Our Biggest Creditor {China} Tells Us "The good old days of borrowing are over"
Rational Nation USA
Birthplace o Independent Conservatism
Liberty -vs- Tyranny
As the chickens come home to roast... Unbelievable we have been this stupid.
(Reuters) - Global leaders on Saturday arranged a round of emergency calls to discuss the twin debt crises in Europe and the United States that are causing turmoil in financial markets.
After a week that saw $2.5 trillion wiped off global stock markets, they are under pressure to show political leadership and reassure markets that Western governments have both the will and ability to reduce their huge and growing public debt loads.
French President Nicolas Sarkozy, who chairs the G7/G20 group of leading economies, conferred with Britain's Prime Minister David Cameron ahead of a call planned for this weekend by G7 finance ministers and central bankers.
"They discussed the euro area and the U.S. debt downgrade. Both agreed the importance of working together, monitoring the situation closely and keeping in contact over the coming days," a spokesman for Cameron said.
Standard and Poor's deepened the urgency for action late on Friday by stripping the United States of its top-tier AAA credit rating, a move that over time could ripple through markets worldwide by pushing up borrowing costs and making it more difficult to secure a lasting recovery.
It cited the acrimonious debate in Washington on raising the debt ceiling and near political paralysis over the best way to reduce the its $14.3 trillion debt, which on the current trajectory could climb above 100 percent of U.S. national output this decade.
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S&P's one-notch downgrade of the U.S. sovereign credit rating to AA-plus, while not totally unexpected, adds another level of uncertainty. Loss of gold-plated status for the world's benchmark interest rate risks pushing up borrowing costs on everything from car loans, mortgages and corporate debt to government bonds worldwide.
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China, the largest foreign holder of U.S. debt, took the world's economic superpower to task for allowing its fiscal house to get into such disarray. It also revived its calls for a new stable global reserve currency to replace the U.S. dollar, gaining a sympathetic ear in the United Kingdom.
"The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone," China's official Xinhua news agency said in a commentary.
Xinhua scorned the United States for a "debt addiction" and "short sighted" political wrangling. China, it said, "has every right now to demand the United States address its structural debt problems and ensure the safety of China's dollar assets." {Read Full Text}
Simply unbelievable!
Via: Memeorandum
Folks have been warning them for forty years, I don't know how they can pretend to be surprised.
ReplyDeleteThey are doing us a great favor.
ReplyDeleteOur government is a drunk, life careening out of control. Friends need to step in and take the bottle away.
Yep, the wonders of free markets!
ReplyDelete...the above comment is a major switch in subject.
ReplyDeleteDonald in Bethel, CT says:
ReplyDelete{{"The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone," China's official Xinhua news agency said in a commentary.}}
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There's no problem so big that the Dems cannot simply throw more money at it to make it go away.
And now we're reaping this fruit.
Thanks 111th Congress. (The previous Congress.) You were so good to this nation, really. Because of your reckless spending and knee-jerk liberalism, America has been downgraded as a whole. You have earned our contempt. Even though you are gone, your stench still fills the nostrils of the people of this nation. You were a political cancer, a virus, a disease. History will blame you for this.
No its not dmarks, its exactly the reason why China owns us....
ReplyDelete@TAO,
ReplyDeleteChina owns us because Obama has sold us to them. He's a socialist, so it is no shocker there. China is no dummy, either. Knowing that Obama would seek to dismantle this nation bit by bit only fueled their desire to make their move and own us financially.
Donald in Bethel, CT
Tao: The situation had nothing to do with free markets. It's entirely a public sector (government) problem.
ReplyDeleteRight dmarks, you want your ideology to be true that you create a vacuum for the reality that you want to believe....
ReplyDeleteDonald, if you want to know who began dismantling this country look no further than "free markets" then you can follow it through the Clinton and Bush years long before it ever landed in Obama's lap!
But that is okay, you both just want to vent your frustrations out....it doesn't solve anything but it makes you feel better!
Donald in Bethel, CT says:
ReplyDelete@TAO,
Spoken like a true socialist living in a capitalist nation. I hardly expect you of all people to understand.
Your protection and fealty of Dear Leader will serve you well in the future. Be sure to come visit me in the concentration camp. Where I will live as a free man despite the barbed wire.
Visit The following link. Coming from a independent conservative/libertarian, and limited yet rational government sort of individual...
ReplyDeletehttp://progressiveerupts.blogspot.com/2011/08/how-my-gop-destroyed-us-economy-by.html
A risk all should be willing to take for the sake of the greater "rational self interest" that have sometimes dovetails the "rational self interest of the individual."
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