China Official: It's Too Late, U.S. Already 'Defaulting'

[B. Kidd]

Bottom line is:

American consumers enabled the Chinese to become a major manufacturing power. American investors are being advised to invest in Chinese manufacturer's who stand to benefit the most from the growing Chinese middle-class, as obviously, the Chinese consumer will primarily buy 'Made in China' goods before buying 'Made in U.S.A.' goods.
Whose gonna end up being the 'all day sucker'?

 

[Flagwavrusa]

Bottom line is:

American consumers enabled the Chinese to become a major manufacturing power. American investors are being advised to invest in Chinese manufacturer's who stand to benefit the most from the growing Chinese middle-class, as obviously, the Chinese consumer will primarily buy 'Made in China' goods before buying 'Made in U.S.A.' goods.
Whose gonna end up being the 'all day sucker'?

Hmmmmmm, let me think. We borrow a trillion dollars from the Chinese, use it to pay for a trillion dollars worth of computers and big screen televisions, and then pay them back with a trillion worthless Weimar dollars. Sounds like a pretty good deal for the Americans!

 

[Moonglow]

Chinese are manipulative liars.

 

[Moonglow]

You do know that we are approx. 1 trillion in debt to them as we continue to go broke. And there are other emerging global markets they can sell to.
But if you think we are still that 'exceptional', have at it.

We don't owe the Chinese a thing. They pay their workers slave labor wages and manipulate their currency to keep prices of their goods artificially low, thus robbing America of tens of millions of jobs, then sell products they stole from American patent offices back to unsuspecting Americans at below cost, and use the revenue to buy American bonds so they can try to hold our government hostage without firing a shot. I say, if they want "their" money back, fire up the printing presses and send them a boatload of paper. Then they'll be able to finally pay us back for dragging them out of the sewer of communism by using those dollars to buy American goods and put Americans back to work. Call it Stimulus 2.

How is that projected and expected growing consumer demand by the Chinese for American goods working out for us as related to current American job creation and eventually being a driving force towards helping our economy and the Europeans?
It isn't happening!
Why? You answered it in your own post. By paying slave wages, they stifle consumer demand for imports. It is not growing as fast and as much as expected.
Still, it does not change the fact that we owe them a trill with interest.
Yet, a few American multinationals are poised to benefit from the consumer demand that is slowly emerging there. But just a few, and it is slowly emerging.

How to Profit From the Coming Boom in Chinese Consumer Demand

they don't need to buy American goods from the US of A. They are made in China already, everyone wears Nike

 

[saveliberty]

Devaluing the dollar makes our goods easier to buy in China. I don't think that is where the Chinese government wants to go. The Yuan is just another fiat currency.

 

[Toro]

"Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., reportedly told state media that the United States has already defaulted by letting the U.S. dollar weaken. "

This should be front page material. This is an affirmation of everything Ron Paul has been saying for over a decade.

lol

A declining dollar is not "defaulting."

That's ridiculous.

The Chinese have some gall to bitch. They pegged their own currency to the dollar. If they are so worried about the dollar, they should run different economic policies.




Doesn't mean we aren't going to really default though...

 

[hellofromwarsaw]

Faux Noise is full of fear mongering BS, like Rush and the pubs. The Pub Propaganda machine is winning and delaying the recovery....un-American swine...for the moment anyway, holding the country hostage for their mega rich masters...

 

[Flopper]

At this point, the question may be no longer about IF we default, but WHEN we default.

If we don't raise the debt limit, default will be sooner rather latter. I prefer latter.

The only reason investors buy treasury bills is for safety of principal and interest yet looking at treasury bill yields, investors seem to be a lot less concerned about this than the politicians. I think that should tell us something.

 

[auditor0007]

Maybe we need to take a close look at Romney and maybe he should invite Trump along to help.. I'd vote for them.

I supported Romney in 08, and although I'm not as high on him now, I could easily live with him if elected. I'd be willing to bet money that he would raise taxes as part of the solution to getting the budget under control, along with making the necessary cuts.

 

[oreo]

As lawmakers scramble to cut a budget deal and avoid defaulting on U.S. debt, the head of a top Chinese rating agency claims it's too late.

Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., reportedly told state media that the United States has already defaulted by letting the U.S. dollar weaken.

"In our opinion, the United States has already been defaulting," Guan was quoted as saying, according to AFP.

China, likewise, has long come under criticism for allowing its currency to weaken. But while Dagong Global is known for being tough on the U.S., Guan's words carry extra sting as they follow warnings from three top rating agencies about U.S. finances.

Fitch is the latest to warn the U.S. that its sterling credit rating could be at risk if it fails to raise its $14.3 trillion debt ceiling or fails to rein in its long-term deficits.

Moody's and Standard & Poor's have already issued similar warnings.


Read more: China Official: It's Too Late, U.S. Already 'Defaulting' - FoxNews.com

No surprise here

The Federal Government is currently borrowing .43 cents on every dollar it spends.

Now the Federal Government wants to raise their credit card limit so they can borrow and spend more.

 

[hortysir]

Faux Noise is full of fear mongering BS, like Rush and the pubs. The Pub Propaganda machine is winning and delaying the recovery....un-American swine...for the moment anyway, holding the country hostage for their mega rich masters...

Ah..


This thread isn't about Faux

 

[Kuros]

At this point, the question may be no longer about IF we default, but WHEN we default.

If we don't raise the debt limit, default will be sooner rather latter. I prefer latter.

The only reason investors buy treasury bills is for safety of principal and interest yet looking at treasury bill yields, investors seem to be a lot less concerned about this than the politicians. I think that should tell us something.

I strongly disagree with this post. A debt default is very serious. Investors are not taking the possibility of it seriously because they believe the GOP are bluffing, and will approve a debt cieling deal eventually. Investors would take the possibility far more seriously if they believed the US Congress would willingly take such a reckless action.

I mean, there's all kinds of evidence that investors WOULD take an actual default scenario very seriously.

S&P would cut US to D on default, Moody's to Aa

“If any government doesn’t pay its debt on time, the rating of that government goes to D,” Chambers said today in an interview with Erik Schatzker on Bloomberg Television’s “Inside Track”. “Having said that, we think the government will raise the debt ceiling. They’ve raised it 78 times more or less since 1960, often at the last moment, and we think that will be the case this time.”

 

[McDowell's]

So then you would agree that the U.S. has no more right to complain about China's currency than China has to complain about the U.S. dollar?

What? No . . .

Listen, currency manipulation is not debt default, okay? A debt default would be if the US has failed to repay the Chinese state the money the US has borrowed. The US has undeniably not defaulted.

Meanwhile, the US has also undeniably inflated the money supply and weakened its currency through Fed Reserve injections. I'm not blasting the Chinese for currency manipulation. It would be hypocritical, no? But calling currency manipulation a per se default is just senseless hyperbole.

It's default because you're not paying them back the same value that you borrowed, which is pretty much the definition of default.

So you can prove there is a requirement in the bond agreement that the principal fluctuates with inflation or currency valuations and that the United States has not honored that requirement? If not, it's not a default on the terms of the bond agreement no matter what rationalization you come up with.

 

[St.Blues]

Here's what I say........ Tell China to screw. Write off the Debt we owe them and tell the American owned Companies to come home.

After all we are buying there junk.. They are taking our dollars and then lending them back to us.

How stupid is that.... Hey Clinton its working. You scum bag.

 

[saveliberty]

It is pretty stupid to keep paying 43 cents on the dollar for debt don't you think?

A reorganization of our debt would be a short term problem. Restoring ourselves to fiscal health would happen much faster than what we face and possibly less damaging overall.

 

[Moonglow]

according to the Constitution, all debts must be paid.

 

[saveliberty]

according to the Constitution, all debts must be paid.

4. The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.

Ah no, that is not correct. If it was, then we won't have a deficit, because Congress would have to pay debts or face a Constitutional crisis.

 

[saveliberty]

according to the Constitution, all debts must be paid.

Another Huffington genius I see.

 

[Kuros]

according to the Constitution, all debts must be paid.

Another Huffington genius I see.

He's right, you know.

Ben Wade argued that the purpose of his proposal, which ultimately became Section 4, was to prevent the validity of the public debt from being used as a tool of partisan struggle and partisan revenge: "every man who has property in the public funds will feel safer when he sees that the national debt is withdrawn from the power of a Congress to repudiate it and placed under the guardianship of the Constitution than he would feel if it were left at loose ends and subject to the varying majorities which may arise in Congress."

Stern dismisses Senator Wade's speech as just the views of "a single senator" about a proposal with quite different language from the final version. He makes it sound as if Wade just was some random Senator who offered a proposal that was shot down and a better one put in its place.

But Ben Wade was not just any senator. He was a key Republican leader during this period-- the leader of the Radical Republicans, in fact-- and was soon to be elected President pro tempore of the Senate. This was not merely an honorary title, as it is today. It made him, in effect, the Vice-President in waiting. (Because of Lincoln's assassination, there was no Vice-President-- the Twenty Fifth Amendment would not be ratified for a century). Thus, everyone understood that the effect of convicting Andrew Johnson was to make Ben Wade President.

Thus, Wade's proposal, and the reasons he gave for it, mattered a lot to the people he was speaking to. Moreover, what he said in his speech, and the reasons he gave in his speech, were not at all idiosyncratic; they reflected what the Committee of Fifteen discovered in the hearings it held leading up to the drafting of the Fourteenth Amendment. Testimony suggested that once the ex-rebels returned to power, they would try to avoid paying the federal debt and attempt to get the government to pay the Confederate debt. See Benjamin Kendrick, Journal of the Joint Committee of Fifteen on Reconstruction at 282-85; see also Garrett Epps, The Undiscovered Country: Northern Views Of The Defeated South And The Political Background Of The Fourteenth Amendment, 13 Temp. Pol. & Civ. Rts. L. Rev. 411, 419-21 (2004).

The original understanding of the Public Debt Clause of Section 4 of the 14th Amendment was that the public debt should not be used as a pawn in partisan struggle.

 

[saveliberty]

What is partisan about taking on too much debt? Section 5 clearly lays this at the feet of Congress, but it is more convenient for yo uto stop at section four.