More from China on the Obama borrowing plans
A Democrat and a Republican went to China. Straits Times:
‘We heard across the board — in private — substantial, continuing and rising concern,’ Representative Mark Kirk said after a trip to China that included talks with senior officials and central bank chief Zhou Xiaochuan. ‘It’s clear that China would like to diversify from its dollar investments,’ the Republican lawmaker said…
Representative Rick Larsen, a member of President Barack Obama’s Democratic Party…agreed that Chinese leaders were looking for a signal from the United States on its deficit in what he said was a ‘wake-up call’ for Congress to tame borrowing…
Mr Kirk said that Chinese leaders were sharply critical in private of the US Federal Reserve’s policy of ‘quantitative easing‘ — a form of flooding the financial system with cash, which critics deride as printing imaginary money.
Cances are that pretty soon China is going to have to dispense with private meetings and indirect suggestions in order to convince the Congress and the administration that it is serious. (HT Polipundit)
June 10th, 2009 at 11:00 am
Come on. How are the Chinese going tio stop the US from turning the presses. They’ll get their dollars back, but these dollars will be worth a lot less than they expected.
June 11th, 2009 at 3:05 am
It’s simple, they won’t lend us any more money, or they’ll insist on being paid back in Euros or Yen, or oil or gold… Google Gresham’s Law.
If the government insists on making the dollar worthless, MY assets aren’t going to be dollar denominated either.