China angered and claims US defaulting on giganormous debt - US remains in silence.

[sephodwyrm]

http://ca.news.yahoo.com/china-ratin...054309883.html

China ratings house says US defaulting: report

A Chinese ratings house has accused the United States of defaulting on its massive debt, state media said Friday, a day after Beijing urged Washington to put its fiscal house in order.

"In our opinion, the United States has already been defaulting," Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., the only Chinese agency that gives sovereign ratings, was quoted by the Global Times saying.

Washington had already defaulted on its loans by allowing the dollar to weaken against other currencies -- eroding the wealth of creditors including China, Guan said.

Guan did not immediately respond to AFP requests for comment.

The US government will run out of room to spend more on August 2 unless Congress bumps up the borrowing limit beyond $14.29 trillion -- but Republicans are refusing to support such a move until a deficit cutting deal is reached.

Ratings agency Fitch on Wednesday joined Moody's and Standard & Poor's to warn the United States could lose its first-class credit rating if it fails to raise its debt ceiling to avoid defaulting on loans.

A downgrade could sharply raise US borrowing costs, worsening the country's already dire fiscal position, and send shock waves through the financial world, which has long considered US debt a benchmark among safe-haven investments.

China is by far the top holder of US debt and has in the past raised worries that the massive US stimulus effort launched to revive the economy would lead to mushrooming debt that erodes the value of the dollar and its Treasury holdings.

Beijing cut its holdings of US Treasury securities for the fifth month in a row to $1.145 trillion in March, down $9.2 billion from February and 2.6 percent less than October's peak of $1.175 trillion, US data showed last month.

Foreign ministry spokesman Hong Lei on Thursday urged the United States to adopt "effective measures to improve its fiscal situation".

Dagong has made a name for itself by hitting out at its three Western rivals, saying they caused the financial crisis by failing to properly disclose risk.

The Chinese agency, which is trying to build an international profile, has given the United States and several other nations lower marks than they received from the the big three.

Pay up, guys.
Give us cash.

[MathiasOfAthens]

F U China.

[GrnEyedDvl]

While I agree there is a debt problem, the solution is not to cut military spending. At least not the entire solution. That is only 20% of the budget, so even if you eliminated it entirely, we are still deficit spending.

http://en.wikipedia.org/wiki/File:GAO_Slide.png

[Simon Cashmere]

While I agree there is a debt problem, the solution is not to cut military spending. At least not the entire solution. That is only 20% of the budget, so even if you eliminated it entirely, we are still deficit spending.

http://en.wikipedia.org/wiki/File:GAO_Slide.png

It isn't the entire solution that is right, but, closing most overseas bases would help.

Paul Ryan's budget proposal is a good one.

Spoiler Alert, click show to read: 

http://paulryan.house.gov/UploadedFi...rityFY2012.pdf

Whether you disagree with Paul Ryan or not, what the US government cant do is keep spending money it doesn't have, by borrowing from overseas lenders, many of whom are hostile to America's interests.

But vested special interests and careerism, go ahead of the national interest, almost every time. No one in Washington wants to cut spending, or most don't - so they will all go down on the ship of fools.

[Sir Winston Churchill]

It isn't the entire solution that is right, but, closing most overseas bases would help.

Paul Ryan's budget proposal is a good one.

Spoiler Alert, click show to read: 

http://paulryan.house.gov/UploadedFi...rityFY2012.pdf

Whether you disagree with Paul Ryan or not, what the US government cant do is keep spending money it doesn't have, by borrowing from overseas lenders, many of whom are hostile to America's interests.

But vested special interests and careerism, go ahead of the national interest, almost every time. No one in Washington wants to cut spending, or most don't - so they will all go down on the ship of fools.

Huh, I guess Ryan isn't so far from the tree afterall. I enjoy it when as a Democrat I can like a Republican more than my own party's president.

[Big War Bird]

China is accusing the US of currency manipulation? That's rich.

[the_mango55]

China is accusing the US of currency manipulation? That's rich.

Ditto

[Exarch]

i just kept laughing cuz i know this is going to balloon to like 9 pages and involve military hardware comparisons,

but ok, in all seriousness; the defence budget is whoppingly huge-so much more than either russia or china or russia/china combined or the next 15 countries combined for that matter

[Big War Bird]

American aircraft carriers are longer than Chinese aircraft carriers, if you know what I mean.

Chinese economist ought to have know that exchange rate fluctuations are an inherent risk in international finance. That's first year business school stuff.

Before anyone jumps down my throat, I know they know that too.

[Exarch]

to be fair, dagong isn't the only rating agency downgrading the US
s&p and moody's have said they're going to be forced to downgrade the US economy if the president and the republican held house dont come to terms with the debt ceiling

[sephodwyrm]

is only 20% of the budget, so even if you eliminated it entirely, we are still deficit spending.

It'll be a great start.

s&p and moody's have said they're going to be forced to downgrade the US economy if the president and the republican held house dont come to terms with the debt ceiling

Especially when they see the Chinese dumping US debts...
Defaulting on loans is theft. Especially unjustified when a war of freedom is being waged over Lybia, making it robbery of A and theft of B.

Will the US ever act responsibly in terms of cash? Or have the sharks of Wall Street taken over your government?

[charles the hammer]

It'll be a great start.

It wont happen though.

Especially when they see the Chinese dumping US debts...
Defaulting on loans is theft. Especially unjustified when a war of freedom is being waged over Lybia, making it robbery of A and theft of B.

Will the US ever act responsibly in terms of cash? Or have the sharks of Wall Street taken over your government?

As far as I know we arent defaulting. What he is describing isnt defaulting to my (admittedly limited) knowledge. I am also kind of annoyed they do something like this. Just think the hissy fit TWC would pull if the US did this to china.

[GrnEyedDvl]

It'll be a great start.

I guess that depends on your point of view. I think it would be a terrible start.

Especially when they see the Chinese dumping US debts...
Defaulting on loans is theft.

Yes, that is why we put all those people who defaulted on their homeloans in jail instead of bailing them out.

Oh wait...

Will the US ever act responsibly in terms of cash? Or have the sharks of Wall Street taken over your government?

While there have definitely been some Wall Street issues, social spending dwarfs it all.

[Principe Alessandro]

In reality the military has little to do with the US deficit, I think that the main problem is the high inefficiency of the state and of some of the services it runs.

[charles the hammer]

In reality the military has little to do with the US deficit, I think that the main problem is the high inefficiency of the state and of some of the services it runs.

That is our main issue, though military could use some cuts or I guess fat trimming would be a better way to put it.

[Caelius]

What Principe said.

The reality of things is that the US defense budget is relatively tiny compared to the amount of money the US Government spends (inefficiently) on entitlement programs.

Most of the calls for the US to lower its defense budget largely come from those parties, proxies, and actors who have an inherent interest in seeing a reduced US military posture. Something that just isn't going to happen while the operations in the Middle East and Central Asia continue.

[sephodwyrm]

I am also kind of annoyed they do something like this.

Do what? Complain about a financially irresponsible country that is taking 0 measures in reducing deficit spending?

People in Taiwan are affected by the humongous debt of the US.
In many ways, we're paying for it as well, given that we're a under-the-tables US satellite.


Only warning. Do not bypass the censor again.
GrnEyedDvl

[charles the hammer]

Do what? Complain about a financially irresponsible country that is taking 0 measures in reducing deficit spending?

Well yes, especially for the specific reasoning, making it a little hypocritical. I mean if the US pulls something like this then they are dicks, but China can do stuff like this and everyone is like well good point.

[Exarch]

the price of gold's higher than seth rogen doing 'pineapple express II'

why doesn't the USG sell off some or its gold,

[Pyrich]

the price of gold's higher than seth rogen doing 'pineapple express II'

why doesn't the USG sell off some or its gold,

We did some. To China, then they started getting all upset because about 10-15% of the gold was fake.