Romney's Claim The US Borrowed From China

During his August 30, 2012 speech Romney said: This is when our nation is supposed to be paying down our national debt and rolling back those massive deficits. This was the hope and change that America voted for, it’s not just what we wanted, it’s not just what we expected, it’s what Americans deserved… does the America we want borrow a trillion dollars from China…”

In November 2011 the US Treasury said China owned $895.6 billion in US bonds, not trillions as Romney said. The reason the bonds were sold to China is because the Reagan’s tax cuts increased the deficit by 218%, more than doubled it and the ‘Bush tax cuts (the 2001 Economic Growth and Tax Relief Reconciliation Act and the 2003 Jobs and Economic Growth bills) reduced tax revenue by $1.35 trillion by 2012. Additionally, during the Bush era wars and other programs went unfunded and money was taken from Trust Funds such as Social Security and Medicare.

President Obama has repeatedly tried to repeal the cuts but has been continually stopped by the Republicans. On November 4, 2011 they rejected the $60 billion portion of the Jobs Act for construction which would’ve been paid for by raising taxes a lousy ½% on 300,000 people. If the Republicans weren’t so insistent on keeping the tax cuts for the rich perhaps more jobs would have been created and the government wouldn’t be spending more than it takes in. If the Republicans really want the deficit to decrease and/or don’t want money borrowed from China then they need to stop supporting tax cuts for the rich, tax credits for oil moguls, credits for those doing business overseas, and others. On August 1, 2012 Paul Ryan voted for HR 8-Extends Bush-Era Tax Cuts Through 2013.