The College’s School of Business welcomed the first of many speakers in this semester’s BB&T Free Market Process series to the Wachovia Auditorium Feb. 2.

Mallory Factor’s background includes working under former president Ronald Reagan as chairman for the Federal Savings and Loan Advisory Council of the Federal Home Loan Bank. He has since been a major campaign fundraiser for several Republican candidates, including former president George W. Bush.

Factor began the lecture by pointing out several startling facts about the nation’s debt, which currently stands at $12.3 trillion, roughly $40,000 dollars per U.S. citizen. The United States owes China $4.7 trillion. China has recently developed a booming economy, and they have had the necessary resources to lend the United States money in such times of trouble. Factor claims that this will lead to the United States becoming victim to what he calls “economic statecraft,” which would mean that China could influence U.S. politics and economics.

Most European countries have an enormous amount of debt as well, and Factor asserts that this nonchalant attitude that most Americans have taken toward China’s lending will result in a decreased standard of living and an overall change in the fabric of America.

“China is slowly and quietly supplanting the United States as the richest country on Earth,” Factor said. If the United States’ status as the wealthiest nation on Earth is compromised, it could mean that the country would be at the hands of its creditors and have to agree to stark terms when it comes to political and economic dealings with other countries.

According to Factor, the United States and European countries have already begun deferring to China because of its extreme lending. In the ongoing dispute between Tibet and China, England had supported Tibet’s right to be its own country until recently when England switched sides to support China’s claim over Tibet.

Factor finished his talk by suggesting solutions to the deficit. He admits that it would be difficult, primarily because of the United States’ government type. While China does not run on a solely democratic system, it is free to use its gross domestic product as it sees fit unless it is about to face a major uprising from its citizens. The United States, and European countries, must answer to their citizens for nearly every dime spent.

Factor said he would cut defense to 35 percent of its current funding. He said the military has only two purposes: killing and war, and that humanitarian efforts are not economically viable.

Senior Ali Greenberg, who has been interning with Factor for two years at Mallory Factor Inc., said she agrees with all Factor’s ideas.

Though there were many people who expressed interest in and liking for Factor’s ideas, there were a few in the audience who disagreed with his view on the nation’s debt.

Visitor to the College Brian Teahren said the whole talk was orienting “toward excessive blaming of the government completely, as opposed to putting some of the responsibility on the consumerism of the public.”

The next speaker to participate in the BB&T Free Market Process series will be Dr. Peter Boettke of George Mason University at 3 p.m. on Feb. 16.