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Letter to the Editor, Posted: 6/9/04

U.S. deficit and borrowing impact

To the editor:

On April 13 the Treasury Department announced that the federal deficit for the first half of fiscal year 2004 totaled $299.5 billion, an approximate 20 percent increase over the first half of fiscal 2003. The shortfall means that the federal government will have to borrow even greater sums in order to keep functioning. Furthermore, interest on the national debt now totals $143.2 billion for the current six-month reporting period, a figure that must be doubled, if annualized.

A little-known consequence of this deficit/borrowing spree is that one of the chief purchasers of the U.S. bonds issued to fund this skyrocketing indebtedness is Chinaís International Trust and Investment Corp.

Thus, a banking enterprise controlled by the Communist government in Beijing is steadily gaining economic leverage over our nation. If China were to dump its U.S. holdings on the world market, the economic impact on America would be devastating.

Ralph W. Carlson
Harris


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