China Involved in Debt Debate

[Donnachaidh]

http://economyincrisis.org/content/china-involved-debt-debate

In an example of how the U.S. has forfeited its sovereignty thanks to poor policy, Chinese officials are now putting pressure on the U.S. government on how to shape the budget and manage debt.

More than half of U.S. debt is owned by foreign interests, with China being the largest of those foreign stakeholders with more than $1 trillion in U.S. debt. This accumulated debt is the result of our massive trade imbalance with China, which totaled more than $275 billion last year. These debt holdings give China massive leverage against our government and economy.

“We are paying close attention to the domestic discussion in the U.S. on debt and deficits. We hope the U.S. can take effective measures toward fiscal reorganization,” Chinese Vice Finance Minister Zhu Guangyao said.

U.S. and Chinese officials are scheduled to meet in the coming days to discuss the subject, while U.S. trade officials plan to implore the Chinese to let the value of their currency rise. According to many analysts, the Chinese currency is undervalued by as much as 40 percent, giving Chinese imports a very competitive discount compared to American products.

More at the link --

[midnight]

1. K&R

[Drale]

2. China is never going to force that debt because

If the US economy collapses, China with have no one to buy their cheap manufactured CRAP!

[DeSwiss]

3. Exactly.

- Besides, whose gonna make us???





K&R

[malaise]

4. Thank Nixon and George W Bush n/t

[patricia92243]

5. The Chinese will encourage us to be like them - no value on human life. It will be a lot cheaper to

let seniors, disabled, etc die than to "waste" money on them with Social Security, Medicare, etc. That will be just the beginning. Pensions and other things that "waste" money on unproductive humans will have to go. We are in sooo much trouble.

The new reality is not going to be fun :(

[Drale]

6. Those things are what is going to cause Rebellion against the Chinese government

Its only a matter of time before the people get fed up with the horrible dangerous conditions and the lack of the government caring about them and will rise up against them.