Sugar daddy China has already learned that it is not a good investment to keep funding America’s (mostly Democrat’s, fwiw) reckless spending. Which is to say, who we going to beg money from now???
China is pissed.
Mind you, Obama’s answer to China could be, “Yes, I’m screwing you. But keep in mind, I’m screwing the American people even more. It’s their money I’m making worthless, after all.”
This is a typical example of a story that comes out in the Friday dump. The government always releases its most embarassing stuff before the weekends when no one’s paying attention. And, of course, the mainstream media which is determined to protect their messiah reliably follows suit.
That way, they don’t have to seriously cover the damage that Obama has done to the U.S. dollar.
China ratings house says US defaulting: report
AFP – Fri, 10 Jun, 2011
A Chinese ratings house has accused the United States of defaulting on its massive debt, state media said Friday, a day after Beijing urged Washington to put its fiscal house in order.
“In our opinion, the United States has already been defaulting,” Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., the only Chinese agency that gives sovereign ratings, was quoted by the Global Times saying.
Washington had already defaulted on its loans by allowing the dollar to weaken against other currencies — eroding the wealth of creditors including China, Guan said.
Guan did not immediately respond to AFP requests for comment.
The US government will run out of room to spend more on August 2 unless Congress bumps up the borrowing limit beyond $14.29 trillion — but Republicans are refusing to support such a move until a deficit cutting deal is reached.
Ratings agency Fitch on Wednesday joined Moody’s and Standard & Poor’s to warn the United States could lose its first-class credit rating if it fails to raise its debt ceiling to avoid defaulting on loans.
A downgrade could sharply raise US borrowing costs, worsening the country’s already dire fiscal position, and send shock waves through the financial world, which has long considered US debt a benchmark among safe-haven investments.
China is by far the top holder of US debt and has in the past raised worries that the massive US stimulus effort launched to revive the economy would lead to mushrooming debt that erodes the value of the dollar and its Treasury holdings.
Beijing cut its holdings of US Treasury securities for the fifth month in a row to $1.145 trillion in March, down $9.2 billion from February and 2.6 percent less than October’s peak of $1.175 trillion, US data showed last month.
Foreign ministry spokesman Hong Lei on Thursday urged the United States to adopt “effective measures to improve its fiscal situation”.
Dagong has made a name for itself by hitting out at its three Western rivals, saying they caused the financial crisis by failing to properly disclose risk.
The Chinese agency, which is trying to build an international profile, has given the United States and several other nations lower marks than they received from the the big three.
If you’ve got money in the bank, your money is worth substantially less than it was just a few years ago.
Obama made sure of that.
So we can point fingers at China - whom no one should like because it’s a mean, nasty communist country (albeit less communist than we are now under Obama) – and laugh. But when we point a finger at them, three fingers are pointing back at ourselves.
Your dollar is worth dramatically less under Obama. The number of dollars you have to shuck out to buy the same amount of gas, of food, of prettty much everything, has skyrocketed. Your dollar is worth less.
And it’s likely going to get much, MUCH worse. Because Obama is truly an enemy of a strong, stable America.
Stop and think about it. Remember that massive $870 (it really cost taxpayers $3.27 TRILLION, but who is seriously counting anymore?) billion stimulus Obama shoved through Congress entirely on Democrat votes? We are now at the point where we’re going to be paying the equivalent of an Obama stimulus PLUS every single year in interest payments - mostly to China. We’re beyond broke; we’re a dead Dodo bird walking. But Democrats won’t cut ANYTHING, and shrilly demonize Republicans for cutting even a tiny fraction of what is necessary if we are to prevent a massive economic implosion that will make 2008 or even the Great Depression look like heaven.