Thursday, January 20, 2011
Don't mess with my dogma! My conversation with KT Mcfarland
KT Mcfarland was deputy assistant secretary of defense for public affairs at the Pentagon from 1982 to 1985 under President Ronald and a key member of Henry Kissinger's National Security Council staff. Not a bad resume.
I ran into her at Fox yesterday and I asked her what she was going to talk about.
She said, "China." Then she offered that, "We're really in a pickle with China."
I asked her why and she said because our options are very limited.
Then I said, "That's because we give them the leverage over us."
To which she responded, "Well, we have no choice, they are our banker."
I asked her what she meant by that and she repeated, "They are our banker," then added, "They own $3 trillion of Treasuries and we need them to buy a lot more."
At this point I couldn't sit still. You know me.
"They're our banker?" I asked incredulously. "What are they lending us? Dollars?"
She actually responded by saying, "Yes."
Then I asked her why any nation would need to borrow its own currency?
I didn't get a response, but I did get a cold stare, like the look that a child would get from an adult for being insubordinate. As if to say, "Watch it, or you'll be in even bigger trouble next time.
"China sells us stuff and they get dollars. Then they put those dollars into Treasuries, which are just like a savings account."
Another cold stare.
Then I said, "It's like buying a bank CD. Are you financing the bank when you buy a CD? No. If anything the bank is making money off of you."
Silence. She turned to finish reading the Wall Street Journal.
That's it. Another example of policymaking elites totally undesirous of the truth if it conflicts with their dogma.
Aint this fun!