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Rep. Kirk: "China has canceled America's credit card"

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posted on May, 3 2009 @ 06:58 PM
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Remember, all China has to do to cripple the US is SIMPLY TO SLOW ITS RATE OF PURCHASE to a certain amount, and the day-to-day financing of the goverment (for stuff like, you know, heating the White house or vaccuming the floor of the Senate, to say nothing of the military, social security, and all other federal programs) would grind to a near-halt. They don't even have to unload the debt they have to do this...just stop or dramatically slow the rate of purchasing.

Is this what we're seeing now? Hard to say, but one thing's for sure, one way or another, sooner or later (sooner, probably), that day is approaching.



China, wary of the troubled US economy, has already "canceled America's credit card" by cutting down purchases of debt, a US congressman said Thursday.

China has the world's largest foreign reserves, believed to be mostly in dollars, along with around 800 billion dollars in US Treasury bonds, more than any other country.

But Treasury Department data shows that investors in China have sharply curtailed their purchases of bonds in January and February.

Representative Mark Kirk, a member of the House Appropriations Committee and co-chair of a group of lawmakers promoting relations with Beijing, said China had "very legitimate" concerns about its investments.

"It would appear, quietly and with deference and politeness, that China has canceled America's credit card," Kirk told the Committee of 100, a Chinese-American group.

"I'm not sure too many people on Capitol Hill realize that this is now happening," he said.



More at source:

rawstory.com...




posted on May, 3 2009 @ 07:07 PM
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This is a major step toward the devaluation of the U.S. dollar. This will eventually slow our imports down to a trickle. Not going to be good,that's for sure.



posted on May, 3 2009 @ 07:08 PM
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The Chinese are not nearly as smart and intelligent as they appear. They should have done this years ago. Instead they've created this symbiotic relationship with the US where as they depend on our consumption as much as we depend on them buy our debt. They are idiots if you ask me. Their economy is probably going to start to tank worse than ours. They have ten times as many people as we do. We could go back to an isolationist mentality and still survive. We have tons of natural resources and lots and lots of land. China wouldn't be able to feed their people without trade.



posted on May, 3 2009 @ 07:09 PM
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reply to post by silent thunder
 


Who in their right mind would keep buying our debt or hold US dollars with the way our government spends and prints new money. This is a no brainer and we have no one to blame but ourselves and our government.



posted on May, 3 2009 @ 07:38 PM
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Originally posted by daddyroo45
This is a major step toward the devaluation of the U.S. dollar. This will eventually slow our imports down to a trickle. Not going to be good,that's for sure.


Yep.


Originally posted by Zosynspiracy
The Chinese are not nearly as smart and intelligent as they appear. They should have done this years ago...


Agreed.

But its important to remember that while the Chinese communist party does have a great deal of control over things in China, there are competing power blocs within it, and within the business world, plus the whole seamy underbelly of corruption, organized crime, etc. As is true elsewhere, the polices in place are often the result of compromises, short-term thinking, collisions of competing agendas, and so on. Even if they wanted to, they can't plan that far ahead or with such precision. Neither can "we" or anyone else. Of course, this isn't a reason to absolve people of responsibility or "give up," and history can be given nudges, but its still important to remember this.


Originally posted by justsomeboreddude
reply to post by silent thunder
 


Who in their right mind would keep buying our debt or hold US dollars with the way our government spends and prints new money. This is a no brainer and we have no one to blame but ourselves and our government.


Yep. Were idjits fer sure, just like them. See also response above to Zosynspiracy.





[edit on 5/3/09 by silent thunder]



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