Why China is Laughing All the Way to the Bank

[ej510]

The global impact of the American debt crisis—and the likelihood of permanent damage to American interests—are already visible to Sen. John Kerry, D-Mass., from his perch as chairman of the Senate Foreign Relations Committee. Indeed, he is not only seeing but hearing those effects.

“The Chinese are laughing all the way to the bank,” said the former Democratic presidential nominee, because a downgrading of U.S. Treasury securities will mean enormous and completely unnecessary increases in our interest payments to the nation’s largest creditor—and our most important competitor in the international arena.

“If we suffer a downgrade of our (U.S. Treasury) debt simply because of the brief time before we have to go through this exercise again,” said Kerry, referring to the House Republican insistence on a debt-limit increase that will expire before next Christmas, “it would mean billions of additional dollars that would have to be paid to the Chinese.”

Those costs would come on top of the extra interest expense that all Americans would see on their home loans, car loans, student loans and credit cards, further weakening the slow recovery from the recession. Moreover, that loss would cut into government’s capacity to pay for important functions, sending many billions of additional dollars abroad instead of rebuilding our infrastructure, bolstering Social Security and Medicare, educating our children and maintaining national security.

Read more at the link: http://www.truthdig.com/report/item/why_china_is_laughing_all_the_way_to_the_bank_20110729/

[phasma ex machina]

1. Bernanke and his banksters can easily print all the dollars that the Chinese banksters want.

[ej510]

2. True which is why the debt ceiling is bullshit,

[Shagbark Hickory]

3. China is beating us at our own game. nm