I’m not upset with China. I’m welcoming them into the glory of capitalism.

Yesterday, I noted this story:

A Chinese ratings house has accused the United States of defaulting on its massive debt, state media said Friday, a day after Beijing urged Washington to put its fiscal house in order.

My entirely rational and measured reaction:

…take your stupid undervalued money and put it someplace else, you don’t like how we’re handling things over here.

But in the comments, Mark wonders:

I don’t understand why troglopundit is so upset with the Chinese credit agency.

No no no: don’t take it that way. I’m not upset. This is how things are supposed to be.

Okay, I do tend to reflexively puff up like Robin Williams’ character in that stupid cartoon with the fairies and the giant tree harvester whenever some foreigner gets all critical of the U.S.

I mean, seriously. China? We’re supposed to take our economic cues from China now?

So my reaction was, basically: fine. Take your money someplace else. Like a restauranteur faced with a chronically belligerent customer: go someplace else.

Of course, the restauranteur will try to make his customer happy, first. This is the free market. We have a product, you want a product. If you don’t like our product, you’ll try to find a substitute elsewhere. We, providing the product, would rather you didn’t, so we try to make sure you do like our product.

Still, that’s my advice to China. If our product isn’t worth it to you, find another one.

Problem being, there may not be any substitute for U.S. treasuries. We’re the Wal-Mart of international finance. We’re like Microsoft and U.S. Steel and the British East India Company all rolled into one. There just isn’t another game in town, and there won’t be any anti-trust lawsuit to change that.

Not that anyone wants to change it. They may kvetch, but they like the security of investing in the U.S.

Which isn’t to say China should continue to do so. If they’re really unhappy with us, they should bolt for some other product. We don’t want them to, because we want to maintain our market share. But. We believe in the free market, see, and so: if we’re not providing our customers with the quality they want, we fully and completely support their absolute right to take their business elsewhere. Seeya.

Hey, China, isn’t capitalism awesome?

(Posted by Lance Burri, a.k.a. The TrogloPundit)

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