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China demands U.S. 'live within its means' [ Not even the Commies call for more revenue AKA taxes! ]
LA Times ^ | Aug 6 2011 | By David Pierson

Posted on 08/06/2011 5:43:45 PM PDT by NoLibZone

China, the largest foreign holder of United States debt, said Saturday that Washington needed to “cure its addiction to debts” and “live within its means,” just hours after the rating agency Standard & Poor’s downgraded America’s long-term debt.

Though Beijing has few options other than to continue to buy United States Treasury bonds, Chinese officials are clearly concerned that the country’s substantial holdings of American debt, worth at least $1.1 trillion, are being devalued.

“The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone,” read the commentary, which was published in Chinese newspapers.

Beijing, which did not release any other official statement on the downgrade, called on Washington to make substantial cuts to its “gigantic military expenditure” and its “bloated social welfare” programs.

Beijing does have its own worries, like soaring inflation and housing prices and an overheating economy. Policy makers are also trying to deal with the accumulation of huge foreign exchange holdings. Trade and current account surpluses have helped China accumulate the vast foreign exchange reserves. It has invested much of those reserves in United States Treasury bonds, largely because the American market has long been considered the safest and most liquid bond market in the world.

Analysts say that China can also buy bonds in the European and Japanese markets but that those two markets are not big or liquid enough to absorb China’s fast-accumulating foreign exchange reserves.

But because China has about $3 trillion in foreign exchange reserves, there are few places big enough to invest those holdings safely outside of United States Treasuries, even though it looks as if they may lose value.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Culture/Society; Extended News; Foreign Affairs
KEYWORDS: 88011; 882011; aug82011; china; debt; rating; sprating

1 posted on 08/06/2011 5:43:51 PM PDT by NoLibZone
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To: NoLibZone
Raisng revenues will hurt even S & P said as much:

".When comparing the U.S. to sovereigns with 'AAA' long-term ratings that we view as relevant peers--Canada, France, Germany, and the U.K.--we also observe, based on our base case scenarios for each, that the trajectory of the U.S.'s net public debt is diverging from the others. Including the U.S., we estimate that these five sovereigns will have net general government debt to GDP ratios this year ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at 74%. By 2015, we project that their net public debt to GDP ratios will range between 30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at 79%.

However, in contrast with the U.S., we project that the net public debt burdens of these other sovereigns will begin to decline, either before or by 2015"

Standard & Poor's "

2 posted on 08/06/2011 5:45:06 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: NoLibZone

Commence the trade war.

Opening volley: 100% import tariffs.

Stop messing around. America first.


3 posted on 08/06/2011 5:45:49 PM PDT by Cringing Negativism Network (We are not tea partiers ... we are good tea partiers. Life-long tea partiers)
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To: NoLibZone

4 posted on 08/06/2011 5:52:14 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: NoLibZone
Beijing, which did not release any other official statement on the downgrade, called on Washington to make substantial cuts to its “gigantic military expenditure”

Sure right away. Obama is well underway in this endeavor, he's got you covered. The humiliation that this administration has brought upon the people of America makes my stomach churn.

5 posted on 08/06/2011 5:53:09 PM PDT by He Rides A White Horse (((((unite)))))
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To: NoLibZone

Sure just put people to work making that crap, the Chinese send over here,That Should about do it!


6 posted on 08/06/2011 5:53:09 PM PDT by Cheetahcat ( November 4 2008 ,A date that will live in Infamy.)
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To: NoLibZone

And “investments” in education and infrastructure mean more spending.


7 posted on 08/06/2011 5:55:33 PM PDT by charlie72
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To: NoLibZone

The truth never changes. The borrower is always the slave of the lender.


8 posted on 08/06/2011 5:57:06 PM PDT by Paperdoll (NO MORE BUSHS!)
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To: NoLibZone

Since they are commie do you think this may finally get the libs to listen?


9 posted on 08/06/2011 5:58:36 PM PDT by GrandJediMasterYoda (Mark Halperin - Learned the hard way what happens when you speak the truth on PMSNBC.)
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To: Cheetahcat

I just checked over at DU.

What I found over there, is that the left is just as wimpy about doing something real about trade.

If not now, WHEN?

A good old-fashioned trade war is EXACTLY what will be good for American jobs.

So why is everyone afraid to say so?

Why are both parties silent on such an obvious response?

Why do you suppose, Trump was finding such response to his momentary campaign?

Because he say the Emperor is not wearing clothes.

What are we waiting for?


10 posted on 08/06/2011 5:58:47 PM PDT by Cringing Negativism Network (We are not tea partiers ... we are good tea partiers. Life-long tea partiers)
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To: Paperdoll

You’ve got that right...how many $billion a day are we paying the Federal Reserve?


11 posted on 08/06/2011 6:00:30 PM PDT by RowdyFFC
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“said”


12 posted on 08/06/2011 6:00:33 PM PDT by Cringing Negativism Network (We are not tea partiers ... we are good tea partiers. Life-long tea partiers)
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To: NoLibZone
8-8-11

What's happening next Monday?

13 posted on 08/06/2011 6:03:34 PM PDT by Gena Bukin
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To: Cheetahcat

You know what would help us China. We should take our manufacturing out of your country and bring it back to the US!!


14 posted on 08/06/2011 6:08:06 PM PDT by doc
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To: Cringing Negativism Network

I bet at Du et all their lament is that we don’t raise taxes.

Even the Chicoms say that’s not the answer.


15 posted on 08/06/2011 6:09:06 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: doc

We really need to stop speaking of that rhetorically.

And take concrete steps to do so.

Stop messing around. America first.


16 posted on 08/06/2011 6:09:16 PM PDT by Cringing Negativism Network (We are not tea partiers ... we are good tea partiers. Life-long tea partiers)
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To: NoLibZone

“Stop building up your military, and cut welfare checks so the cities explode” sounds like sound advice from the only real competition America’s got.


17 posted on 08/06/2011 6:09:48 PM PDT by DBrow
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To: NoLibZone

Tariffs are not taxes.

America became strong, with tariffs.

It’s the only tax, we should have.


18 posted on 08/06/2011 6:10:11 PM PDT by Cringing Negativism Network (We are not tea partiers ... we are good tea partiers. Life-long tea partiers)
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The Freepathon is still on. Please donate today.
Don't let FR fade away! Donate.

19 posted on 08/06/2011 6:12:58 PM PDT by RedMDer (Abolish FReepathons. Be a monthly donor.)
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To: NoLibZone
Telling Ubama to live within his means is RACIST!!!!
20 posted on 08/06/2011 6:28:22 PM PDT by E. Pluribus Unum (Palin is coming, and the Tea Party is coming with her.)
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To: Gena Bukin
"8-8-11

What's happening next Monday?"

Stock Market Crash.

21 posted on 08/06/2011 6:30:11 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: NoLibZone

What’s happening Monday is Geithner will blow through that entire 2.4 trillion, by noon.


22 posted on 08/06/2011 6:32:43 PM PDT by Cringing Negativism Network (We are not tea partiers ... we are good tea partiers. Life-long tea partiers)
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To: doc

“You know what would help us China. We should take our manufacturing out of your country and bring it back to the US!!”

Exactly then cancel, the China MFN as well.


23 posted on 08/06/2011 6:34:46 PM PDT by Cheetahcat ( November 4 2008 ,A date that will live in Infamy.)
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To: Cringing Negativism Network
"I just checked over at DU. What I found over there, is that the left is just as wimpy about doing something real about trade. If not now, WHEN? A good old-fashioned trade war is EXACTLY what will be good for American jobs. So why is everyone afraid to say so? Why are both parties silent on such an obvious response? Why do you suppose, Trump was finding such response to his momentary campaign? Because he say the Emperor is not wearing clothes. What are we waiting for?"

Thanks for the post,Problem here is our weak link in Congress, The Weeper I do not think he has what it takes to pull this off,I know Bachmann and Palin do!

24 posted on 08/06/2011 6:38:13 PM PDT by Cheetahcat ( November 4 2008 ,A date that will live in Infamy.)
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To: NoLibZone

The Chi-coms have no business telling any other country how to be just like the US elitists have no business bossing and shoving everyone around on the globe. We got us a serious case of the nanny globe.


25 posted on 08/06/2011 6:43:36 PM PDT by SaraJohnson
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To: NoLibZone
"8-8-11 What's happening next Monday?"............... Stock Market Crash.

You got that right.


26 posted on 08/06/2011 6:51:10 PM PDT by SkyPilot
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To: GrandJediMasterYoda

I absolutely hate it when I’m on the same side of an issue with communist Chinese government officials. You marxist liberals are worse than communist Chinese if even they are hammering you.


27 posted on 08/06/2011 7:05:53 PM PDT by USCG SimTech (Honored to serve since '71)
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To: Paperdoll
The truth never changes. The borrower is always the slave of the lender.

Until the borrower borrows so much that the bankruptcy of the borrower means the bankruptcy of the lender. Then the lender becomes the slave.
28 posted on 08/06/2011 7:20:37 PM PDT by Cheburashka (If found, please return this Ring of Power to Sauron, Lord of Darkness. Return postage guaranteed.)
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To: NoLibZone

Y’know, this would be a PERFECT time to throw the standard “We will brook no interference with the internal affairs of China” in Beijing’s face.

If, for nothing else, the delicious irony of it. . .


29 posted on 08/06/2011 7:40:56 PM PDT by Salgak (Acme Lasers presents: The Energizer Border: I dare you to try and cross it. . .)
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To: NoLibZone

Well, I guess I hope China has better luck then what the American people have had so far. Talk about totally ignoring what most American’s want. We’ve been screaming stop, stop for the past several years and no body is listening but, the tea party. To many politician’s have become the ruling elite. I just hope and pray for a political earthquake come nov. 2012. Something that will rock Washington and give the rest of the country a huge sigh of relief and thanks giving.


30 posted on 08/06/2011 8:07:07 PM PDT by MsLady (Be the kind of woman that when you get up in the morning, the devil says, "Oh crap, she's UP !!")
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To: NoLibZone

The student has become the master!!


31 posted on 08/06/2011 8:33:32 PM PDT by keving (We get the government we vote for)
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To: NoLibZone

The student has become the master!!


32 posted on 08/06/2011 8:33:40 PM PDT by keving (We get the government we vote for)
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To: NoLibZone

The student has become the master!!


33 posted on 08/06/2011 8:33:40 PM PDT by keving (We get the government we vote for)
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To: NoLibZone

The student has become the master!!


34 posted on 08/06/2011 8:33:40 PM PDT by keving (We get the government we vote for)
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To: NoLibZone

The student has become the master!!


35 posted on 08/06/2011 8:33:50 PM PDT by keving (We get the government we vote for)
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To: Cringing Negativism Network

Or at least until the Chinese allow the RMB to freely float. Free trade is good as long as it really is free trade.


36 posted on 08/06/2011 8:41:12 PM PDT by garbanzo (It's the end of the world as we know it and I feel fine)
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To: NoLibZone

37 posted on 08/06/2011 8:54:53 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: NoLibZone

Hypocrites.


38 posted on 08/06/2011 9:53:30 PM PDT by TBP (Obama lies, Granny dies.)
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To: Cheburashka

Whew! Ya thihnk?


39 posted on 08/07/2011 10:51:52 AM PDT by Paperdoll (NO MORE BUSHS!)
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