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To: <economics@uonbi.ac.ke> Cc: <letters@nytimes.com>,
Subject: With America borrowing heavily from China, U.S. debt to China is far more "lunatic"
The Editor
The New York Times
Re: News Report : �Kenyans Fear Repeat of �Lunatic Express�,� by Kimiko de Freytas-Tamura, The New York Times International Weekly, June-24-25.
Comparing the Chinese-built Nairobi-Mombasa railway with earlier British-built railway called �Lunatic Express� because of its cost, Kimiko de Freytas-Tamura quotes Samuel Nyandemo, senior lecturer in economics at Nairobi University, saying �It�s madness,� because it has cost $4 billion. Most Kenyans are asking how can the country pay its �monstrous debt� to China?
But Prof. Nyandmo may be reminded that China is also bankrolling America�s trillion-dollar budget deficit and the United States is borrowing heavily from China to pay for its military budget and Social Security. Without borrowing heavily from China, the United States will be obliged to drastically cut its defense spending or to borrow heavily from the capital market, triggering massive interest rate hike, putting economic growth at risk. If the Kenyans worry about how to repay $4 billion debt to China, the Americans should spend sleepless nights worrying about how to repay its more than trillion-dollar debt to China. With President Donald Trump promising billions of dollars in tax cuts, the United States will never be able to repay its far �monstrous� debt to China.
There is another sad aspect of America�s debt to China. America is borrowing from China to finance its military spending and tax cut for the wealthy. Kenya is borrowing from China to improve its mass transportation system which will be beneficial in the long run.
MAHMOOD ELAHI
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