The public derision of Republicans' idea for a $100 gasoline rebate has focused on the desperate political pandering embodied in the proposal. But there's another view that makes it seem even worse. Consider the China angle.
With the nation already deeply in debt — and with Congress angling this week to cut taxes for affluent investors by more than $20 billion — lawmakers would need to borrow $10 billion to make the rebates happen. Since more than 80 percent of the immense borrowing of the Bush years has been from foreigners, it's safe to assume that most of the rebates would be courtesy of foreign lenders, of which China has been one of the most willing.
It’s the circle of crude: China's competition for the world's oil is pushing up prices. Congress piles on more debt to calm angry consumers with a rebate. The increased debt is a prescription for a weaker dollar, which in turn would make imports, including oil, even more expensive.
The United States' huge — and growing — foreign indebtedness and its refusal to curb its appetite for oil risk eroding its position in the world, at precisely the moment when it needs to use its leverage as the world's dominant power to manage the extraordinary repercussions that will come with China's growth. Energy prices and the effect on global warming are only the beginning. China's demand for other natural resources poses new dangers as well, as The Times's report last week on China's planned leveling of the Indonesian tropical forests attests.