All right, Republican sheep, let’s hear how you don’t want Democrats taking over because they’ll increase taxes.

Well, somebody has to pay for this mess.!

What mess am I talking about? Okay, let me explain. Back in January, I talked about how George Bush has singlehandedly doubled our foreign debt (now over $2 trillion). The country that holds the lion share of our debt is China.

In that post, I stated the following:

Do you think they may get some say in our foreign policy? If China were to sell off all its U.S. currency, we could see an almost immediate collapse in our economy.

Well, guess what? They do get a say. Today, I read the following:

The Chinese government has hinted that it may liquidate its vast holding of US Treasury bonds, potentially triggering a crash in the dollar, if Washington imposes trade sanctions to force a yuan revaluation, The Telegraph reported.

The paper said that two Chinese officials at leading Communist Party bodies have given interviews in recent days warning, for the first time, that China may use its 1.33 bln usd of foreign reserves as a political weapon to counter pressure from the US Congress.

Xia Bin, finance chief at China’s Development Research centre, which has cabinet rank, commented last week that China’s foreign reserves should be used as a ‘bargaining chip’ in talks with the US, the report said.

He Fan, an official at the Chinese Academy of Social Sciences, went further yesterday, indicating that China had the power to set off a dollar collapse, if it chose to do so, The Telegraph said.

Right now, China may hold as much as much as $900 billion in U.S. bonds.

So, yes, we do need taxes “raised”, which means a rollback of the Bush tax cuts for the rich. Otherwise, you Republican cheerleaders, who can’t afford an economic collapse any more than the rest of us, will find yourselves victims of the same economic depression as the rest of us.

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