Washington stops lecturing its biggest lender, China

Washington learns to treat China with care

The economic crisis has shifted the balance of power, so the U.S. has stopped lecturing its biggest lender.


By Nina Easton, Washington editor



Last Updated: July 29, 2009: 4:37 PM ETWASHINGTON (Fortune) -- America met with its lead banker this week and was forced to answer plenty of tough questions about its spending habits. "Attention should be given to the fiscal deficit," China's finance minister, Xie Xuren, warned the U.S.

http://money.cnn.com/2009/07/29/new...ender_respect.fortune/?postversion=2009072914


It's a good thing that America's finally being lectured to, after all the bullying and demand-making that our government does and continues to do. Our government better get used to it. The Chinese wanna what we're gonna do about all the deficits

 

It is interesting to see China so concerned about our economy. This has been going on for awhile now as the Bush administration also had in depth communications with China regarding our debt load. China has stopped accepting payments from other countries in U.S. dollars, they now ask for Euros, as our biggest debt holder this is a very chilling message they are sending.

 

I know they've been hinting at starting a new international currency in the coming years. Whether they will ever do that or not is anyone's guess. Obviously, they're not gonna do it anytime soon. Our dollar is still the currency by which the vast majority of international transactions take place in. But if we don't reduce this deficit, and China loses faith in the dollar, that would really hurt us

 

Very true, Obama is on record saying he wants to reduce the deficit, which is only part of the debt, by 50% http://www.thenewamerican.com/usnews/election/838, I have yet to see a definitive plan as to how his administration plans to lower the overall debt load. I am reserving judgment until I see his plans.

 

The deficit could grow by $10 trillion in ten years? Wow! Do these politicians have any clue???

I'd really like to see how the President's gonna lower this deficit