Earlier today, China's premier expressed concern about its sizable holdings of Treasuries and U.S. debt. Premier Wen Jiabao asked America to safeguard the value of Treasuries, noting that China is ready to expand its stimulus if the economy gets worse.
According to Wen, China is the biggest foreign creditor to the U.S. -- causing the Premier to ask the U.S. to make sure that its response to the current economic environment doesn't harm the value of the Chinese holdings.
The Associated Press reports that analysts believe nearly half of China's $2 trillion in currency reserves are in U.S. treasuries. The Premier stated, "We have made a huge amount of loans to the United States. Of course we are concerned about the safety of our assets. To be honest, I'm a little bit worried." Wen added, "I would like to call on the United States to honor its words, stay a credible nation and ensure the safety of Chinese assets."
These statements precede President Obama's meeting with Chinese President Hu Jintao at the April 2 G-20 summit focusing on the global financial crisis in London.
A month ago, Secretary of State Hillary Clinton tried to reassure China that government debt would remain a solid investment -- especially since Washington needs China to keep buying Treasuries to fund the $787 billion stimulus.
After discussing our economy, Wen noted that China can emerge from its own crisis "at an early date." He added that the country stands ready to increase its own stimulus package, which totals $586 billion at the moment.
These statements precede President Obama's meeting with Chinese President Hu Jintao at the April 2 G-20 summit focusing on the global financial crisis in London.
A month ago, Secretary of State Hillary Clinton tried to reassure China that government debt would remain a solid investment -- especially since Washington needs China to keep buying Treasuries to fund the $787 billion stimulus.
After discussing our economy, Wen noted that China can emerge from its own crisis "at an early date." He added that the country stands ready to increase its own stimulus package, which totals $586 billion at the moment.
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Reader Comments (Page 1 of 1)
3-13-2009 @ 1:48PM
BHarrison said...
As the biggest creditor nad "investor' in the American economy, China can certainly exert some strong pressure on the US government.
This may evolve into some form of "poker playing" . . . calling each other's hands or bluffing each other for the financial advantage at any moment.
Once these things start, they can become unprecedented and difficult to stop.
This can and will dispaly emphasis on the fraigility of the American economy. madoff might not the only fraudster to fall. our CEOs have defrauded both our antion and the people of the USA . . . and created the global economic crisis. It WAS these CEOs who orchestrated and perpetuated this disaster . . . and nine out of ten of thesse S.O.B.s are STILL RUNNING those corporat=ions. They should be fired, indicted, prosecuted, and then have all of their ill gotten wealth seized and returned to the corporations from which they defrauded the monies.
These CORRUPT CEOs and the INEPT, INCOMPETENT, and/or totally CORRUPT Congressmen who enabled and allowed all of this to occur should be driven from office.
We need to have TERM LIMITS for Congressmen. That is the oNLY way to maintain the integrity of Congress.