Ruh-Roh, Robama!
Don’t look now, but Barack’s banker may be blinking.
We wrote the other day about how China was questioning America’s ability to pay back its loans, and yesterday those concerns took a very public turn.
From Bloomberg:
The U.S. sought to ease Chinese Premier Wen Jiabao’s concern about the security of his country’s investments in U.S. government debt, reiterating pledges to cut the budget deficit in half in four years.
“There’s no safer investment in the world than in the United States,” White House Press Secretary Robert Gibbs said yesterday at a briefing in Washington.
Gibbs was responding to comments from Wen that China, the U.S. government’s largest creditor, is “worried” about its holdings of Treasuries and wants assurances that the investment is safe. “I request the U.S. to maintain its good credit, to honor its promises and to guarantee the safety of China’s assets,” Wen said at a press briefing in Beijing.
Ruh-row.
Without China buying American debt, Obama is effed.
Oh, and Nancy Pelosi will probably have to start flying commercial instead of on a G-5.
Comments
By Ron on March 14th, 2009 at 12:34 pm
China should be worried about their dangerous over investment in US Treasury obligations. Washington ’s long-term choice is either repudiation or monetization. For monetization to be effective, the depreciation in the dollar would have to be substantial and this in turn would dramatically raise prices of imports for American consumers which would mean a tremendous drop in foreign imports. Debt monetization would cause more disruption to exporting nations than selective repudiation of Treasury debt.
Washington has bailed out the banks, Wall Street & their Washington special interests and much of the cost is added to the national debt to by paid by this and future generations while real estate and investments continue to fall. Find out what a growing repudiate the debt movement could mean for treasury bonds, the dollar, gold and the stock market.
The Campaign to Cancel the Washington National Debt By 12/22/2013 Constitutional Amendment is starting now in the U.S. See: http://www.facebook.com/group.php?gid=67594690498&ref=ts
Thanks,
Ron
By Pat Hendrix on March 14th, 2009 at 12:52 pm
Man, you boys sure don’t like to read or use facts. The Chinese have no place else to put their money. Euros? No prayer, the EU is in worse shape than we are and holding more debt balanced against GDP than the US. The Yen? It will be cold day in hell before that happens? Asian markets? Please. Brazil? Snicker.
Grow up. This amounts to zip. Besides, since the stock market is so bad, Americans are already purchasing most of the bonds. Again, fact free at fits.