So China is making waves by saying that they are worried about their investments in US Treasury bonds.  Make no mistake; China is threatening the United States.  What they are really saying is that the US better make sure that China’s assets don’t erode or else they will stop financing our debt.

This is exactly what I was talking about in my original “Where did the government bond go?”.  If we continue to allow foreign entities to hold most of our debt we are at their mercy when it comes to making some fiscal and monetary policy decisions.

While I still believe that the US Government Bond is the safest investment in the history of the world there is simply not enough of this held by Americans.  If Americans held more of this debt we could control our own destiny better because we would not be so beholden to foreign entities, which probably don’t like us in the first place.

We would also reap the benefits of holding the debt because we would receive the interest payments from the debt and we could by more of the debt or invest it in the economy to grow without foreign intervention.

John F Kennedy had the phrase “Ask not what your country can do for you but what you can do for your country”.  I urge every American to buy Government bonds on a regular basis.  Think of it as serving your country.  I know I do.