Chinese Premier Wen Jiabao's comments on Friday were blunt and pointed. In effect, the U.S. Treasury and the Federal Reserve absolutely must assure China on the safety of its investment in the United States. If we read between the lines, Mr. Wen told the U.S. that it must shore up its financial mess and that China will not stand for any more uncertainty in the U.S. banking sector.
The Chinese government is the largest holder of U.S. public debt. Officials in China are becoming increasingly concerned about the sharp increase in U.S. government spending. They worry it will lead to inflation and the collapse of the U.S. dollar.
Mr. Wen said directly: "We have a huge amount of money in the United States. Of course we are concerned about the safety of our assets." Such was the force of Mr. Wen's words that President Obama publicly sought to allay China's fears.
In other matters, Mr. Wen pledged to go beyond the $584 billion dollar stimulus put in place earlier this year. Mr. Wen said that "China has contingency plans to handle greater difficulties." China has pledged 8% economic growth this year. The government said it will run a 3% budget deficit this year to finance stimulus measures.
Finally, Mr. Wen resisted the notion that China make larger contributions to the International Monetary Fund.
What are your thoughts on this matter?
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Reader Comments (Page 1 of 1)
3-15-2009 @ 11:18AM
thedude said...
233 years ago our forefathers began a campaign to free the newly forged United States of America from the bondage of another government. Today, with the help of groundwork laid by Bill Clinton, Barack Obama and Hillary Clinton are completing the deal to sell the US to the Chinese government and place us all as subserviants to a communist regime.
It is time for the US to stand up again - declare all commerce with China illegal, and any "debt" owed to China as null and void. If the US government is unwilling to take this action, then it is left in the hands of the citizens.
I say that if China is trying to exert it's economic power and force the US to accept those cheap lead infused Chinese products then it is time for the US to use it's military and scientific might to start exporting our Plutonium infused nuclear weapons to China
Q- What do you call 1 billion dead Chinese ?
A- A good start !
There comes a time in every Patriots life when he must defend his country from his government. That time is at hand.
3-15-2009 @ 11:49AM
ownpoweredbyvtec said...
wow you are a douchebag
3-15-2009 @ 12:07PM
x Shadow said...
>.> wow...wtf!?!?!
what a rere comment mister
3-15-2009 @ 11:07PM
Admin said...
For China stock market news and China business information, see: http://www.chinastockmarket.org/
3-15-2009 @ 12:49PM
boston006 said...
China has a point here, when one Takes money from another Country you must know that there are Strings attached. Wake Up America before it's Too Late.
3-15-2009 @ 1:44PM
Judy Beaudoin said...
boston006 has a good point. Any saavy loan agent would require evidence of solvency - and WE Americans are not looking like a viable borrower.
Until we suck it up and have faith in ourselves, we cannot expect others to want to shore us up.
In essence, pay your bills, save a percentage of your income and then spend some - fear of purchasing anything is putting all of us out of work - get it?
3-16-2009 @ 2:02PM
investmentsthatwork said...
America made the mess America needs to fix it.
3-17-2009 @ 12:07AM
blogs11111 said...
I figured this was coming. Who could blame them? How long should they be expected to finance our deficits. Look what happened to the old Soviet Union, they defaulted.
3-24-2009 @ 11:28AM
dphelps3 said...
As we will default. There is no way that we can keep spending at the rate we are for much longer.