Clear Debt Now

Written by admin on June 15th, 2009

President Obama Offers Military Technology To China For Debt Relief

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It seems that the state of the U.S. economy, replete with record-breaking deficits, is certainly taking its toll on the fledgling Obama Administration. Recent reports are suggesting that the President and his staff have been considering an increase on income taxes or the addition of a VAT tax.

Across the Pacific, China has been voicing concerns about the U.S. deficit. As the large holder of U.S. Treasury bonds, the Chinese government is currently one America’s biggest trading partners. It is understandable why Beijing is wary of the dipping value of the U.S. dollar.

The fact that China’s share of U.S. treasuries not known, but is estimated to be over a trillion dollars, has many economists worried. If the country were to seek the U.S. guarantees on these bonds, there is very real possibility that an economic collapse would result that would be even more devastating than the Great Depression.

Meanwhile the Chinese has made moves to expand its defense budget, even as it continues to grow economically. Interesting to note is that the Chinese military is attempting to develop its own version of the stealth bomber but lacks he necessary technology to do so.

During the G20 Summit, President Obama spoke to Chinese Premier Hu Jintao. At this time, Mr. Hu suggested that if the U.S. provided relevant military technology, that the Chinese government would forgive some U.S. debt.

According to insiders, there is much turmoil in the Department of the Defense over Obama’s suggestion that they sell the blueprints for the B-2 Spirit stealth bomber. Secretary of Defense Robert Gates has openly opposed the President’s plan. As a result, Gates was asked to resign as Defense secretary if he does not wish to get the ball rolling.

The military technology up for sale would include the designs for the B-@ bomber, as well as radar-absorbing paints and metals for about $50 billion in debt relief.