Article

2011-08-06 China-Japan-Koreas

China has right to demand US address debt problem

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Posted by tipper 2011-08-06 07:59|| || Front Page|| [2 views ] Top

#1 Of course the refusal for a decade-plus to allow the Chinese currency to float against the dollar, thus allowing the 'invisible hand' of commerce to make its own adjustments [such as raising the price of Chinese goods and thus decreasing demand], compounded the current situation.

Posted by Procopius2k 2011-08-06 08:27|| 2011-08-06 08:27|| Front Page Top

#2 Of course it did, P2k. But the Chinese have no qualms about exploiting us when we make it so easy ... not to mention their joy as we lose face.

That said, they're nervous - and should be.

Posted by lotp 2011-08-06 08:33|| 2011-08-06 08:33|| Front Page Top

#3 "To cure its addiction to debts, the United States has to re-establish the common sense principle that one should live within its means."

1.3 billion additional members of the Tea Party.

Posted by Matt 2011-08-06 09:00|| 2011-08-06 09:00|| Front Page Top

#4 Mr. Debt Problem
77 Tulip Square of the Revolution
Shanghai, PROC 32303

Dear Sirs,
Go to the end of the line.
Thank you.

Posted by S 2011-08-06 11:39|| 2011-08-06 11:39|| Front Page Top

#5 I think the Chinese need to pay back the pre-Communist Revolution debt, 100% of which they repudiated, before they can start talking about demanding anything from Uncle Sam. Besides, like everybody else, they are entitled to sell their Treasury holdings and stop hanging on to US dollars. Of course, that would entail appreciating the RMB against the dollar, which might just zero out their trade surplus with the US. Can't win 'em all...

Posted by Zhang Fei 2011-08-06 14:06|| 2011-08-06 14:06|| Front Page Top

#6 AA+ is extremely generous for a country at 100% debt to GDP.

We should be kissing their ass for an AA+.

Posted by bigjim-CA 2011-08-06 16:07|| 2011-08-06 16:07|| Front Page Top

#7 AA+ is extremely generous for a country at 100% debt to GDP.

We should be kissing their ass for an AA+.

I'm inclined to agree. While Japan, with its AA- rating, is at 200%, Indonesia has a BB+ rating despite only having a public debt to GDP ratio of 26%. The key difference between Indonesia and both Japan and Uncle Sucker? With the exception of below-market price gasoline, produced from Indonesian oil reserves, Indonesia has essentially no welfare state obligations. And Indonesia has been reducing the gasoline subsidy over time, whereas the developed countries have been feverishly adding to already lavish welfare state benefits.

Posted by Zhang Fei 2011-08-06 17:46|| 2011-08-06 17:46|| Front Page Top

#8 I agree that we need to ensure an ability to repay our debts, particularly to the Chinese. Let us start with a 25% targeted deficit reduction premium on imports from China to be used to purchase our bonds back from China.

Posted by Perfesser 2011-08-06 20:45|| 2011-08-06 20:45|| Front Page Top

#9 As per FREEREPUBLIC, CHINA = also is seemingly calling for "INTERNATIONAL SUPERVISION" of the US + its anti-Debt efforts.

["RED DAWN I/II" MOTHERLY COMMIE-DPRK AIRBORNE, ANTI-US, OWG-NWO WEAK USRoA GLOBAL SSR = United Socialist Republiks of Amerika = North Amerika here]???

Posted by JosephMendiola 2011-08-06 21:39|| 2011-08-06 21:39|| Front Page Top

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