China and Japan warn US on default

China and Japan warn US on default


It sounds like China and Japan are getting restless and nervous about the U.S. debt problem.

Looks like they want *Their* interests to supersede *OUR* interests.

Hmmm.

Maybe it's high time *WE* place *OUR* interests in the #1 position for a change !!!!

Who are *THEY* to dictate American interests.

China and Japan ratcheted up pressure on the US to avoid an unprecedented US default on its debt as Democrats and Republicans continued their stand-off over the budget in the second week of a US government shutdown.

Two senior White House economic officials said on Monday that President Barack Obama would not back down from his refusal to negotiate with Republicans in Congress, increasing worries that the debt ceiling limit would be reached on October 17 without an agreement, raising the threat of a default. ..................

.......
Zhu Guangyao, vice-finance minister, told a media briefing that China has made clear its unease over the political impasse in Washington. In Japan, the Ministry of Finance is very worried about the potential impact on currency markets, according to a senior official. A US default could cause investors to dump the US dollar, which would sharply push up the value of the yen.

China and Japan warn US on default

ADDED; link to better source
China Urges US to Avoid Debt Crisis

We're gonna default sometime, might as well get it over with.

xuenchen
China and Japan warn US on default


It sounds like China and Japan are getting restless and nervous about the U.S. debt problem.

Looks like they want *Their* interests to supersede *OUR* interests.

Hmmm.

Maybe it's high time *WE* place *OUR* interests in the #1 position for a change !!!!

Who are *THEY* to dictate American interests.

China and Japan ratcheted up pressure on the US to avoid an unprecedented US default on its debt as Democrats and Republicans continued their stand-off over the budget in the second week of a US government shutdown.

Two senior White House economic officials said on Monday that President Barack Obama would not back down from his refusal to negotiate with Republicans in Congress, increasing worries that the debt ceiling limit would be reached on October 17 without an agreement, raising the threat of a default. ..................

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Zhu Guangyao, vice-finance minister, told a media briefing that China has made clear its unease over the political impasse in Washington. In Japan, the Ministry of Finance is very worried about the potential impact on currency markets, according to a senior official. A US default could cause investors to dump the US dollar, which would sharply push up the value of the yen.

China and Japan warn US on default

So the us borrows money in a currency that it prints itself? How did these other countries not see the ramifications of such debt.

That'd be like me borrowing money from someone that I printed up using my own paper and ink...that I then decide when and how to print. Let's just say the person loaning me such funds wouldn't be in the greatest position to say much of anything.

Of course at any moment if China strikes a deal with any other country that isn't doing those shady practices say, the European union that is now being propped up as the possible future petro base...well then...America loses it's nice hammer of currency abuse.

rangerdanger
We're gonna default sometime, might as well get it over with.

You cannot default on loans made in currency that you yourself print. It is impossible. Of course hyperinflation might occur, but never will the U.S. "default".

You know, if the US does default (which it will have to do sooner or later)... The US Government should have the same restrictions placed on them like a normal bankrupt classed citizen.

Not more loans for X amount of years and if you earn Y in Z years, you then have to start paying off said defaulted debt.

Sounds fair to me... But we all know that won't happen.

But then does it mean the US Government will set a precedence for its populous?

reply to post by xuenchen

Who are *THEY* to dictate American interests.

Actually the question is kind of backwards what you should be asking are who the hell do Americans think "they" are to dictate the interests of other states as America defaulting on its debt is not just a American problem but a global one. Thinking that American economic problems are just America is just flat out wrong, this is a problem of global proportions if America was to default on its debt it would have just as much effect on the average American as it would have on the average Chinese man in time.

I often think this is a element of the debate that is hugely neglected it is not a national problem but a international problem. As such other state actors are quite right to make their interests heard and encourage the American government not to default on its debts.

So you might see it as "them" dictating American interests but rather it is just them dictation the global interests as you can bee assured that those in Europe and other BRICK states will be urging much of the same of American politicians. After all with billions invested in America plc they have every right to make moves to ensure they get a return on their investment

Your link is good but I cannot read the article, unless I sign up.

Anyways I do believe that someone whom is holding your debt has a definite interest in how you spend your money and where you spend it.

If I loan someone $50.000 dollars with the understanding they are going to be good for the debt and repay it I would expect just that.

But if that person suddenly starts acting irrationally and spending here there and everywhere but not on my debt owed I would be a little upset yes.

Now if they were spending that money recklessly and their funds are limited to my debt (No more borrowing, Government shut down) I would be inclined to tell them how to manage their money.

Actually I would demand my money back ASAP.

Lucky for the States that they are just warning them instead of calling in the Debts.
If that happened tonight, your worst nightmare has come true.

Regards, Iwinder

If we raise the debt ceiling, their dollar holdings will continue to decrease in value.

If we default, they don't get interest payments.

Which is worse?

Guess they'll decide to buy up as much of America, gold, and oil as they can with their dollars?

OrphanApology

rangerdanger
We're gonna default sometime, might as well get it over with.

You cannot default on loans made in currency that you yourself print. It is impossible. Of course hyperinflation might occur, but never will the U.S. "default".

That's where you are wrong... The US Government doesn't print its own currency.
The Federal Reserve does and the Fed Reserve is a privately owned company that is contracted to the US Government for said printing.

So in actuality, the US Government is loaning the money from a private bank that has the Authority to print US currency from the US Government.

Wonderful situation good 'ole Woodrow put all you Americans in huh?

China just needs to threaten that they'll finally release all their UFO files or else. They already virtually did it at the Disclosure Hearing a few months ago.

Whaddaya think the US Gov will do once the whole world knows what F'in liars they are? About everything?

But hey, between 9-11 truth and UFO truth, at least the networks will have great ratings for months afterwards, while all the sheeple's heads explode.

It won't be allowed to happen. It cannot be allowed to happen unless we just plan on pushing the reset button and figuring out who the world's next powers are gonna be with hollow points.

Too much risk involved. They'll settle it somehow.

Sovaka

OrphanApology

rangerdanger
We're gonna default sometime, might as well get it over with.

You cannot default on loans made in currency that you yourself print. It is impossible. Of course hyperinflation might occur, but never will the U.S. "default".

That's where you are wrong... The US Government doesn't print its own currency.
The Federal Reserve does and the Fed Reserve is a privately owned company that is contracted to the US Government for said printing.

So in actuality, the US Government is loaning the money from a private bank that has the Authority to print US currency from the US Government.

Wonderful situation good 'ole Woodrow put all you Americans in huh?

Again it will never "default". Hyperinflation would happen as a result of too much money being printed but never "default". Not going to happen. Regardless of who owns the federal reserve it's currency is still "U.S." currency with nothing backing it up but a puff of smoke and false promises. Please explain how you believe the U.S. would default if it has taken loans in U.S. currency that has no promise on it's own value?

Treasury bills are the standard for the risk-free rate and have nothing besides a promise of the U.S. government. Promise of what exactly? What is 2% of 0?

I'm just curious as to how you would explain a default on debt issued in a currency that has no standard as to it's own value.

reply to post by xuenchen

Who are *THEY* to dictate American interests.

THEY are countries we owe a lot of money too!

Another reason the Japanese economy remains so stable is that Japan is heavily invested in U.S. debt securities, some of the most financially sound investments in the world. The only foreign country that lends more money to America is Japan's massive neighbor to the West, and No. 2 on our list: China.

Source

reply to post by Iwinder


I see. added to OP;

link to better source
China warns U.S. debt-default idea is "playing with fire"

xuenchen
reply to post by Iwinder

 

I see. added to OP;

link to better source
China warns U.S. debt-default idea is "playing with fire"

Thanks very much for that link,
Now I have a better understanding of why China especially is so up set with the States at this point in time.

China is the largest foreign creditor to the United States, holding more than $1 trillion in Treasury debt as of March, U.S. data shows, so its concerns carry considerable weight in Washington. "I really worry about the risks of a U.S. debt default, which I think may lead to a decline in the dollar's value," Li said. Congress has balked at increasing a statutory limit on government spending as lawmakers argue over how to curb a deficit which is projected to reach $1.4 trillion this fiscal year. The U.S. Treasury Department has said it will run out of borrowing room by August 2. If the United States cannot make interest payments on its debt, the Obama administration has warned of "catastrophic" consequences that could push the still-fragile economy back into recession.

Regards, Iwinder

reply to post by OrphanApology


Because the entirety of the US Debt isn't due to it's own inflation of printed US currency.

There is quite a large portion owned to other countries that have bought said currency.
I don't know the economic term but its basically how the world is run.
It's kind of like investments that other countries buy into so that the US can get income... like selling shares.

reply to post by Iwinder


China could have pulled the plug on the U.S economy at any time , but they haven't , why?
The Chinese are very cautious people and they are also brilliant at waging financial wars , they have learned that more profit and ultimate power is to be made by acquisition of goods than by military assimilation of any country, which America has still to learn that it will bankrupt you eventually.

They just play a better chess game than the U.S , who is still battling with its pawns to gain ground , while they use their Knights and castles to conquer the world.

reply to post by xuenchen


Maybe the local powers are thinking this is a good time to hit the reset. It will absolutely hurt the US but it would smash the hell out of the global economies. Then the US goes turtle on everything/everyone and reissues silver or gold notes (if we have any gold.)

Just a thought but if I was a paranoid central government that believed the world was out to get me it's not a far stretch. Hit reset and outlast everyone else. Might even work.

Sovaka
reply to post by OrphanApology

 

Because the entirety of the US Debt isn't due to it's own inflation of printed US currency.

There is quite a large portion owned to other countries that have bought said currency.
I don't know the economic term but its basically how the world is run.
It's kind of like investments that other countries buy into so that the US can get income... like selling shares.

I don't know what you're trying to explain. Please be more specific or show me an article explaining your point. The information you just posted is nonsensical.

reply to post by Pinkorchid

Agreed, I also read on here or a news site that China and Russia threatened to call in their debts if the US invaded Syria.

It was constant attack attack on the news sites then it went deathly quiet, same thing with Iran Last year ........Identical.....

Somebody played a good game of chess indeed.

Regards, Iwinder