RNC directs spotlight to issue of Taiwan Move to cut defense aid feared

The Washington Times ^ | January 12, 2012 | Ralph Z. Hallow

[StopGlobalWhining]

The resolution, set to be introduced Friday at the RNC’s annual winter meeting by Oklahoma committee member Carolyn McLarty, aims to shoot down what some see as an Obama administration trial balloon in the form of a recent opinion column in the New York Times by Paul V. Kane, a Marine Corps veteran and former international security fellow at the Harvard Kennedy School of Government."

Mr. Kane called on Mr. Obama to “enter into closed-door negotiations with Chinese leaders to write off the $1.14 trillion of American debt” currently held by China. Mr. Kane said the write-off would be “in exchange for a deal to end American military assistance and arms sales to Taiwan and terminate the current United States-Taiwan defense arrangement by 2015.”

[StopGlobalWhining]

Has any GOP candidate taken a position on defending the existing treaty to defend Taiwan? Why hasn't there been any emphasis about this?

[ROTB]

That’s all they have? Who has the rest?

[Truth29]

This would give a new dimension to the phrase “blood money.”

[Darth Reardon]

American citizens are the largest holders of US debt. China is, IIRC, near the bottom of the top ten.

[StopGlobalWhining]

I guess I should have asked if this is a part of Obama’s defense cutback strategy? Abrogate the Taiwan defense treaty and eliminate a major potential flash point in the Pacific.

[StopGlobalWhining]

The Washington Times link above will take you to the full story. I’d like to see Mitt Romney asked if he would defend Taiwan under all circumstances.

[NVDave]

China is the largest foreign owner of US debt:

http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt

The Fed is the largest single owner of US Treasury debt right now.

http://www.federalreserve.gov/releases/h41/current/

[NVDave]

Japan, oil-exporting nations, the UK, etc.

See the two URL’s I posted above, the TIC will lay out all the foreign owners. The PRC and Japan are the two largest foreign holders of US Treasury debt.

Per the above posting, the largest holder is the Fed.

The more important issue for the Treasury is that China is the only nation currently able to buy US Treasury debt in such large amounts at every auction. If China wanted to hurt the US financially, all they need to do now is simply stop buying new debt. The Fed couldn’t absorb the amount of debt that the PRC buys.

[SunkenCiv]

Thanks StopGlobalWhining.