed</li></li></ul><li>2020 $20 trillion of debt<br /><ul><li>2020 there will be $20 trillion of debt</li></li></ul><li>Where does the money come from?<br /><ul><li>Little more than half is owned by the U.S.
Foreign aid</li></li></ul><li>Why is this a Threat?<br /><ul><li>The American model is being undermined before the rest of the world</li></li></ul><li>Military<br /><ul><li>China is increasing military spending
They face no threats</li></li></ul><li>Military<br />
Military White Paper (2011)<br /><ul><li>The U.S. is reinforcing military alliances and getting more involved in regional affairs
"The United States continues to sell weapons to Taiwan, severely impeding Sino-US relations”</li></li></ul><li>China Assessment of U.S.<br /><ul><li>Used over 90 Satellites in Iraq