You got that right.
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 ...
What's happening next Monday?"
Stock Market Crash.
What’s happening Monday is Geithner will blow through that entire 2.4 trillion, by noon.
“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.
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!
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.
You got that right.
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.
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. . .
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.
The student has become the master!!
The student has become the master!!
The student has become the master!!
The student has become the master!!
The student has become the master!!
Or at least until the Chinese allow the RMB to freely float. Free trade is good as long as it really is free trade.
Hypocrites.
Whew! Ya thihnk?
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