China has ‘canceled US credit card’: lawmaker
WASHINGTON (AFP)
China, wary of the troubled US economy, has already “canceled America’s credit card” by cutting down purchases of debt, a US congressman said Thursday.
China has the world’s largest foreign reserves, believed to be mostly in dollars, along with around 800 billion dollars in US Treasury bonds, more than any other country.
But Treasury Department data shows that investors in China have sharply curtailed their purchases of bonds in January and February.
Representative Mark Kirk, a member of the House Appropriations Committee and co-chair of a group of lawmakers promoting relations with Beijing, said China had “very legitimate” concerns about its investments.
“It would appear, quietly and with deference and politeness, that China has canceled America’s credit card,” Kirk told the Committee of 100, a Chinese-American group.
“I’m not sure too many people on Capitol Hill realize that this is now happening,” he said.
The Republican lawmaker said that China was justified in concerns about returns from finance giants Fannie Mae and Freddie Mac, which were bailed out by the US government due to the financial crisis.
Kirk said he was the first member of Congress to tour the Bureau of Public Debt, which trades bonds, and was alarmed at how much debt was being bought by the US Federal Reserve due to absence of foreign investors.
“There will come a time where the lack of Chinese participation may have a significant impact,” Kirk said.
“We should track that, because up until last month they were the number one provider of currency to the United States and now they’re gone.”
With China’s economy also hit by the global economic crisis, Premier Wen Jiabao has openly voiced concern about the status of his country’s investments in the United States.
China has also floated replacing the dollar as the key international currency with a basket of units bringing in the euro, sterling and yen.
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And also this about China…………..
Obama Names Republican Utah Governor Envoy to China
FOX news
Obama named Utah Gov. Jon Huntsman, a potential Republican presidential contender in 2012, to the sensitive diplomatic post of U.S. ambassador to China.
Fluent in Mandarin Chinese from his days as a Mormon missionary in Taiwan, the 49-year-old Huntsman is a popular two-term governor who served in both Bush administrations and was national co-chairman of Arizona Sen. John McCain’s campaign against Obama last year. Huntsman has made a name for himself advocating a moderate agenda in one of the most conservative U.S. states.
Obama’s 2008 campaign manager, David Plouffe, said Huntsman is a Republican who “seems to understand the party has to adjust — not stubbornly believe that everything is OK and it is the country that has to change.”
Huntsman’s positions on the environment and other issues have led some to consider him a potential contender for president in 2012.
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Wild Thing’s comment………
Correction, that is Obama’s Credit card being Cancelled.
Americans do NOT want to spend Trillions on Building a Bigger Nanny Government….A Obama Government that uses “Flu” to Scare Americans, and a Government that uses “Scare force One” to fly around New York scaring New Yorkers, and wants a 3.5 Trillion dollar Deficit on Credit.
China is simply doing what any other creditor would do when they see that a borrower is maxed out. They would be suckers to keep buying our debt when they already have nearly a trillion and we show no signs of pushing ourselves away from the trough.
If they did, then China is simply doing what any other creditor would do when they see that a borrower is maxed out. I guess Obama will ask his other friend Hugo Chevez.
And regarding Utah’s Gov. Jon Huntsman , good pick the rino, he won’t be missed.
……Thank you RAC for sending this to me.
RAC has a website that is awesome. 336th Assault Helicopter Company
13th Combat Aviation Battalion – 1st Aviation Brigade – Soc Trang, Republic of Vietnam
Just great–didn’t we say this would happen? Next they’ll call our loans and well, we just don’t have the money to pay them. Better start hiding your money now, so it doesn’t all go to the Chinese who will make a “run” on the bank.
Obama and the democratic congress have ruined this nation financially. What do I tell the children of this crisis? How do we explain that all their money has to go to China and they have to live with mom and dad forever more, not get married, not have a child of their own? Obama has stolen the American Dream and given it to the Chinese! What an Asshole! Shame on him!
Can we send obama & cronies and congress to work forced labor for the chinese and just call it even? Thy can also have bill clinton (i.e. the sombitch who sold us out) too. We should stop doing business with 1 billion chicom bastards right now (if there are so many Americans who need jobs then stop outsourcing). They needn’t worry we would begin payment of the 800 billion that we owe them. Then we should start up our military industry and start making proposals to Japan and Taiwan about buying U.S. nuclear weapons.
I F*ckin’ HATE the chinese!
P.S. to all liberals: if china is so damn great go there and leave us to take America forward.
It appears the financial crisis is about to get worse. China and Saudi Arabia have been buying our debt. Neither are friendly nations. Wouldn’t it be ironic if the dollar was destroyed and China became the world’s most capitalist market.
W are doomed anyway if we don’t start drilling for our own oil and gas.
Ah yes, another RINO running in the herd of jackasses, there’s a reason Mules are sterile, God didn’t like his magnificent horses being screwed by them either.
Socialism since 1932 has been a dismal failure,thank you FDR!!! By ruining free enterprise and driving industry out of business or offshore, we are at the cannibalistic stage of feeding on what little is left, none of it owned by our citizens, sold off to the Comrade’s to fund their takeover. What’s left is that the Chicoms and the muzzies are in control of our destiny and the Dhimmies like Swartzennegger, are begging like a Somali refugee for a tidbit. Pitiful bleating from a muscle bound eunuch.
Thanks JohnE PFC, you can’t hate the Chinese government anymore than I. The Chinese Civil War of 1927-1949, brought the Chicoms into the grand arena, as a result the Democrats (including RINO’s) have cowered and kowtowed to them since 1949, through two of their bloody indecisive proxy wars, some of us here left our own blood spilled in that laterite soil, in vain. In the end this same band of fellow members of the Communist Party has sold us all the way out. I’m supposed to refer to them as honorable? Bullshit!!!
Huntsman is another Powell or Steele another RINO who thinks we should change our party to be more like the democrats, again so why go with the impostor when you can vote for the real McCoy.
If China gets too antsy with our debt we will be in terrible shape. We are already doubling the money supply if that increases too much more then, the depression of the thirtys will look like a walk in the park. The cost of goods and services will start to rise and the dollar will decline and the more funny money they put out there will exacerbate the problem. 600,000 jobs have already been lost this year. This is not going to help the speculators in the economy.
We. the United States, put China in the position to buy our debt to save cutting back on programs that should have been cut. Huge Taxes for Businesses chased companies overseas, hence jobs lost. These companies, some of them moved to China. The American Companies had to pay Taxes but was deferred until they made a profit. Obama changed that and now will have to pay an additional Tax including the existing Tax for being oversees. A Foreign competitor will be able to grow in China where the American company will not it will shrink in size, because of the punitive taxes. Another Tax compounding the problem because of selfish, greedy bureaucrats.
We are our own worst enemy. It is not China’s fault our leaders were inept enough not to control the budget and let spending get out of hand. China saw an opportunity to make money and they took it. Now with Obama it looks like their investment is going South and they want their money back and who can blame them.
The AIG bailout, more than half of the money went to Europe. Why Europe ? Because, our banks were selling alot of those bad home loans overseas then AIG couldn’t finance them and keep up the payments. The whole damn economy has been one big ponzi scheme or a house of cards…And Now the “Chickens” are coming home to roost.
The democrats and Republicans, too, keep promising to pay for Health Care, Welfare, Housing and the list goes on and on. This house of cards is so overworked it is now starting to come down. It started a long time ago but Obama has been the catalyst to accelerate it to the point where it is coming apart. These progressives are the worst of all the politicains, they seem to think that we have a bottomless bucket of money all that is needed is to tax the right people and that will pay for everything. We have reached a point where they are beginning to see the bottom of the bucket.
Our founding fathers woiuld have a fit if they could see the power grab our Leaders have garnered for themselves over the past 96 years.
If China gets too excited about this debt we are in deep shit.
Lynn, I don’t know a lot about this. It
came as such a huge shock to me awhile
back when I learned we were borrowing
money from China. I swear I almost fell
off my chair.
Ever since then it just feels like our
country has become so fragile if we have
to borrow like that. We were always the
country that would lend countries money
not the other way around.
Lynn, I agree, it has so many ramifications
and dangerous to our nation by what they did.
JohnE PFC U.S. Army, I would LOVE for
that to happen!!!!!!!!!
“Can we send obama & cronies and congress to work forced labor for the chinese and just call it even”
Tom, Yessss we have GOT to DRILL. Gosh
how stupid, totally stupid not to.
God gave us all this oil and not to
use it makes no sense at all.
There would be jobs, businesses in the
areas would open and flourish, money
spent shopping, our own oil and not
be slaves to the Muslims for oil. oh wow
I want this so much to happen.
Jack, how perfect is that!!!!!
“there’s a reason Mules are sterile, God didn’t like his magnificent horses being screwed by them either.”
Mark, all of that is so true.
What would it be if just a handful of
politicians would decide to honor
our founding fathers and hold them up
as the standard for decisions and our
Constitution.I would love that.