The government does not create wealth. It can't happen. The government can only pick up wealth from one sector of the private economy (taxes) and move it somewhere else in the private economy (spending,) all the while losing wealth through ineptitude and inefficiency (bureaucracy.) The federal government is taxing and spending like never before. That activity is hindering the private sector economy rather than helping it. Worse, the federal government is spending more than it is taking in in taxes. To make up the difference, the Treasury Department is selling bonds to the Chinese.
From MyWayNews:
US, China have pointed questions in private
"WASHINGTON (AP) - The United States and China are striking a conciliatory tone in their public comments during economic talks, although that hasn't stopped China from posing some pointed questions behind closed doors about such issues as America's soaring budget deficit."
Put another way, the Chinese are worried that we won't be able to pay back the money they are lending to us. If they decide we are a bad risk and stop buying our debt, we are going to be screwed in ways you can't imagine.
Do you get the significance of this absurd situation? The freakin' Communist Chinese are lecturing America about economics!
Are you ready yet to fire that whole damn bunch in Washington?