• If you are having problems logging in please use the Contact Us in the lower right hand corner of the forum page for assistance.

China has 'canceled US credit card': lawmaker

hypocritexposer

Well-known member
I remember Kola saying that China needed to purchase this debt, thought she might be interested in this article.

Kola, did you not say they would continue buying this debt, because they wanted the US to continue buying their consumer goods.

Is that the same with the number 2 holder of Debt also?

If Obama is correct that the US can be independent of foreign oil, how will that affect their borrowing power?

Thanks

China has 'canceled US credit card': lawmaker
Thu Apr 30, 6:11 pm ET

WASHINGTON (AFP) – China, wary of the troubled US economy, has already "canceled America's credit card" by cutting down purchases of debt, a US congressman said Thursday.

China has the world's largest foreign reserves, believed to be mostly in dollars, along with around 800 billion dollars in US Treasury bonds, more than any other country.

But Treasury Department data shows that investors in China have sharply curtailed their purchases of bonds in January and February.

Representative Mark Kirk, a member of the House Appropriations Committee and co-chair of a group of lawmakers promoting relations with Beijing, said China had "very legitimate" concerns about its investments.

"It would appear, quietly and with deference and politeness, that China has canceled America's credit card," Kirk told the Committee of 100, a Chinese-American group.

"I'm not sure too many people on Capitol Hill realize that this is now happening," he said.

The Republican lawmaker said that China was justified in concerns about returns from finance giants Fannie Mae and Freddie Mac, which were bailed out by the US government due to the financial crisis.

Kirk said he was the first member of Congress to tour the Bureau of Public Debt, which trades bonds, and was alarmed at how much debt was being bought by the US Federal Reserve due to absence of foreign investors.

"There will come a time where the lack of Chinese participation may have a significant impact," Kirk said.

"We should track that, because up until last month they were the number one provider of currency to the United States and now they're gone."

With China's economy also hit by the global economic crisis, Premier Wen Jiabao has openly voiced concern about the status of his country's investments in the United States.

China has also floated replacing the dollar as the key international currency with a basket of units bringing in the euro, sterling and yen.

http://news.yahoo.com/s/afp/20090430/pl_afp/financeeconomyuschinabonds
 

Broke Cowboy

Well-known member
Time might come when no one will purchase U.S. of A. debt - then the printing machines go into over drive.

That is when trouble comes - you folks down south ran ot of money three months earlier this year than last year.

All the cash in the country now is borrowed money.

Someone will have to pay it back.

I still do not see how a country can borrow its way out of hock.

And today the National Post - Don Martin: Obama is proving a dangerous man for Canada.

One and a half billion dollars of trade a day means a lot of jobs on both sides of the border - this could be bad - the Obama glow is becoming quite dull in Canada now.

Yeah, I know - it is all Bush's fault.

BC
 

Sandhusker

Well-known member
How is Obama going to get financing for the trillions that he's planning to spend? Maybe he'll send Hillary over there to beg the ChiComs again?

The writing's been on the wall on this one for a long time.
 

Mike

Well-known member
Sandhusker said:
How is Obama going to get financing for the trillions that he's planning to spend? Maybe he'll send Hillary over there to beg the ChiComs again?

The writing's been on the wall on this one for a long time.

We only owe China around $800 BILLION.

We owe Japan around $700 BILLION.

That's chicken feed to Zer0's boys.....................................

Heck, they can print more than that overnight! :lol: :lol:
 
Top