“Safeguarding the Debt is of Vital Importance,” China FM. “This is the United States’ Responsibility”


obama-bow-china

The United States finally has a function. Acting as China’s reserve currency.

China, the biggest foreign creditor of the United States, has waded into the American budget crisis, warning Congress that it must resolve the political impasse over the debt ceiling without further delay.

The Chinese Vice Foreign Minister, Zhu Guangyao, told America’s deadlocked politicians on Monday that “the clock is ticking” and called on them to approve an extension of the national borrowing limit before the federal government is projected to run out of cash on 17 October.

“We ask that the United States earnestly takes steps to resolve in a timely way the political issues around the debt ceiling and prevent a US debt default to ensure the safety of Chinese investments in the United States,”  Mr Zhu told reporters in Beijing. “This is the United States’ responsibility,” he added.

“The US is clearly aware of China’s concerns about the financial stalemate and China’s request for the US to ensure the safety of Chinese investments,” he said yesterday.

China held $1.28tn in US Treasuries in July 2013, according to US Treasury data, although the true figure could well be higher than this as China also invests through intermediaries.

“The U.S. is the world’s biggest economy and a major country issuing reserve currency. Safeguarding the debt is of vital importance to the economy of the U.S. and the world,” China’s Vice Minister of Finance Zhu Guangyao told a press briefing held by the Chinese Foreign Ministry.

“This is the United States’ responsibility,” he said.

Under the current situation, Zhu advised the U.S. Treasury Department to take the first step to ensure the interest payments of the government bonds and then pay the principles through the replacement of old debt by new.

The good news is that China wants to keep lending us money they don’t have so that we can spend money that we don’t have on things that we don’t need.

The bad news is all of the above, plus that liberalism means that America is destroying its economy and its credit worthiness on Obama’s insane spending spree while acting as a hole for Chinese bankers to toss their money into.

Think of us as the people taking out subprime mortgages and China as the lenders. Except the lenders suspect that they’ll go bust before we do because their wacky mix of Crony Capitalism and Communism with heady doses of corruption is what we’re doing but without any of the environmental concerns.

  • pupsncats

    Its all a game betting on the lives of Americans and the future existence of America. How much longer will the Chinese believe the dollar has value? How much longer will it be before the American people realize there is never going to be a point in time when the government will not take steps to throw us off the cliff?

    • gerry

      It is a game and the losers are the Americans,they don’t even realise it yet.Must be really dumb.The Dollar is not worth much now.The government will not hesitate to throw you over the proverbial cliff.Remember Benghazi?

  • Dogfish

    I have to wonder what collateral the democrats offered for Chinese money. Could it possibly be our national park land?

    • gerry

      Don’t you worry there will be a heavy price to pay,and not only from the Chinese!

  • truebearing

    Putin schools Obama on American values. The Chinese bully our Congress on debt and fiduciary responsibility. Maybe Obama can find some former German concentration camp commandants to advise him on cost cutting measures for mass internment.

  • truebearing

    China is telling Congress how to handle its fiscal responsibility. Russia is running Obama’s foreign policy. Maybe Obama has found some WWII concentration camp commandants to advise him on cost cutting measures for mass internment.

    • gerry

      So much for the superpower!