China, the biggest foreign creditor of the United States, has waded into the American budget crisis, warning Congress that it must resolve the political impasse over the debt ceiling without further delay.
The Chinese Vice Foreign Minister, Zhu Guangyao, told America‚Äôs deadlocked politicians on Monday that ‚Äúthe clock is ticking‚ÄĚ and called on them to approve an extension of the national borrowing limit before the federal government is projected to run out of cash on 17 October.
‚ÄúWe ask that the United States earnestly takes steps to resolve in a timely way the political issues around the debt ceiling and prevent a US debt default to ensure the safety of Chinese investments in the United States,‚ÄĚ Mr Zhu told reporters in Beijing. ‚ÄúThis is the United States‚Äô responsibility,‚ÄĚ he added....
Just this morning: "As the first step in creating a de-Americanised world, all nations must try to shape an international system that respects the sovereignty of all nations and ensures the US keeps out of the domestic affairs of others, Xinhua said.
"The developing and emerging market economies need to have more say in major international financial institutions including the World Bank and the International Monetary Fund, so that they could better reflect the transformations of the global economic and political landscape," the editorial says.
It also called for an end to the use of the US dollar as the international reserve currency, a step that would ensure the international community could maintain a safe distance from the side-effects of domestic political turmoil in the United States."
Chris, if their money was mostly wrapped around the US dollar, that would make sense, but at last "guesstimate" this accounted for less than 30% of their holdings in foreign monies. They've hedged themselves well and need only to wait for whatever moment they want. Like I said though, they may have another path in mind and not care a fig about us; it's plausible though. They've surpassed us as export kings. Follow the GNP's of both countries and we're like a turtle on it's back...
trade outside of dollar has already commenced, despite our efforts with Qadd, etc, and if you hear Putin's comments from G20, you will find they think its important to deal with the "imbalances" of the international economy (that would be the holders of the world currency printing it out of value)
China won't cash in for the same reason that the Russian oil borst (sp?) never switched from the American dollar...because it would crash the American economy, I think anyway, and trickle throuhout the entire world. What does China own, like 51 or 49% of the US via T-bills?
From the news: "The Chinese Vice Foreign Minister, Zhu Guangyao, told America‚Äôs deadlocked politicians on Monday that ‚Äúthe clock is ticking‚ÄĚ and called on them to approve an extension of the national borrowing limit before the federal government is projected to run out of cash on 17 October."
Sure, more debt is getting your fiscal house in order, right ZG? Your support of our president's position is noted.
There are plenty of dumb speeches these days. With federal revenues running more than 2.5 trillion annually, and the debt service costs running around 220 billion, does anyone consider this: By law servicing the debt takes priority over other spending. If the debt can be serviced, no default can occur.
China holds more of our debt than any other country in the world, by a considerable sum. What does one think would happen should they call in their debt? They don't even have to call in the majority of their holdings - about 35%-40% would cause the collapse of the US dollar. The Feds could print the money, but that would ramp up inflation and then all of our debt holders would want to divest as quickly as possible. Just one of many scenarios, but a very plausible, easily calculable one. If China did this, they would be in position of world dominance from a fiscal standpoint practically overnight. They have moved their chess pieces and it looks as though they were thinking waaayyyy ahead. Sadly, they have been handed the clout to make statements like this.
‚Äúthe clock is ticking‚ÄĚ and called on them to approve an extension of the national borrowing limit-quote
China is a State Church upholder and now they are a voice in the House of Representatives? Sounds like they are not the only State Church upholders. "And the beast that was and is not is the eighth and is of the seven, and goeth into perdition." Rev. 17:11