To Save Our Economy, Ditch Taiwan

WITH a single bold act, President Obama could correct the country’s course, help assure his re-election, and preserve our children’s future.

He needs to redefine America’s mindset about national security away from the old defense mentality that American power derives predominantly from our military might, rather than from the strength, agility and competitiveness of our economy. He should make it clear that today American jobs and wealth matter more than military prowess.

As Adm. Mike Mullen, then chairman of the Joint Chiefs of Staff, declared last year, “The most significant threat to our national security is our debt.”

There are dozens of initiatives President Obama could undertake to strengthen our economic security. Here is one: He should enter into closed-door negotiations with Chinese leaders to write off the $1.14 trillion of American debt currently held by China in exchange for a deal to end American military assistance and arms sales to Taiwan and terminate the current United States-Taiwan defense arrangement by 2015.

Read more: http://www.nytimes.com/2011/11/11/opinion/to-save-our-economy-ditch-taiwan.html?_r=1

I think a better frame is: we can maintain plenty military prowess for 1/2 of what we're currently spending on defense, Endless War(tm), etc.

It's not that spending money on defense is wrong. It's just that we're currently spending way too much.

In a few more years, we'll owe them another trillion or two, assuming no changes for the better in our trade policies (unlikely). What bargaining chip do we offer them to cancel it then?

Changing trade policy to impose taxes on goods made at low wages would help our deficit more than anything.

Show them how strong we are by our willingness to sell-out a friend.