victor809 wrote:... The two aren't necessarily related.
Your Chinese colony problem doesn't go away if we start using our own oil. We don't get to pay off the Chinese with that money, because we'd need to fulfill the other strategy (invading army). Otherwise, we become inconsequential goat herders when our oil runs out.
Don't tie the two together because you simply see one as a quick way to slap a band-aid on the other. If you do that you aren't any better than our politicians.
Perhaps, I wasn't clear. Unless our "leaders" switch course and legislate with an eye towards strengthening our financial standing, we will have little ability to control anything by the time the Saudi's run out of oil.
The more our domestic debt is financed by foreign interest, the more we loose control of said debt. He who controls the $$$ controls the government.
Suppose at some point a holder of said debt decides he wants to make a point. Debt holder could dump an amount of that debt on the open market thereby creating a surplus and driving down offer price. Debtor would then have to issue even more debt to maintain cash flow. Debt holder then purchases more debt at an even lower price point further tighten it grip on the debtor's testicles.
It seems that at the moment the Chinese have the biggest set of pliers.
