Pissed-Off Sugar Daddy China Says Obama ALREADY Defaulting On Debt

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.

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4 Responses to “Pissed-Off Sugar Daddy China Says Obama ALREADY Defaulting On Debt”

  1. Truth Unites... and Divides Says:

    “if we are to prevent a massive economic implosion that will make 2008 or even the Great Depression look like heaven.”

    When does an “if” become a “when”?

    Another Q: is the probability of terrible economic straits greater than 50% according to subjective guessing?

    I’m leaning towards a “Yes” personally. But hoping that I’m terribly mistaken.

  2. Michael Eden Says:

    Truth,

    When a complex system comes crashing down is always nothing more than a guess. There are too many variables.

    That said, with our TRUE debt at something approaching $200 trillion, we are a dead man walking.

    A quote from that article provides the reason why we can’t know when the system will completely collapse:

    Prof. Kotlikoff doesn’t trust government accounting, or government regulation. The official vocabulary (deficit, debt, transfer payment, tax, borrowing), he says, is vulnerable to official manipulation and off-the-books deceit. He calls it “Enron accounting.” He also calls it a lie.

    So, take Enron. The thing was an illegitimate monster, but “clever” accounting was able to HIDE the fact that Enron was actually bankrupt many times over.

    It was only a matter of enough people understanding the reality that Enron was trying to hide.

    With a government, the level of deceit is FAR worse. Any private business that engaged in activities common in our Social Security system WOULD GO TO PRISON. The Social Security system makes Bernie Madoff’s ponzi scheme appear tame in comparison. Which is to say, what would be criminal anywhere else is common in government today.

    When the US collapses, it will happen fast – too fast for all but a few to have a plan unless they already had a plan and had already made all the arrangements. It wil collapse like something rotten from the inside.

    The US collapse will create a worldwide collapse. Our system is far too big not to collapse all the other systems, and it is too big to “fix.”

    And then the Antichrist will ultimately come. It’s as simple as that.

    I’m looking at it and saying it can’t last 20 more years; it is too broken, too corrupt – and Democrats won’t LET it get fixed. [Btw, in addition to our Social Security, Medicare and Medicaid insolvencies, add all the state public pensions that are EACH billions in the hole in unfunded liabilities; California alone is $500 BILLION in the hole]. But I can’t say “five years” or give a really precise timelime because a) the capacity for corrupt bureaucrats to hide the truth and b) the endless capacity of idiots to buy the lies makes it impossible to guess.

  3. Truth Unites... and Divides Says:

    “But I can’t say “five years” or give a really precise timelime because a) the capacity for corrupt bureaucrats to hide the truth and b) the endless capacity of idiots to buy the lies makes it impossible to guess.”

    I heartily agree. The “endless capacity of idiots to buy the lies” galls me to no end.

    P.S. Is it possible to correspond via e-mail? If so, can you send me an e-mail?

  4. Michael Eden Says:

    Yes. I have your email. I’ll send you mine via email.

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