Act of War - Brad Thor Page 0,49
nation’s debt was unsustainable and their spending policies were presenting lawmakers and the public with difficult choices.
“They were told that if nothing was done, entitlement spending would double, the government would have less flexibility to respond to unexpected challenges such as economic downturns or wars, and the risk of another financial crisis was being greatly increased. All of these, they were warned, would cause America’s lenders to demand super-high interest rates in order to continue financing our government’s borrowing binge.
“The CBO’s warning wasn’t top secret. It was very public. Not only were the markets listening, but so were the Chinese. They knew that it didn’t matter much who sat in the Oval Office. The United States government was a life-form committed wholly to itself. It would continue to borrow, spend, and grow. It would die of obesity before ever agreeing to be slimmed down to a manageable size.
“The previous administration used the Federal Reserve to keep interest rates artificially low so it could continue to borrow money, but the Chinese were not only wise to it, but also growing increasingly tired of this game. Apparently, they got to the point where they were no longer content to play along.”
The Secretary of State looked at Fleming and asked, “What do you mean, apparently?”
“Your predecessor said it best. ‘Our debt and deficits are unsustainable and will cause us to not only lose our influence, but prevent us from making the right decisions.’ He was right and that is exactly what has happened.
“China stopped listening to us about their human rights violations, international partners no longer wanted to line up with us to take on threats like Syria, Iran, or North Korea, and country after country, including China, has been bucking to dump the dollar as the world’s reserve currency.
“In short, much of the world no longer respects us, China in particular. In order to continue to loan us money, they began to demand a new premium, one more reflective of the risk they were taking.”
“What kind of premium?”
“They wanted their loans backed up with more than just the full faith and credit of the United States government. They wanted the loans to be collateralized.”
“With what?”
Fleming went rapidly through a series of slides. “Everything. Oil and gas leases in Alaska and the Gulf of Mexico. Mining rights throughout the Rockies and the Mountain West. Timber. Farmland. Water rights. Shipping ports. National parks. For every loan we rolled over or issued anew, the Chinese demanded a concession.”
“And the last administration gave in to this?”
Fleming nodded.
“Without congressional approval?” the Secretary of State, a former senator, asked incredulously.
“The bigger the government, the less the respect for the rule of law.”
The Secretary of Defense jumped in to chastise the Secretary of State and former senator. “All that administration did was end-run Congress. The warning signs were there and plenty of people were screaming for you and your colleagues to do something. You and your pals, though, didn’t want to ‘alienate voters.’ You all said, ‘We’ll fix it later’; that it had to begin at the ballot box. Well, here we are. Thanks a lot.”
Normally, the President would have short-circuited this kind of pissing match, but all of it needed to be said. The Secretary of State was a good peacemaker, but peacemaking had its place and its price. Turning a blind eye to abuses of office when he was a senator wasn’t making peace. It was capitulation.
“How is it even possible that this is the first time I am hearing about this?” the Secretary of State demanded.
Fleming looked at the FBI Director, who had been assisting him over the past week. Pulling a file from the folder in front of him, the FBI Director said, “There had been a whistleblower at Treasury. She was apparently ready to name names and went to a congresswoman she thought would be sympathetic. The congresswoman was sympathetic all right, to the last administration. She ended up ratting her out in exchange for a bunch of special items she wanted the President to approve through executive order.
“The President’s people then went after the whistleblower with a vengeance. It’s not hyperbole to say they turned her life into a living hell. She was not a perfect woman by any means and they used everything they could against her. She has a handicapped son and they pulled the trump card. They threatened her pension and medical benefits. She folded on the spot.”
The Secretary of State was irate. “I want to know who the congresswoman