BEIJING – China's premier didn't say it in so many words, but the implied warning to Washington was blunt: Don't devalue the dollar through reckless spending.Oh no...brings back Eminent Domain fears! "Premier Wen Jiabao's message is unlikely to be misunderstood at the White House. It is counting on Beijing to help pay for its stimulus package by buying U.S. bonds. China already is Washington's biggest foreign creditor, with an estimated $1 trillion in U.S. government debt. A weaker dollar would erode the value of those assets."
"Of course we are concerned about the safety of our assets. To be honest, I'm a little bit worried," Wen said at a news conference Friday after the closing of China's annual legislative session. "I would like to call on the United States to honor its words, stay a credible nation and ensure the safety of Chinese assets."
Yeah Mr. Jiabao'...we are worried about the American Dollar also!
Wen gave no indication whether Beijing wants changes in U.S. policy. But economists said his comments reflect fears that higher U.S. budget deficits from Washington's $787 billion stimulus package could drive down the dollar and the value of China's Treasury notes.
"China is telling the U.S. to be careful, not to overspend and keep an eye on the dollar," said Kelvin Lau, regional economist at Standard Chartered in Hong Kong. "There are risks that China cannot control, so they're depending on the U.S. to maintain fiscal prudence and keep the dollar reasonably stable."
Overspending? Obama? No way! Yes a reasonably stable dollar would be a nice thing!
6 comments:
China should have delivered that Message to George Bush who we all know spent America's assets like a drunk sailor (with all due respect to Sailors). China should be more concerned that we spend too little. According to the top economists- we need an even bigger Stim Package to really get things moving, even though there are some already some promising signs of progress.
got the name of those top economists?
At the top of the list is the Nobel Prize winning economist Paul Krugmann.
You can Google a whole list of names quite easily if you ever bothered to do your own original research instead of copying and pasting your trash from RT wing Blogs.
Oh my SEP, you didn't watch George Stephanoupolus this morning. He had a statement from good old Paul Kurgmann ...yeah Paul was not too happy about some of what Obama's doing. SEP step away from the far left wing blogs and watch a channel with some validity!
Krugmann's big complaint - without WATCHING (I've been reading him for years) is that Obama's stim package doesn't go far enough...isn't big enough!
That's the problem with you righties: Bumper-sticker mentalities... You can't think past the bogus phrases that inform your world constructs.
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