Why Sarah Palin is Wrong About China

James DiGeorgia

Warning: If you have a politically conservative political persuasion, you may find this editorial hard to read.

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Debt vs. Slavery

Former Alaska governor and 2008 Republican vice presidential nominee Sarah Palin found a new way to demonstrate her ignorance last week. Speaking at a political fundraiser in Iowa, Palin said:

"Our free stuff today is being paid for by taking money from our children and borrowing from China. When that money comes due — and this isn’t racist, but it’ll be like slavery when that note is due. We are going to be beholden to the foreign master."

Palin does a tremendous disservice to the conservative movement. She is one name on a long list of undereducated, misinformed political celebrities claiming to be conservative lions.

These buffoons appear on TV news shows every night to predict economic ruin and bemoan the nation’s spiritual spiral downward. Now Palin says we are on the threshold of being enslaved by China.

This is plain nonsense! Governor Palin and her fellow extremist friends need to face three facts…

  • There is zero risk of the entire national debt coming due at once.
  • There is zero risk of debt enslavement.
  • There is a very real risk the U.S. will default on some of its debt to China and everyone else. Palin’s own allies very nearly made it happen last month.

The government shutdown cost our nation an estimated $25 billion. A default on the national debt could cost our country $1 trillion or more.

She also fails to grasp how slavery works.

  • Slaves can’t print money to buy their freedom.
  • If a slave suddenly comes into money, or anything else valuable, it is not the slave’s to keep.
  • Debt is not slavery. Debtors are debtors and slaves are slaves.

Misunderstanding these basic facts simply proves the emptiness of Palin’s own rhetoric.

A steady stream of such nonsense drove Palin and her party into extreme disfavor in swing states — and kept them from winning the White House in 2008 and 2012.

Investors Must Face Reality

Sarah Palin’s fundamentalist theology keeps her focused on the "end days" instead of the bright future ahead. Investors would be wise to ignore her.

Investing in fairy tales that say the world will end soon or China is going to enslave you is a surefire way to lose money.

The most-successful investors are those who accept reality. Here it is:

  • The United States borrowed U.S. dollars from China.
  • It is therefore obligated to repay the debt with U.S. dollars.
  • We are not obligated to repay China with our liberty, or our gold, not with oil and certainly not with our enslavement.

We will pay our debt to China in U.S. dollars and nothing else. It’s just that simple.

Because China owns so much dollar-denominated debt, it would never serve Chinese interests to hurt the value of the dollar. A strong dollar means more Chinese exports and more buying power for its imports.

As for the U.S. economy, Palin and her legions would do well to pay attention to the Federal Reserve Vice-Chair Janet Yellen, who will soon take the reins from Ben Bernanke. Dr. Yellen has a firm grasp on economic reality. She will promote the policy changes needed to create new wealth and prosperity.

Ironically, Gov. Palin compared debt to slavery in the course of promoting her new book about Christmas.

Christ knew about slavery. He saw it with his own eyes. The Jewish people experienced slavery before, during and after his time on earth.

Jesus nevertheless taught charity and love for everyone, even our enemies. He would have looked quite liberal to Sarah Palin.

I know this may be a bitter pill, but it’s true. Policies that unjustly deprive the poor are inconsistent with Christianity.

Gov. Palin would do well to postpone her book selling tour … and take an extended ride with the nuns on the bus.

Good luck and best wishes,

James DiGeorgia

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Your thoughts on “Why Sarah Palin is Wrong About China”

  1. Kudos for your willingness to criticize a right-wing icon. We need to get our economic house in order, but it doesn’t have to happen all at once. We tried that in the 1930s and it did not end well! China is unlikely to be anyone’s “master” after their real estate bubble bursts like Japan in the 1990s. The best we can do is to gradually pay down our debts and prepare for many years of a slow growth economy.

  2. I don’t necessarily have a problem with your Palin comments, but Yellen – oh boy, you are terribly misguided. I had your work on my watch list for potentially pursuing your subscription services, but this one definitely has me rethinking that.

  3. Right now, there are many people that are slaves of their own making that the Government is their master.

  4. I am trying to find if any point you made is valid. This debt will be paid off in $USD alright by higher taxes which IS a form of slavery or similar to being a bond servant to the US gov. OR the Chinese take their surplus $USD and buy up our resources like for example China owns all the coal in Wyoming. Note that none of these have the Chinese harming the $USD. Score that one of Palin and if she is an airhead what does that make you.

    And when they have converted all their $USD to natural resources in the US and around the world then :
    Zero risk of the national debt coming due all at once?!?!? If China as part of the BRIICs coalition succeeds in removing the $USD as the world’s reserve currency because Yellan will continue to destroy the value of the currency resulting essentially in the debt coming due almost overnight. Score another for Palin. Liberals like yourself are flawed in basic economics and rather fall victim to an articulate speech or a Ph.d from a idealistic socialist university rather than common sense economics.

    Need I go on.

  5. I have been using Weiss’s services for many years, always a beacon of light and reasoned discussions about the state of US and World financial systems. Where did he dig you up?. Please unsubscribe me from your poisonous nonsense. The US is bust pal, Its already a deadbeat, it just hasn’t been officially announced yet.
    Ask your boss he knows whats going on he can explain it to you.

  6. The U.S. – China debt is not complicated. Just follow the money. The U.S. could not borrow dollars from China unless China had dollars in the first place. Obviously they do.

    Where did the Chinese get their dollars? From Americans who bought Chinese goods. They may be cheap but we buy a lot of them.

    Since dollars are of no use to China domestically, the dollars must somehow return to the U.S. The amounts are so vast that those dollars seek out the safest, most liquid markets. That happens to be U.S. Treasury securities.

    if we allowed China more freedom to buy U.S. businesses, real estate, and other assets they might not be so eager to lend their cash to our government. As it is, we allow them few other options.

    The primary problem is excessive U.S. government debt. If it makes us China’s debt slaves, it is because we chose to become so. Changing the situation will require 1) An end to deficit spending by the federal government and 2) A choice by American consumers to send fewer dollars to China.

  7. I have been reading Uncommon Wisdom for some time and find many items interesting. This one is not Uncommon Wisdom. It is Common BS – oft repeated Democratic left-wing propaganda. Much of the info touted to be facts are not at all – not worth my time to enumerate them all here.

    This is not the first place I have heard someone indicate cost for the October shutdown as $25 billion. Others at least attributed the number to an OMB report which I was able to downlo9ad from the internet. The purpose of the OMB is to support the President and his policies. So one wonders haw accurate the number is!

    I agree with what many others have said but will continue to read Uncommon Wisdom for a while longer.

  8. ” Policies that unjustly deprive the poor are inconsistent with Christianity.” The assumption here is that conservative policies adversely affect the poor which is nonsense. Conservative policies that reduce the influence of government and promote economic growth create employment, which enables the poor to find work and to better take care of themselves. When taxes are lowered revenues to the government increase and enable programs for the poor to be funded without additional debt. But there is a more fundamental fact. Jesus did not forcibly take resources from others to care for the poor and the sick nor did he crow about how he cared for the poor more than anyone else. Jesus used the Power of the Holy Spirit to create miracles, and gave credit to God and the Holy Spirit. Very different from progressive politicians who forcibly take from others (taxes and regulations) take credit for “good intentions” paid for by other people’s money to maintain their own political power. Socialism is not aligned with the Christ consciousness, as it is based in fear. Christian good works are based in love, love of the Almighty and every fellow soul. Sarah Palin is a great example of a woman of faith with a servant’s heart, and just think how much more this nation could achieve following a path of love and individual liberty.

  9. Maybe you should refer to Bonaparte’s quote which is still true today

    “When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain”.

    And as for printing money as a way out of the debt will result in crushing the poor and the down-trodden. Surely that’s not your intent.

  10. Me thinks you seek to advance the Agenda of the Elite; which is to destroy the American Middle Class and establish a world run by Global Technocrats profiting from Reserve Bank Policies to hype the stock market at the expense of the people.

  11. I am quite surprised to read BS like this on the Uncommon Wisdom website. Palin is a Politian and will use words that strike a chord in the minds on her audience. “Slave” may not be the proper word but it conveys the proper message. While we may never bow down to Chinese overlords; I doubt Obama or our next president will get in the way of China’s expansion in the south sea (except for BS rhetoric and chain rattling).

    It is also typical liberal BS to blame the tea party and republicans for shutting down the government and causing the loss of millions while the liberal “tax & spend our way to prosperity” jackasses put us trillions in the hole.

    I would also point out that Christ never said it was the responsibility of the Roman government to feed, clothe, and shelter the poor, but the responsibility of the Body of Christ. The group that liberal fools want to silence in the nation by labeling them the fools and banning from all political discussion (except when it suits them). The Bible also says he that doesn’t do his share (no matter how small or meaningless) shouldn’t eat the fruit of those who do.

    I would never take advice of any kind from a jackass such as the one writing this piece of liberal BS trash!

  12. I completely disagree with everything that you have written and have to wonder about your economic education? I don’t think you understand money just monetary markets. This country has been sold off and when the dollar – petro dollar soon collapses, Yes then we will default and metals & water will be the only thing that China will accept from us, Maybe you didn’t know about the 700 Acer military facility in Mexico just outside of us border. That is for collecting there debt when the whole thing falls. You have lost tremendous credibility in my eyes!!!

  13. I do not know Sarah Palin, nor would I defend her politics. However, you have taken a very confrontational view, and supposedly you are basing your investments on your belief in the Democratic view of socialism. That form of socialism is always (no exceptions anywhere in the world) must be enforced sharing by a police state.

    Secondly, it depends on your beliefs about slavery whether debt is slavery. If we take the UN’s definition of debt bondage, they define that as a form of slavery. The UN has extended this definition to take into account the approach businesses took to put their employees in debt bondage – the Company Store. This was characterized by Tennessee Ernie’s song – 16 tons. Debt bondage is a person’s pledge of their labor and/or services as repayment for a loan or other debt. Debt bondage can be and is passed on from generation to generation. Yes, you can argue (semi-successfully) debt bondage applies to an individual; not a country. However, when we study debt world-wide and through history, we will find the overthrow of governments often occur when debt must be paid back to foreign creditors.

    I’m not quite sure who ends up ignorant here? you or her?

    Investment wise, it does not matter whose name is brought into this. The USA is in a financial crises from local governments (cities all over going bankrupt, and big ones on the verge of bankruptcy), states on the verge of bankruptcy, and a Federal Government that is beyond hope of digging out, I’m afraid.

    Now, ask people in Greece, Cyprus, Spain, Ireland, what it is like to have to pay back their debts. Ask the creditors of Cyprus what it was like to lose 90+% of their equity. Doesn’t that feel like slavery? That is the context (not knowing what Palin thinks) that debt is like slavery, and if one is ever in debt personally and does not have recourse to bankruptcy (for example you cannot be forgiven Credit Card debt in bankruptcy) then who are you in slavery to for that debt? And if you have ever felt the sting of current debt collection practices, you would have to wonder about the wonderful socialists state the Demos are setting up. Since I did not read Palin’s message, if she was referring only to China, then she was remiss. She should have mentioned that the Federal Reserve now owns more US treasury debt than Japan and China together. She would have also been remiss (assuming she was trying to be financially right, and not appealing to emotions), in pointing out the Federal Government owes Social Security for all the money it borrows.

    Will China hurt the USA? Well they are not your friend, and they have their own agenda for controlling the world. I wrote about China’s ability to deliver nuclear war from submarines – which was just announced. Now, think about Cinco de Mayo day. The French had turned their military on Mexico to what? Collect their loans. Your argument that China would never do that is bogus. If they thought (unlike you do) that it was to their benefit, they would dump debt, and have a good excuse to use their military to collect it. That is a completely different scenario than when Japan was our major creditor – as we controlled Japan after WWII and would not let her build a military to rival ours.

    In other words, debt is dangerous. Debt does have to be repaid. And when it must be repaid, it requires suffering. And since much of the debt to foreigners is long term, the suffering will likely be to our children for a very very long time (not us). There is no easy landing. You should keep your own politics to yourself and not attack someone you disagree with. The middleclass is suffering out here. The small business owner (myself) is suffering, as the laws of Socialists destroy the small business and enhance the “big” business. There is no morality in any socialists program that has ever been. That is a bogus argument, as socialism cannot defend the right of the individual, because there is only one right – the group who supports the elitists in power.

    So as you despise conservative politicians, I also despise those who attack because they disagree. I promise I will not read your stuff again. For you could have made your point without attacking anyone in specific.

    I unsubscribed to all Uncommon Wisdom. I hope your bosses agree with your approach to politico attacks.

  14. How on earth do you think Africa (and many others) are being kept in the dark ages?? In case you haven’t notice, the US has already sent to China all its gold as collateral for its sickening debt. Unless you can show a single valiant ounce is left in Fort Knox… Sure they will pay their current debt in US$, but well before the last installment, this currency, its economy and government will be brought to its knees in total devastation and there’s nothing China or any one can do about it. Then the US will need to borrow to reconstruct itself, and trust me, they will be borrowing yuans, rubles or gold, and you will understand that a debtor is always a slave.

  15. This edition really takes the cake.
    You are wrong, in interpreting Palin’s remark.
    Your rebuttal, simplistic, made assuming, we all that dumb to not see the fallacy of your remarks.
    When the dollar does break, it will dwarf anything seen before.
    Argentina, Russia, none of them will compare.
    In the meantime , our birthright is being sold to the highest bidder, for the basest of reasons.
    Bernanke, now Yellen, and the leaders who appointed them, and minions who follow along blindly, have done more harm to this country than any des[pot could dream of.

    John R Skuce Jr
    Mt Olive NC

    .

  16. How on earth do you believe Africa (and many others) is being kept in the dark ages?? The US has already sent all its gold to China as collateral for its sickening debt and it’s an ongoing process. Unless you can show a single ounce is left in Fort Knox… Sure it will be paying off its current debt in US$, but well before their last payment, that currency, its economy and government will be brought to their knees in total devastation. And when the time will come to reconstruct the country, the US will need to borrow even more, and this time, trust me, it will be in Yuans. rubles or gold. Then you might understand why a debtor is always a slave!

  17. You make a valid point that our politics and our investing must be kept separate. Then you proceed not to tell us what we need to know, but to trash Sara Palin and the conservative movement! I will be discontinuing my reading of your service because I get just as much from independent minded advisors who can make their points without trashing anyone or name calling.
    Ken Heise & family.

  18. “Dr. Yellen has a firm grasp on economic reality. She will promote the policy changes needed to create new wealth and prosperity.” Where, in the Wall Street elite??? You sir, have demonstrated a galactic disregard towards middle class and policies that have allowed our once world power of manufacturing to be moved offshore and relegated to the scrap heap of antiquity. China is out for China and the US political elite have slowly trading our sovereignty for Chinese investment. The Communist Chinese government is the enemy of free enterprise and fair trade. You have been instrumental in one decision. Unsubscribing….

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