Coozer Prophesy: The China Syndrome.

Many Americans don't know this, but the US is bankrolled in large part by China and we are mind-bogglingly indebted to them. Factor in their growing middle class and consumer base and their massive industries and manufacturing power (while we have none), and it becomes clear why our politicians can't say the word "Tibet" or talk about human rights without begging for forgiveness soon after.

Considering our economic vulnerability, China's really got the upper hand on us. They could cripple us by cashing in their loans, or simply by not keeping the money transfusion going. They could ask for anything from us and we will genuflect. They are the sole superpower in the world and our sugar daddy.

Let's see what happens when they no longer think we can make good on their loans...

From AP News:

BEIJING (AP) - China's premier expressed concern Friday about its massive holdings of Treasuries and other U.S. debt, appealing to Washington to safeguard their value, and said Beijing is ready to expand its stimulus if the economy worsens.

Premier Wen Jiabao noted that Beijing is the biggest foreign creditor to the United States and called on Washington to see that its response to the global slowdown does not damage the value of Chinese holdings.

"We have made a huge amount of loans to the United States. Of course we are concerned about the safety of our assets. To be honest, I'm a little bit worried," Wen said at a news conference following the closing of China's annual legislative session. "I would like to call on the United States to honor its words, stay a credible nation and ensure the safety of Chinese assets."

Wen's comments foreshadowed possible appeals to President Barack Obama, who will meet with Chinese President Hu Jintao at a London summit of leaders of the G-20 group of major economies on April 2 to discuss the global financial crisis.

Analysts estimate that nearly half of China's $2 trillion in currency reserves are in U.S. Treasuries and notes issued by other government-affiliated agencies.

Washington is counting on China to continue buying Treasuries to fund its $787 billion stimulus package. Last month, visiting Secretary of State Hillary Rodham Clinton sought to reassure Beijing that government debt would remain a reliable investment.

"They are worried about forever-rising deficits, which may devalue Treasuries by pushing interest rates higher," said JP Morgan economist Frank Gong. "Inside China there has been a lot of debate about whether they should continue to buy Treasuries."