China: Obama Has Failed To Defuse ‘Debt Bomb’; Chinese Govt Downgrades US Debt

Niccolo Machiavelli
Big Peace

BEIJING: China warned Wednesday that tortured efforts to raise the US debt ceiling had failed to defuse Washington’s “debt bomb”, and that it would further diversify its currency holdings away from the dollar.

US President Barack Obama finally signed an emergency austerity bill on Tuesday that averted what would have been a catastrophic debt default for the world’s biggest economy.

But a failure to rein in US borrowing could “jeopardise the well-being of hundreds of millions of families within and beyond the US borders”, the official Xinhua news agency said in a blistering commentary on the deal.

“The months-long tug of war between Democrats and Republicans…failed to defuse Washington’s debt bomb for good, only delaying an immediate detonation by making the fuse an inch longer,” the commentary said.

“Meanwhile, the madcap farce of brinkmanship has disclosed yet another ticking bomb in the heartland of the sole superpower in the world — the crippling tendency to politicise the economics while trivialising the politics.”

China, sitting on the world’s biggest foreign exchange reserves of around $3.20 trillion as of the end of June, is the largest holder of US Treasuries.

Xinhua’s comments came as China’s central bank said it would continue to diversify its foreign currency investments, signalling growing concerns in Beijing over the US debt crisis and economic downturn…

The article continues at Big Peace.

Related: Aircraft Carrier: Chinese Territory In Any Sea

…“With our naval strategy changing now, we are going from coastal defense to far sea defense,” Rear Adm. Zhang Huachen, deputy commander of the East Sea Fleet, said in an interview with Xinhua, the state news agency. According to experts, the Chinese navy receives more than one-third of the country’s overall military budget, reflecting the priority Beijing places on maintaining open sea lanes for resources and manufacturing as a vital element of national security.

The Chinese have been visiting ports far and wide, including the Gulf of Aden, the Phillipines and even battling Somali pirates on patrol. They are upgrading the carrier for ‘research and training’ purposes according to an article in the Washington Times


Update: Nh Tea Party Notes on Facebook,  Governors: Stop Partnering With Communist China’s State-Owned Corporations

Many U.S. governors are actively seeking to attract investment money from China’s state-owned corporations. In some cases they are using taxpayer-paid incentives to sweeten the deal. In order to expedite such investments, Secretary of State Hillary Clinton signed a Memorandum of Understanding with her counterpart from China on January 19, 2011 that established the U.S.-China Governors Forum. The first meeting of this forum was held July 15-17 in conjunction with the annual meeting of the National Governors Association in Salt Lake City. Some 20-30 U.S. governors took part in the forum. The next forum will be held in China in October…

…From the murder of John Birch, to the Cultural Revolution, to the Tiananmen Square Massacre, up to today when hundreds of thousands of Chinese all over China are in protest against the government and are being suppressed by the Peoples’ Liberation Army, a reign of terror by the Chinese communist government has existed.

The official policy of the Peoples’ Liberation Army is that America remains the enemy and it is their goal to defeat us.

Yet we see businessmen and politicians running to China for deals that, in the long run, hurt our economy and even threaten our freedom…

…If you agree that our U.S. governors should not be partnering with communist China’s state-owned corporations, contact your governor …

Update 2Pelosi: Raising Taxes Should Be Considered In ‘A Very Strong Way’

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