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China Blasts U.S. Debt Problems, Urges New Global Reserve Currency

Discussion in 'World Affairs' started by Devil Soul, Aug 6, 2011.

  1. Devil Soul

    Devil Soul ELITE MEMBER

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    China Blasts U.S. Debt Problems, Urges New Global Reserve Currency
    SHANGHAI, Aug 6 (Reuters) - China on Saturday condemned the "short-sighted" political wrangling in the United States over its debt problems and said the world needed a new global stable reserve currency.

    "China, the largest creditor of the world's sole superpower, has every right now to demand the United States address its structural debt problems and ensure the safety of China's dollar assets," China's official news agency said in a commentary.

    "International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country," it said.

    The United States lost its top-tier AAA credit rating from Standard & Poor's on Friday.
     
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  2. LetsGetRowdy

    LetsGetRowdy FULL MEMBER

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    Maybe if the US hand over Hawaii and California, China will erase all half of the debt. The other half the US can pay slowly (with interest) throughout the rest of the century.
     
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  3. jdme

    jdme SENIOR MEMBER

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    So China owns like 8% of US debt and it will erase 4% of debt for California?
     
  4. ephone

    ephone SENIOR MEMBER

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    This kind of joke goes nowhere.

    U.S. need seriously gets its act together. It simply cannot afford its huge military spending as well as bloated social welfare. It need dramatically overhaul.

    I do not know how it could still supports its wars if nobody loans it the money. Basically, China has funded (loaned the money to) U.S. war in Iraq, Afghanistan.
     
  5. jdme

    jdme SENIOR MEMBER

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    I have a feeling people are still going to buy treasury bonds.
     
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  6. fd24

    fd24 SENIOR MEMBER

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    It will appear so to the public but it will be fixed. America will have to give in on places like taiwan or trying arming countries against china in return the chinese will give them some money
     
  7. jdme

    jdme SENIOR MEMBER

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    No one is forcing Chinese to buy treasury bonds. It's not a charity.
     
  8. Ryuu

    Ryuu FULL MEMBER

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    lol

    as i mentioned in other thread 700 billion per year on defence,china should stop giving credits
     
  9. perplexed

    perplexed BANNED

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    There is a difference in lending money (which u mentioned) and funding their debts. What you are saying does not make sense.

    China does not have any other option. Where will china park its export profits ?
    China should realize that its their faulty monetary policy which has led them to such a situation. ( google to know how )
     
  10. Obambam

    Obambam SENIOR MEMBER

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    That will hurt their pride too much, but who knows, anything is possible. They may sell lands and disguise them under the term "special economic zone" to avoid a national backlash.
     
  11. Galaxy

    Galaxy FULL MEMBER

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    China didn't had any other option. It had/has to depend on US. 75% Chinese money is in Dollar. It's China fault. China need to check it's economy/monetary policy. If USA gets hurts, China too. Hence, China is urging New Global Currency. - But it won't happen at any cost.
     
  12. Chinese-Dragon

    Chinese-Dragon PDF THINK TANK: ANALYST

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    Where else can we put our $3 trillion in excess currency reserves?

    The three main options... are the USA, Europe and Japan.

    ALL of which, are facing severe economic problems.

    It's a Catch-22 situation.
     
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  13. VCheng

    VCheng ELITE MEMBER

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    What China gains from buying US debt is economic opportunity for itself by keeping the US consumer demand going. After all, why don't people consider WHY China continues to buys US-backed securities?
     
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  14. Chinese-Dragon

    Chinese-Dragon PDF THINK TANK: ANALYST

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    Because America is our biggest customer, our biggest debtor, and the current bedrock of the international financial order.

    We have everything to lose, and nothing to gain, if the US economy goes downhill.

    And US government bonds are still one of the safest and most liquid assets in the world.
     
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  15. VCheng

    VCheng ELITE MEMBER

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    Exactly my point! :)