China Expresses Concern at Prospect of U.S. Default

[alp227]

Source: Reuters

BEIJING (Reuters) - China's Foreign Ministry said on Thursday that it hoped the U.S. government would take a responsible attitude to protect investor interests, in Beijing's latest expression of concern about the possibility of Washington briefly defaulting on its debt.

Moody's Investors Service warned on Wednesday that the United States may lose its top credit rating in the coming weeks if the limit on American borrowing was not raised.

"We hope that the U.S. government adopts responsible policies and measures to guarantee the interests of investors," ministry spokesman Hong Lei said at a regular news briefing in Beijing, when asked about the Moody's report.

He did not elaborate.

Read more: http://www.nytimes.com/reuters/2011/07/14/us/politics/politics-us-china-usa-debt.html

[ixion]

1. "to guarantee the interests of investors"

And there it is.

[watajob]

2. Well, yeah!

You don't think they give a fuck about us, do you? :rofl:

[Igel]

5. Here are the investors:

As of the end of 12/2010

End of month
Dec

Total public debt
14,025.2 (in billions of dollars)

Federal Reserve and Intragovern-mental Holdings
5,656.2

Total privately held
8,368.9

Depository institutions
315.7

U.S. savings bonds
187.9

Pensions: Private
Includes U.S. Treasury securities held by the Federal Employees Retirement System Thrift Savings Plan "G Fund."
615.9

Pensions: State and local governments
185.8

Insurance companies
253.0

Mutual funds
636.4

State and local governments
519.8

Foreign and international
4,437.9

Other investors
Includes individuals, Government-sponsored enterprises, brokers and dealers, bank personal trusts and estates, corporate and non-corporate businesses, and other investors
1,216.6


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No, I don't understand what the last "other investors" is: I suspect it's a kind of slush category for securites they couldn't clearly place in another category. On the other hand, the Savings Bonds in my parents' trust certainly qualify.

[No Elephants]

3. Was that the left shoe or the right shoe dropping?

[area51]

4. A "responsible attitude" would be

ending the multiple wars of choice and cutting back on military spending. Unlikely.

[unkachuck]

6. "He did not elaborate."

....he did not elaborate because war is not a nice word....if we chump the Chinese with our worthless paper, expect the Chinese to use military force against our interests in the world....

....we must remember who is ascending and who is in decline....

[WatsonT]

8. Unlikely

China is dependent on trade with the US.

Their entire economy is based around produce cheap, shitty stuff and exporting it abroad, largely to the US.

A war with the US would hurt them just as badly.

And their military, while growing, is still far from being able to project power much beyond its own borders.

They are certainly secure from invasion but they can't really go on too much of a rampage.

[WatsonT]

7. We could place a tariff on imported Chinese goods equal to the one they place on American goods

send the proceeds to directly pay down the debt.

It may even help some businesses stay alive here.

[AnnieBW]

9. Mustn''t worry our masters...

They might as well just hack into our banks and take their money.