China tells U.S: Get your debt under control

[lamlap]

"We hope the U.S. government will take responsible policies and measures to boost global financial market confidence and respect and protect the interests and investors," said the Chinese government's State Administration of Foreign Exchange in a statement on its website.

The Chinese statement referred to U.S. debt as "the reflection of the credibility of the U.S. government" and an important investment tool.


China tells U.S. to get debt under control - Jul. 20, 2011

 

[Maritimer]

It is time for China to dump the US T-bills and invest in gold, oil fields, etc. The US may somehow wriggle out of the current crisis , but the US economy is unlikely to pay off these mammoth debt in the future.

 

[indian navy]

what will the impact

 

[Tiki Tam Tam]

I believe Obama wants to increase the debt level.

» Obama: “Raise Debt Ceiling Or Risk Global Recession” Alex Jones' Infowars: There's a war on for your mind!

 

[Solomon2]

It is time for China to dump the US T-bills and invest in gold, oil fields, etc. The US may somehow wriggle out of the current crisis , but the US economy is unlikely to pay off these mammoth debt in the future.

Past time. Some economists were telling China to buy 300 tons of gold a year rather than 50 over a decade ago. That would have help gear China's industrialization to domestic demand and make the renminbi a reserve currency. China preferred to invest in U.S. mortgages and T-bills instead. The result was a worldwide financial bubble not seen since the 1920s.

China's options now are more limited. Yes, the U.S. may cut spending and raise taxes to get its act together but we'll be paying off mortgages too. Where will China dump its capital surpluses without creating more long-term problems for China and others? Gold is too high, real property too unwieldy, and the Euro is tottering worse than the dollar is.