Obama Wants $1 TRILLION Debt Ceiling Hike -- But We Can Get That From CHINA Right Now... No Debt Limit Increase Needed!

YOU READ THAT RIGHT -- China owes the United States nearly ONE TRILLION DOLLARS from bonds they sold to US decades ago!

Everyone always goes on about how much WE owe to CHINA -- but they've conveniently forgotten the fact that China owes US so much money!

THAT MEANS WE DO NOT NEED TO RAISE THE DEBT CEILING -- WE JUST NEED TO WITHHOLD OUR DEBT PAYMENTS TO CHINA!

CLICK HERE to send Blast Faxes to EVERY SINGLE U.S. SENATOR AND REPRESENTATIVE, to tell Congress to DEMAND that the GAO give a FULL accounting of the debt CHINA owes to AMERICA -- And to DEMAND that we WITHHOLD the interest owed China as an offset to the $750 billion THEY owe American citizens!

You probably haven't heard about the fact that China owes billions to US -- or the fact that they have refused to pay what they owe.

IT'S TRUE. As Fox News has reported:

Many decades ago, China sold sovereign bonds worldwide to investors in many nations. They sold tens of thousands of these bonds on U.S. soil to American citizens on the recommendation of our government, indicating it was a solid investment. Over the last sixty years, China has refused to pay to these bondholders either the principal or interest on these full faith and credit sovereign bonds.

China argues that because these bonds were issued by a former administration or regime, the Republic of China, today's China should not have to honor them. Does this mean that every time the United States changes presidents, we no longer have to honor the interest and principal payments to all who purchased U.S. Treasuries during the previous Administration? Can an incoming president simply refuse to honor any contracts or treaties approved by his or her predecessor?

OF COURSE NOT. In fact, China's position is in direct violation of the Successor Government Doctrine of International Law.

Under international law as it has been understood for centuries, successor governments, no matter the circumstances of the establishment of a new government, whether by revolution or civil war, must pay the sovereign debt incurred by its predecessor. But currently, the People's Republic of China owes a debt of over $750 billion to American citizens who are holding these full faith and credit sovereign bonds (many of them denominated in gold) sold to them by the Republic of China. Worldwide, the debt China owes to all bondholders is estimated to be several trillion dollars.

The debt owed to the American people should be paid. The U.S. government could dollar for dollar offset bond interest we owe China with interest, principal and penalties China owes us.

That would be $750 billion. Split 10 to 1, the U.S. taxpayer saves $700 billion in debt payments and the bond holders could receive the balance. As part of the deal, each state could receive badly needed investment funds as well.

That's money that America could use -- INSTEAD OF RAISING THE DEBT LIMIT AGAIN AND PUTTING US IN MORE DEBT!

Let's make this happen -- QUICKLY!

CLICK HERE to send Blast Faxes to EVERY SINGLE U.S. SENATOR AND REPRESENTATIVE, to tell Congress to DEMAND that the GAO give a FULL accounting of the debt CHINA owes to AMERICA -- And to DEMAND that we WITHHOLD the interest owed China as an offset to the $750 billion THEY owe American citizens!

It's not like there isn't precedent for China actually paying back the money they owe from past Chinese government debt. In 1987, threatened with being kept out of the British financial markets, China acknowledged the debt it owed from the sale of these exact same bonds to British investors. As part of the Great Britain-PRC agreement on Hong Kong, the PRC agreed to pay its debt to British citizens who owned these same bonds. By paying the British bondholders -- but no other bond owners worldwide, including U.S. bondholders -- China "selectively defaulted" on these bonds.

Currently, the People's Republic of China owes a debt of over $750 billion to American citizens who are holding full faith and credit sovereign bonds sold to them by the Republic of China. Worldwide, the debt China owes to all bondholders is estimated to be several trillion dollars. As reported by the American Bondholders Foundation, these facts are not in dispute by the U.S. Treasury Department, the White House, Congress or the State Department. In fact, an official at the Treasury commented that, "Yes, the bonds are real and yes China owes it and should pay it; however, good luck collecting it as China doesn't really want to pay it".

WHO CARES whether China wants to pay it? WE SHOULD WITHHOLD OUR PAYMENTS TO THEM if they don't!

Exactly what U.S. or international loophole, guideline, or precedent does China hide behind to keep from having to pay their debt to these bondholders? The answer is simple: None! They simply choose not to pay and no commercial, regulatory or government entity is holding their feet to the fire! China simply ignores the issue -- and our own government would rather not have to deal with it and risk "angering the dragon".

Yet China continues to enjoy open and unfettered access to U.S. capital markets, it has excessive cash reserves and a strong credit rating which the credit rating agencies (Standard & Poor's, Moody's and Fitch) are continually upgrading -- even though China's credit rating status SHOULD be "Selective Default" according to the rating criteria established by the credit rating agencies!

THIS IS OUTRAGEOUS! Congress needs to FORCE the Government Accounting Office to add up the total that China owes American citizens -- and then they need to stop paying money to China instead of increasing our own debt ceiling!

CLICK HERE to send Blast Faxes to EVERY SINGLE U.S. SENATOR AND REPRESENTATIVE, to tell Congress to DEMAND that the GAO give a FULL accounting of the debt CHINA owes to AMERICA -- And to DEMAND that we WITHHOLD the interest owed China as an offset to the $750 billion THEY owe American citizens!

Look, it's no secret that trade between the United States and China is severely unbalanced. The PRC holds trillions of U.S. Treasury notes and bonds. The U.S. trade figures in 2010 showed a $273 billion trade deficit with the PRC. The difference between what we purchase from them and what they purchase from us is used by China to purchase more and more of our U.S. Treasuries. Then, of course, China receives tens of billions of dollars per year in interest payments from the Treasuries they purchase with profits from the U.S.-China trade imbalance.

Yet, in July of 2010 and again in November 2010, Dagong Global Credit, a leading Chinese Credit rating agency, downgraded the sovereign credit rating of the United States -- even though the U.S. has never defaulted on its debts. Not only has the U.S. never defaulted, it has never even offered to pay at a discounted rate.

The U.S. pays its debts in full, and yet China downgraded our credit rating due to assessed "potential" risk -- while its leaders announced to the world that the U.S. needs to be "financially responsible" and "economically sound." The irony is that being repaid by China is not a "potential risk"; it is today's reality for thousands of Americans to whom China refuses to pay what is legally and morally owed!

One U.S. Treasury official, when asked about the U.S. government's holdings of these bonds, confirmed that they had purchased a significant portion of the 1938, 1939 and 1940 U.S. dollar-denominated bonds, and they are still holding them. He affirmed that they did NOT shred them, destroy them, or in any way get rid of them; in fact, he replied, "Oh God no; we're saving them for a rainy day!"

These government officials don't seem to realize: it is pouring rain outside -- in fact, it's flooding!

NOW IS THE TIME to take advantage of the fact that CHINA OWES US MONEY! NO MORE DEBT HIKES!

CLICK HERE to send Blast Faxes to EVERY SINGLE U.S. SENATOR AND REPRESENTATIVE, to tell Congress to DEMAND that the GAO give a FULL accounting of the debt CHINA owes to AMERICA -- And to DEMAND that we WITHHOLD the interest owed China as an offset to the $750 billion THEY owe American citizens!

As Michael Auslin of the American Enterprise Institute wrote in the National Review, "Beijing's plan since the early 1980s has been clear: Get strong. But in its success, China has developed the idea that the world's rules don't apply to it." And of course, when called to account for its behavior, it throws what Peter Huessy, President of GeoStrategic Analysis, calls "geostrategic temper tantrums."

You don't coddle children who throw tantrums; you make them do what's right. That's what we need to do NOW -- and that's why we've made it EASY to make your voice heard LOUD AND CLEAR on this issue -- please take action NOW!

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P.S. Ironically -- and hypocritically -- with the fall of Saddam Hussein's government in Iraq, the PRC insisted at the United Nations that any successor government in Iraq must be held to pay its debts -- including debts to China. The U.N. approved.

That's what needs to happen here. We need to add up exactly what China owes America, and refuse to pay them what they say we owe them until they pay US back. PLEASE, take action RIGHT AWAY to DEMAND that Congress TAKE ACTION on this issue -- NOW! Thank you!

CLICK HERE to send Blast Faxes to EVERY SINGLE U.S. SENATOR AND REPRESENTATIVE, to tell Congress to DEMAND that the GAO give a FULL accounting of the debt CHINA owes to AMERICA -- And to DEMAND that we WITHHOLD the interest owed China as an offset to the $750 billion THEY owe American citizens!

You can also CLICK HERE to send a FREE message directly to YOUR U.S. Representative and Senators!

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