Posted on 05/19/2010 10:17:28 PM PDT by mlocher
BEIJING (Reuters) - Sovereign debt troubles in Europe underscore how important it is for the United States to control its own borrowing as its indebtedness reaches concerning levels, a senior Chinese official said on Thursday.
With China facing criticism for holding its currency in a de facto dollar peg, assistant finance minister Zhu Guangyao shifted attention to Beijing's own worries about U.S. policies, especially its soaring deficit, ahead of high-level bilateral meetings next week.
There will be "quiet discussions" about the yuan at the Strategic and Economic Dialogue, but external pressure will only delay the exchange rate reform that China wants to implement, he told a news conference.
The global economy's more urgent need is for financial conditions to stabilize in Europe in the wake of Greece's debt woes, Zhu said.
"The European sovereign debt crisis is a challenge not just for the countries that are party to it, such as Greece. In fact, it is a challenge to the stability of the entire international financial market," he said.
"It concerns the recovery of the entire international economy, and so it demands a common response from the international community," he said.
China will look to coordinate its economic policies with the United States as a buffer against the turbulence and would also like the G20 group of nations to play a role in strengthening the global response, Zhu said.
But the United States needs to take a hard look at its own fiscal situation in the light of what has happened in Europe, he said.
"We hope that the U.S. deficit will fall as a proportion of GDP as the economy recovers and reach a sustainable level," Zhu said.
This is a matter of concern for China and it has noted that U.S. officials, including President Barack Obama, have promised to keep an eye on debt levels, he said.
We’ve almost achieved banana republic status. Way to go Barry!
Normally I’d tell the Godless commie bastards to pound sand but CRAP I think I agree with the commie bastards.
How low have we sunk when even the disciples of Mao are giving us financial tips?
No matter the outcome of the elections in Nov., I think 0bama’s Death Care won’t be implemented. We’ll be in full financial crisis mode by 2011.
I agree. You can’t get blood out of a turnip. I know the doctors won’t work for free and I won’t blame them if they all put up a “Gone Fishin’” sign on their office doors.
“We’ve almost achieved banana republic status. Way to go Barry!”
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We’d be in much better shape as a country if it was indeed Just the incompetent RaceMarxist, and his Communist Party that were responsible for this downwardly spiraling fiscal disaster.
Unfortunately, the supposed alternative, the Republicans, in ongoing socialist Lite mode, have had a significant hand in this as well.
I agree. You can’t get blood out of a turnip. I know the doctors won’t work for free and I won’t blame them if they all put up a “Gone Fishin’” sign on their office doors.
And what you say is a tiny fraction of the horror of the whole thing.
May 19, 2010: Living on borrowed time.
No way to any recovery without hitting bottom first.
I hope I’m wrong.
A 25% tariff on all Communist Chinese stuff....and the ChiComs attitude will change real quick.
Isn’t Globalism Just Stupid
Actually, those in power are disciples of Deng Xiaoping, not Mao. The policies of Moa have been repudiated. Not an insignificant detail but I get your point.
The message the U.S. received is from a one party system that does not allow political freedom but has adopted capitalism as its economic model.
Bold statement and true. I fear we are being fed a bill of goods RINOs again.
“This is a matter of concern for China and it has noted that U.S. officials, including President Barack Obama, have promised to keep an eye on debt levels, he said.”
You know we are in trouble, when China is lecturing us and they are actually right!
Unfortunately it started before Obama. I can’t for the life of me understand why we started borrowing money from China. Couldn’t anyone figure out that borrowing money so we can give it away doesn’t work?
Reminds me of all those old jokes about the fat woman who's "watching" her weight -- "Yep -- goin' up, all right!"
“I hope I’m wrong.”
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I know you do but you may as well hope to sprout wings and fly or get on I-40 headed East and hope not to end up in Wilmington.
In that case, then you were talking about a Mao worshiper. I missed that.
I think she's in charge of White House employment or some such.
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