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On China-Held Debt, CAGW Has Many Allies

WASHINGTON--(BUSINESS WIRE)-- Today, Citizens Against Government Waste (CAGW) issued a statement in response to the Pew Charitable Trust’s report that nearly 8 in 10 Americans say the amount of American debt held by China is worrying. The report, which studied a wide array of issues that affect the United States and China, including job losses, military power, and the environment, found that 78 percent of Americans consider the large amount of American debt held by China a “Very serious problem for the U.S.”

“This report further confirms what we have been trumpeting for years, which is that the national debt has reached a disturbing level,” said CAGW President Tom Schatz. “It threatens the very survival of our country, to say nothing of its continued prosperity. That reality is what spurred CAGW to release its jarring ‘Chinese Professor’ ad in 2010, and again in 2011, in an attempt to create a consensus that spending and debt, if left unchecked, have very real consequences.”

“Raising taxes will not solve this problem,” added Schatz. “There must be real and substantial spending cuts and pro-growth policies enacted. President Obama repeatedly made the case that it was necessary for him to ‘temporarily borrow even more’ at the beginning of his term in an effort to boost economic activity, but his unprecedented spending increase of $836 billion in his first two years has become permanent while economic activity has stagnated. The White House’s fiscal year (FY) 2013 budget predicts that federal spending will pass $4 trillion in FY 2015, at which point the federal budget will have doubled since 2002. The President routinely cites budget ‘cuts’ as any spending levels below the massively inflated increases of FY 2009.

“The American people know what is at stake. Credit rating agencies have downgraded the federal government’s credit rating; 10 ex-chairs of the President’s Council of Economic Advisers have described the debt as ‘a severe threat that calls for serious and prompt attention;’ and then-Chairman of the Joint Chiefs of Staff Mike Mullen referred to the national debt as the ‘single-biggest threat to our national security.’ Yet there has been little action by elected officials with the power to do so to address the problem. That must change, and taxpayers will be vigilant about holding accountable those who continue to jeopardize the fiscal health of our nation,” Schatz concluded.

Citizens Against Government Waste is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.

CAGW
Leslie K. Paige, 202-467-5334
or
Luke Gelber, 202-467-5318

Source: Citizens Against Government Waste (CAGW)