Big bad-assed "America's Landlord" China now on its KNEES begging us not to default.

[LJ_Reloaded]

Big bad-assed "America's Landlord" China now on its KNEES begging us not to default.

http://anonym.to/?http://world.time.com/2013/10/09/china-to-united-states-dont-default-for-our-sake/

China to United States: Don’t Default, For Our Sake

One day after Republican House Speaker John Boehner promised to “stand and fight” over the budget, Chinese officials have pleaded with America’s deadlocked Congressmen to stand down. “The clock is ticking,” Chinese Vice Finance Minister Zhu Guangyao warned on Monday. “We ask that the United States earnestly takes steps to resolve in a timely way the political issues around the debt ceiling.”

And what if the clock runs out? Then China, the U.S.’s biggest creditor, will be left holding the bag. Its government holds $1.3 trillion in U.S. Treasury bonds and a whopping $3.5 trillion in dollar-denominated assets. It has racked up these holdings through an export-oriented trade policy, by which China sells goods and services to the U.S. and gets dollars in return. China then plows those dollars into the world’s safest investment, the U.S. Treasury bond.

That suited everyone just fine until the Treasury began ringing the alarm bell about a possible default on October 17th. A default could wreak havoc on the value of China’s dollar-backed assets. A huge portion of China’s wealth depends on the U.S.’s ability to pay down its loans.

 

[Squibbs]

Maybe because your economy affects everyone?

I'm having a good year, I don't need you fucking jackasses to mess with it.

 

[phrodeau]

We will say KNEE to you if you do not appease us!

 

[VaticanAssassin]

In a memo being circulated on Capitol Hill Wednesday, Moody’s Investors Service offers “answers to frequently asked questions” about the government shutdown, now in its second week, and the federal debt limit. President Obama has said that, unless Congress acts to raise the $16.7 trillion limit by next Thursday, the nation will be at risk of default.

Not so, Moody’s says in the memo dated Oct. 7.

” We believe the government would continue to pay interest and principal on its debt even in the event that the debt limit is not raised, leaving its creditworthiness intact,” the memo says. “The debt limit restricts government expenditures to the amount of its incoming revenues; it does not prohibit the government from servicing its debt. There is no direct connection between the debt limit (actually the exhaustion of the Treasury’s extraordinary measures to raise funds) and a default.

 

[phrodeau]

In a memo being circulated on Capitol Hill Wednesday, Moody’s Investors Service offers “answers to frequently asked questions” about the government shutdown, now in its second week, and the federal debt limit. President Obama has said that, unless Congress acts to raise the $16.7 trillion limit by next Thursday, the nation will be at risk of default.

Not so, Moody’s says in the memo dated Oct. 7.

” We believe the government would continue to pay interest and principal on its debt even in the event that the debt limit is not raised, leaving its creditworthiness intact,” the memo says. “The debt limit restricts government expenditures to the amount of its incoming revenues; it does not prohibit the government from servicing its debt. There is no direct connection between the debt limit (actually the exhaustion of the Treasury’s extraordinary measures to raise funds) and a default.

It sure made a difference in 2011, and the US didn't actually fail to raise the debt limit then.

 

[VaticanAssassin]

It sure made a difference in 2011, and the US didn't actually fail to raise the debt limit then.

and that downgrade had much more to do with the actual numbers than the threat of a shutdown. Despite what petty "let's sue The S&P" administration would have you think.