Given the propensity of the Obama administration to cater to populist, buy-American types, one of the only reasons I sleep well at night when it comes to foreign affairs and trade is that Hillary Clinton is running the State Department. When it comes to trade, Hillary is a Nafta-Democrat in the mold of her husband -- a good thing given the protectionist, union-mongering rhetoric of her boss and the rest of the Obama administration. But I'm not alone in lavishing praise on Hilary. One of our most important trading partners, China, also had some good things to say about her of late during the Secretary’s recent visit to China. To wit, a recent Bloomberg dispatch quotes Chinese State Councilor Dai Bingguo as remarking that Hillary looked "younger and more beautiful" than she appears on television.
Buttering up aside, Hillary's trade mission attempted to convince the Chinese to "continue buying U.S. Treasury bonds" despite the "buy American" provisions of the latest stimulus package. The hypocrisy of this argument aside, if you believe US debt is a good investment given the free spending that we're about to undertake under Obama's proposed $1.75 trillion 2009 deficit -- not to mention a Federal funds rate set at near record low levels -- I've got a couple automotive companies I'd also like you to pump some cash into. It's risk free. Trust me. And don't worry about losing your investment from inflation. We've got that covered, too. It's called welfare and entitlement spending -- which is where much of the "stimulus" is going. And you're guaranteed a return. After all, such spending is indexed to the cost of living and remains a guaranteed mandate. Only problem is the Chinese government does not qualify.