Sunday, March 15, 2009

Chins is concerned we will become deadbeats

China is holding the biggest chunk of US foreign debt. The massive new spending and borrowing by the Obama Administration is giving them concern. President Obama needs the Chinese to keep buying US bonds to finance his spending. He made a statement to try to calm their fears.

Obama's statement on US debt.


Here is a CBS News article describing the Chinese concern.
U.S. Debt Worries China
America's Largest Foreign Creditor Concerned Its Massive Holdings Will Plummet In Recession

(AP) China's premier expressed concern Friday about its massive holdings of Treasuries and other U.S. debt, appealing to Washington to safeguard their value, and said Beijing is ready to expand its stimulus if the economy worsens.

Premier Wen Jiabao noted that Beijing is the biggest foreign creditor to the United States and called on Washington to see that its response to the global slowdown does not damage the value of Chinese holdings.

"We have made a huge amount of loans to the United States. Of course we are concerned about the safety of our assets. To be honest, I'm a little bit worried," Wen said at a news conference following the closing of China's annual legislative session. "I would like to call on the United States to honor its words, stay a credible nation and ensure the safety of Chinese assets." (excerpt) read more at cbsnews.com

1 comment:

Steel Phoenix said...

They should be concerned. They have loaned a great deal of wealth in exchange for a promise of future paper we are quite capable of just printing. I think we should. Print it and give it to China and our credit rating is the only thing that doesn't improve. China pegging their Yuan below the Dollar is what is keeping us down. Lets see them keep up these predatory economics when we start paying them with printed money.