Thursday, July 21, 2011

The China Syndrome

In theory if the U.S. defaults on its payments of interest to China, which is one of the world’s largest holder of US bonds, then China could do the kinds of things that lenders do to debtors who fall behind. In 19th-century England, those who couldn’t pay their debt went to debtors’ prison. As the chief executive of our land, President Obama could, under 19th-century English law, go to jail, or at least have his wages garnished. While bonds are not mortgages, and while the U.S. debt is not collateralized by a house or industrial or commercial property, a lien could be filed against the debtor’s home—in this case the White House. If the default continued, the lender could conceivably repossess the debtor’s collateral, i.e., the White House. With Chinese consular officials or army officers dispatched to occupy the Oval Office, who keeps the keys to the black box? Let’s say nuclear war broke out with China—part of the loan settlement could be that any Chinese official occupying the White House had authority to activate the beg red button, even if it meant unleashing a nuclear strike against his own country. Rupert Murdoch’s wife, Wendi Deng, who has been in the news lately for gallantly using skills gained as youthful volleyball player to protect her husband from a pie thrower, would be a good candidate for first lady in the event that Obama goes to jail for defaulting on U.S. debts. She originally came from Mainland China to live with an American couple, the Cherrys. Mr. Cherry divorced his wife to marry Deng, then she divorced him to marry Rupert. If Rupert’s fortunes continue to fall, she would surely divorce him, even if it meant repealing the Defense of Marriage Act to legitimize her marriage to President Bachmann.

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