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

[Juice]

No I haven't. I wasn't talking in the lines of India, Pakistan. I was talking in the lines of Canada, Australia. If they are considered colonised then
American is colonised as well since they have British ancestory as well.

And even though we speak the same language we don't use it in the same prospective. We say 'mate' and you guys say 'homies'. lool Btw I was just pulling your leg. Chill

I knew you weren't totaly serious...but I love a good debate too much. And yes, Canada and Australia are in line with American experience.

 

[Juice]

No I haven't. I wasn't talking in the lines of India, Pakistan. I was talking in the lines of Canada, Australia. If they are considered colonised then
American is colonised as well since they have British ancestory as well.

And even though we speak the same language we don't use it in the same prospective. We say 'mate' and you guys say 'homies'. lool Btw I was just pulling your leg. Chill

I knew you weren't totaly serious...but I love a good debate too much. And yes, Canada and Australia are in line with American experience.

 

[Juice]

No I haven't. I wasn't talking in the lines of India, Pakistan. I was talking in the lines of Canada, Australia. If they are considered colonised then
American is colonised as well since they have British ancestory as well.

And even though we speak the same language we don't use it in the same prospective. We say 'mate' and you guys say 'homies'. lool Btw I was just pulling your leg. Chill

I knew you weren't totaly serious...but I love a good debate too much. And yes, Canada and Australia are in line with American experience.

 

[Thomas]

You're kidding, right?? China can nationalize the American ownership stakes in GM China, IBM, Yum! Brands, McDonalds, Coca-Cola China, HP, Ford, et cetera and that's just the non-financial assets. Then there's the financial assets at Citibank, Morgan Stanley China, et cetera. The US equity markets will easily be wiped out of $1.3 Trillion.

And we haven't even moved on to Hong Kong.

They can nationalize the assets located in China but not the companies. Even then you would be hard pressed to come up with 1.2 trillion in assets. Plus and that would only trigger a tit for tat exchange. China has large assets in the U.S. that would be in danger of siezure. I doubt China would ever go down that road.

 

[Obambam]

 

[ChineseTiger1986]

Double standards. And British Americans are only 13% of today's population. They're less than Italian/German/Irish/French Americans. Yeah most of Americans have part British in them but not British. You can't have both. You can't have 'American culture' and claim to be British as well.

SO technically you guys were colonised.

Well, most White Americans can trace back their ancestry to UK.

Most so-called "German Americans" are in fact not even 1/2 ethnic German.

A guy like Bill Clinton is most likely over 90% English American, but he calls himself Irish-American just to sound cooler and his hero was JFK, an Irish American President.

 

[gulte]

Simple answer, raise the damn taxes. US tax rates are much lesser than European countries.

 

[genxindian]

S&P rings some serious credibility bells ,its the same firm which gave Goldman Sachs,Merrill Lynch and Lehman Brothers triple A ratings just days before bailed out.So whwn such is the case y be gung ho abt the debt ratings and btw Mr BUffet tells he'd give the US a quadraple A ratings at present if existed

 

[Obambam]

S&P rings some serious credibility bells ,its the same firm which gave Goldman Sachs,Merrill Lynch and Lehman Brothers triple A ratings just days before bailed out.So whwn such is the case y be gung ho abt the debt ratings and btw Mr BUffet tells he'd give the US a quadraple A ratings at present if existed

Regardless, they are still one of the 3 major U.S. credit rating companies and their decisions of a downgrade will affect the confidence of global investors into the American market.

 

[Moustafa Kalaf]

Maybe China will send a dept collector to the US and ask it to pay.

 

[Chinese-Dragon]

Maybe China will send a dept collector to the US and ask it to pay.

LOL no that doesn't work between countries.

The only real recourse to unpaid debt, is to seize any of their assets that are based in China. Almost all the major multinational corporations have assets in China, which should be enough to cover at least a portion of the unpaid interest.

I doubt it will happen though. If America runs into further problems, they can simply delay paying their own citizens who hold government bonds, and pay off the foreign debt holders first.

 

[Vibs]

LOL no that doesn't work between countries.

The only real recourse to unpaid debt, is to seize any of their assets that are based in China. Almost all the major multinational corporations have assets in China, which should be enough to cover at least a portion of the unpaid interest.

I doubt it will happen though. If America runs into further problems, they can simply delay paying their own citizens who hold government bonds, and pay off the foreign debt holders first.

I think it goes beyond that. Global trade runs on dollar as the traded currency. "Dumping" or pull out from these debts by China is going to drastically affect the dollar rates. Global trade is going to be impacted massively. Even China will not benefit from this as a falling dollar price would eradicate the value of their investments. There is a need for fast growing economies like the BRICS to help introduce a global currency based on a basket of currencies to prevent reliance on the recession hit Dollar and Euro.

 

[below_freezing]

LOL no that doesn't work between countries.

The only real recourse to unpaid debt, is to seize any of their assets that are based in China. Almost all the major multinational corporations have assets in China, which should be enough to cover at least a portion of the unpaid interest.

I doubt it will happen though. If America runs into further problems, they can simply delay paying their own citizens who hold government bonds, and pay off the foreign debt holders first.

Delaying paying their own citizens would cause the US to break up like the Soviet Union.

The only thing keeping 32% of their population that's black and Mexican from rioting against the regime is the welfare dole.

 

[below_freezing]

LOL no that doesn't work between countries.

The only real recourse to unpaid debt, is to seize any of their assets that are based in China. Almost all the major multinational corporations have assets in China, which should be enough to cover at least a portion of the unpaid interest.

I doubt it will happen though. If America runs into further problems, they can simply delay paying their own citizens who hold government bonds, and pay off the foreign debt holders first.

Delaying paying their own citizens would cause the US to break up like the Soviet Union.

The only thing keeping 32% of their population that's black and Mexican from rioting against the regime is the welfare dole.

 

[Chinese-Dragon]

I think it goes beyond that. Global trade runs on dollar as the traded currency. "Dumping" or pull out from these debts by China is going to drastically affect the dollar rates. Global trade is going to be impacted massively. Even China will not benefit from this as a falling dollar price would eradicate the value of their investments. There is a need for fast growing economies like the BRICS to help introduce a global currency based on a basket of currencies to prevent reliance on the recession hit Dollar and Euro.

Yep, something like IMF special drawing rights, but with more weight given to currencies that are not in the big four.

Currently the SDR's give the most weight to the US dollar and the Euro, followed by the Japanese Yen and the British pound.