$1 Trillion is Chump Change

When conservatives and Libertarians alike get exercised about the U.S. budget deficit, they often throw out a $1 trillion figure. The U.S.now has an annual budget deficit of $1 trillion. And it is true. 
But if that numbers scares you, then what does $9.5 trillion do to you? You see, $9.5 trillion is the number that really sums up just how much of a national security problem the U.S. has when it comes to the national debt. According to the U.S. government's  Bureau of the Public Debt, the U.S. this year must sell $9.5 trillion of bonds to account for the new debt the government adds to its books and to refinance the debt that is maturing. Everybody forgets about the debt that must be refinanced. 
We forget at our own peril. Think about how enormous $9.5 trillion is. Each year the federal government must conduct auctions where they find willing buyers for $9.5 trillion worth of U.S. debt.
What would happen if bond buyers suddenly started demanding higher interest rates to buy those $9.5 trillion worth of bonds? Worse, what would happen if China -- the leader of the bond buying pact -- decided to stop buying U.S. bonds for awhile? 
Worse yet, what if China decided to stop buying U.S. bonds not for financial reasons, but for geopolitical reasons? 
In a world with nuclear weapons, two superpowers will never again fight a conventional war. But that doesn't mean the world's superpowers will forever get along. Wars can be fought in many ways. The Chinese Banker is about highlighting the dangers of "financial warfare." We'll have much more on that later, but for now remember this: $9.5 trillion is a mighty big weapon pointed at the U.S. economy. 
If your curious how messy a financial war between the U.S. and China would get, read my new novel, The Chinese Banker. It is available at www.amazon.com/author/dustinhill. 


All right, it is time for our Banker News Byte, where we highlight U.S.-China financial matters that may be slipping under your radar. 
Today, what's our banker doing working with these guys? A major developing story about Chinese involvement with Iran. 
http://www.thesmokinggun.com/documents/fbi-probes-zte-iran-deal-645912