Biden Takes Obama Jobs Tour to China

August 16, 2011

Desperate Democrats Beg Forgiveness While Ignoring Job-Destroying Debt

Vice President Biden will take President Obama’s jobs tour to China on Tuesday, begging forgiveness from America’s Chinese creditors who are nervous about Washington’s big spending ways.
This trip might be especially embarrassing for Biden since Democrats and the Obama administration have ignored warnings from the Chinese to get spending under control. The Chinese responded to the S&P downgrade by blasting Washington’s “addiction to debts” and urging Washington to “live within its means.”
The outsized U.S. debt continues to weigh down the U.S. economy, and Democrats are making it worse. Economic research suggests that high levels of public debt stifle economic growth, and the U.S. is officially in the danger zone. American workers and families are already suffering the effects of this job-destroying debt.

BACKGROUND

Vice President Biden will take President Obama’s jobs tour to China on Tuesday, begging forgiveness from America’s Chinese creditors who are nervous about Washington’s big spending ways:

“Concerns about the U.S. economy and the country’s ability to manage its debt and deficits are looming over Vice President Joe Biden’s trip to China this week.

“But Obama administration officials are downplaying any suggestions that Biden will have to reassure the Chinese about America’s creditworthiness. Aides say Biden will tell Chinese leaders that the U.S. has the capacity and commitment to tackle its fiscal challenges.” (“U.S. Economic Woes, Debt Debate Loom Over VP Biden’s Trip to China,” The Washington Post, 8/15/2011)

This trip might be especially embarrassing for Biden since Democrats and the Obama administration have ignored warnings from the Chinese to get spending under control. The Chinese responded to the S&P downgrade by blasting Washington’s “addiction to debts” and urging Washington to “live within its means”:

CHINA ACCUSES WASHINGTON OF “ADDICTION TO DEBTS,” SAYS IT MUST LEARN TO “LIVE WITHIN ITS MEANS”: “China, the largest foreign holder of United States debt, said Saturday that Washington needed to ‘cure its addiction to debts’ and “live within its means,” just hours after the rating agency Standard & Poor’s downgraded America’s long-term debt.” (David Barboza, “China Tells U.S. It Must ‘Cure Its Addiction to Debt,'” The New York Times, 8/6/2011)

AMERICA’S “STANDING IN THE WORLD IS SLIDING,” CHINA “NOW VIEWS ITSELF AS ASCENDANT.” “The commentary serves as a sharp illustration of how the United States’ standing in the world is sliding and how China now views itself as ascendant.” (David Barboza, “China Tells U.S. It Must ‘Cure Its Addiction to Debt,'” The New York Times, 8/6/2011)

The outsized U.S. debt continues to weigh down the U.S. economy, and Democrats are making it worse. Economic research suggests that high levels of public debt stifle economic growth, and the U.S. is officially in the danger zone. American workers and families are already suffering the effects of this job-destroying debt:

DEBT NOW GREATER THAN 100% OF GDP; TRANSLATION: AMERICA OWES MORE THAN THE SIZE OF THE ECONOMY. “US debt shot up $238 billion to reach 100 percent of gross domestic project after the government’s debt ceiling was lifted, Treasury figures showed Wednesday. …

“The new borrowing took total public debt to $14.58 trillion, over end-2010 GDP of $14.53 trillion, and putting it in a league with highly indebted countries like Italy and Belgium.” (“U.S. Borrowing Tops 100% of GDP: Treasury,” Agence France Press, 8/3/20111)

MAJOR ECONOMIC STUDY LINKED DEBT OVER 90% OF GDP TO SLOWER ECONOMIC GROWTH: “The sharp run-up in public sector debt will likely prove one of the most enduring legacies of the 2007-2009 financial crises in the United States and elsewhere… Our main finding is that across both advanced countries and emerging markets, high debt/GDP levels (90 percent and above) are associated with notably lower growth outcomes… Seldom do countries simply ‘grow’ their way out of deep debt.” (Carmen M. Reinhart and Kenneth S. Rogoff, “Growth in a Time of Debt,” American Economic Review Papers and Proceedings, 12/31/2009)

MOODY’S DOWNGRADES ECONOMIC GROWTH OUTLOOK: “Moody’s Investors Services said its near-term outlook for the U.S. economy has fallen significantly in the past month in the wake of the debate over the U.S. debt ceiling and the downgrade by rival credit-rating company Standard & Poor’s of the nation’s credit ratings. Moody’s now expects real gross domestic product to increase at an annualized rate of about 2% in the second half of this year and just over 3% next year, compared with its estimate a month ago for growth of 3.5% for the second half of this year and through 2012.” (Tess Stynes, “Moody’s Lowers Economic Growth Outlook,” The Wall Street Journal, 8/15/2011)

TRADE DEFICIT WIDENS, CHINA “GAIN[S] GROUND ON AMERICAN INDUSTRY:“A decline in exports caused the monthly U.S. trade deficit to widen in June by 4.4 percent to $53.1 billion and China gained further ground on American industry, according to a Commerce Department report Thursday. … The goods deficit with China increased to $26.7 billion in June, a cause for concern for the Alliance for American Manufacturing as China continues to gain ground on American industry.” (Josh Boak, “Trade Deficit Widens as China Gains,” Politico, 8/11/2011)

NEW YORK MANUFACTURING INDEX SHRINKS FOR THIRD STRAIGHT MONTH:“New York manufacturing activity in August is contracting for the third consecutive month, according to the Federal Reserve Bank of New York‘s Empire State Manufacturing Survey released Monday.” (Kathleen Madigan, “New York-Area Manufacturing Contraction Continues,” The Wall Street Journal, 8/15/2011)

ONLY 9% BELIEVE ECONOMY IS RECOVERING: (CNN/ORC Poll, 8/8/2011)

“ECONOMIC PESSIMISM SKYROCKETS”: 60% THINK ECONOMY IS IN DOWNTURN: (Paul Steinhauser, “CNN Poll: Economic Pessimism Skyrockets,” CNN, 8/8/2011)

73% SAY ECONOMY ON WRONG TRACK: (Xavier Briand, “Most Americans say U.S. on wrong track: poll,” Reuters, 8/10/2011)

47% BELIEVE “WORST IS YET TO COME” FOR ECONOMY: (Xavier Briand, “Most Americans Say U.S. on Wrong Track: Poll,” Reuters, 8/10/2011)