President Barack Obama
China, the largest holder of U.S. debt, has used its strongest language to date, warning Washington to decrease its wild spending, as it is devaluing the U.S. dollar and in turn, the Communist nation's investment in America, to the tune of $1 trillion dollars. It has been reported, Chinese Prime Minister, Wen Jiabao, snubbed President Obama last week.
Based on reports, the Chinese government is not happy with the Obama Administration's spending, labeling it a, "Determination to expand the U.S. social welfare state" that "Will necessarily meet a limit when foreign nations lack the U.S. dollar foreign exchange reserves needed to purchase increasing amounts of U.S. Treasury debt."
In short, China and the rest of the world is not willing to bankroll the Obama Administration's wild spending, for fear everything will collapse again, but to worse degrees and take their nations' economies with it, for having invested in this unsound spending.
Tensions aside, the White House and Congress devaluing the U.S. dollar, sending it in the direction of making said currency worth less than the paper it is printed on is very inadvisable. The Obama Administration cannot spend the nation's way to prosperity, as world economics does not work that way.
There are more creative, sound ways to tackle America's financial woes. Right at the top of the list should be reduced government spending, budget cuts and a solid return to American manufacturing. Stop using the taxpayers money in this manner, as it is not going to add up.
China warns Obama deficit spending must stop
Beijing reluctant to keep bankrolling president's belt-buster budget
Posted: December 19, 2009 - One day after the Chinese Prime Minister Wen Jiabao snubbed President Obama at the United Nation's Copenhagen Climate Summit, the Chinese warned the United States that China's ability to continue buying U.S. Treasury debt was limited...
The Shanghai Daily reported that Zhu told an academic audience that it was inevitable the value of the dollar would fall in value given the increasing reliance of the Obama administration on issuing U.S. Treasury debt to finance deficit spending.
"The United States cannot force foreign governments to increase their holdings of Treasuries," Zhu said. "Double the holdings? It is definitely impossible."
Zhu's warning was clear.
"The world does not have so much money to buy more U.S. Treasuries," he said.
China's warnings portend that the Obama administration's determination to expand the U.S. social welfare state will necessarily meet a limit when foreign nations lack the U.S. dollar foreign exchange reserves needed to purchase increasing amounts of U.S. Treasury debt...
