China, understandably, is concerned about the safety of its investment in the United States.
[Chinese Premier] Wen [Jiabao] earlier said that China, the U.S. government’s largest creditor, is “worried” about its holdings of Treasuries and wants assurances that the investment is safe. “I request the U.S. to maintain its good credit, to honor its promises and to guarantee the safety of China’s assets,” he said at a press briefing in Beijing.
President Barack Obama is relying on China to sustain buying of Treasuries amid record amounts of U.S. debt sales to fund a $787 billion stimulus package and a deficit this year forecast to reach $1.5 trillion. Investors abroad own almost half of all U.S. debt outstanding, and China last year overtook Japan as the biggest foreign buyer.
China held $696 billion in U.S. Treasury debt as of Dec. 31. [Bloomberg]
We’re in deep doodoo. I surely hope President Obama can dig us out of this hole before China forecloses and becomes owner of the United States.
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Three words: 'THE FLYING TIGERS" where would China be now! How about the"ALUMINUM TRAIL", There's alot of American blood already been spent to preserve this nation!
Maybe if they would not be a protectionist country and allow American goods in, Well the list goes on!
Take Care,& God Bless.
China should be worried about their dangerous over investment in US Treasury obligations. Washington ’s long-term choice is either repudiation or monetization. For monetization to be effective, the depreciation in the dollar would have to be substantial and this in turn would dramatically raise prices of imports for American consumers which would mean a tremendous drop in foreign imports. Debt monetization would cause more disruption to exporting nations than selective repudiation of Treasury debt.
Washington has bailed out the banks, Wall Street & their Washington special interests and much of the cost is added to the national debt to by paid by this and future generations while real estate and investments continue to fall. Find out what a growing repudiate the debt movement could mean for treasury bonds, the dollar, gold and the stock market.
The Campaign to Cancel the Washington National Debt By 12/22/2013 Constitutional Amendment is starting now in the U.S. See: http://www.facebook.com/group.php?gid=67594690498&ref;=ts
Thanks,
Ron