While we were all watching Greece beg for money in Europe, a bunch of things were happening last week in China that were at least as noteworthy for our country.
First, a couple of Chinese generals suggested that it would be a good idea if their country dumped some US bonds to teach America a lesson for continuing to sell armaments to Taiwan.
Then Zhu Weiqun, a Communist Party leader for China’s Tibetan affairs, said that it would be wise if President Obama didn’t meet with the Dalai Lama, the religious leader who Beijing hates.
Zhu said such a meeting would “seriously undermine the political foundation of Sino-US relations” and “threaten trust and cooperation.”
A White House spokesman responded by saying “nah, nah, nah, nah, nah” the president still plans to meet with the Dalai Lama.
China, you probably already know, has lent a lot of money to America. Because of massive trade imbalances, Beijing now holds more than $700 billion in US government securities, as well as corporate assets, real estate and who knows what else.
If our sovereign soul were put up for sale on eBay, China would undoubtedly be the highest bidder.
And China doesn’t seem to care much about the rest of the world’s troubles either. Last Friday Beijing took another step toward making credit tight, without regard for everyone else’s desire to keep money flowing freely.
It would be very safe to say that Washington would have a tough time selling its securities right now — and funding the massive budget deficit caused by poor management of the economy and the recession — without China’s cooperation.
Washington, without a doubt, would have to pay much higher interest rates to unload its bills, bonds and notes if China, Japan OPEC and other big lenders suddenly stopped cooperating.
And if Washington needed to pay higher interest rates, borrowing costs across the board to ordinary people like you and me, our companies and even countries would all rise. And neither the Federal Reserve nor any other central bank in the world would be able to do a damned thing about it.
In fact, that thought probably crossed a few people’s minds last week when interest rates on US government securities suddenly jumped during the latest auction, which — like every auction these days — needed to raise a ton of dough.
Was a certain country from the Far East making good on its threat by boycotting the auction? Or, was something as simple as inclement weather on the East Coast of the US causing the chill felt at the latest Washington bond bonanza?
As I’ve been warning in this column for years, it just isn’t going to get any better until America stops borrowing from people that aren’t necessarily our friends. This is also, others now seem to be understand, an issue of national security.
But just because the situation is bleak and dire doesn’t mean we can’t enjoy a little (perhaps too little) black humor.
With another snowstorm supposedly on the way (the 80th of the season, no?) I’m just not in the mood to strain over thoughts any deeper than the slush outside my back door.
And I am sure you aren’t in the mood to read any polit-eco gob bledygook. So I’m going to take a different approach in this column.
Clearly China doesn’t have much of a sense of humor. So I’m going to help that country come up with threats against the US that could be fun for them and us.
Perhaps China should . . .
* Complain about the color of the White House. Pick a nice pastel — preferably in a lead-based paint — or “we’ll sell US government bonds.”
* Insist that we purchase all July 3rd fireworks from them. Oh, yeah, they will already have ordered us to move Independence Day forward one day or “we’ll sell US government bonds.”
* Agree that all its citizens will have the same human rights as Americans. But first China will demand that the rights of Americans be downgraded to include no health care, no right to demonstrate and no free press. If we don’t agree, they will — now the refrain — “sell American bonds.”
* Order Americans to study the Chinese phrases printed on the little piece of paper tucked into fortune cookies. We’ll be required to pass a written test every year or they will — you know what.
China will also dump our bonds if spaghetti isn’t referred to from now on as lo mein — as in, “I’d like a plate of lo mein bolognese” and raviolis will become won tons. What could Italy, which also finds itself in financial trouble, do to stop this cuisine coup d’etat?
I’m sure you can come up with better ideas. When you do, please mail them to the Chinese Consulate, 520 12th Avenue, New York, NY 10036. john.crudele@nypost.com

