China’s official news agency wonders why America is in charge when it’s creating mayhem in the financial markets, according to International Business Times. They write, “… the cyclical stagnation in Washington for a viable bipartisan solution over a federal budget and an approval for raising debt ceiling has again left many nations’ tremendous dollar assets in jeopardy and the international community highly agonised.”
IBT continues:
The official news agency of China, which is seen as the pretender to the world’s superpower crown, then rubbed in more salt, calling American economic pre-eminence just a seeming dominance.
It asks why the self-declared protector of the world is sowing mayhem in the financial markets by failing to resolve political differences over key economic policy.
This led the Xinhua news agency to gleefully call for a “de-Americanised world”, noting that the world would be better off in the hands of folks with a functioning government.
This isn’t just political posturing, as IBT reports that per the Treasury, “China is the biggest foreign owner of US Treasuries at $1.28 trillion as of July.”
According to the Treasury, next up to feel the pain of Republican economic terrorism would be Japan, Carib Banking Centers, and Oil Exporters. Good going, GOP.
This will impact more than just large holders of our bonds. According to PolitiFact, your mutual fund could be invested in what used to be considered “safe” t-bills.
If you hold a savings bond your grandmother gave you on your 10th birthday, or if you go to www.treasurydirect.gov to purchase Treasury bills, then you are loaning money to the government, with the promise of receiving your principal plus interest at a specified future date. Alternately, if your mutual fund buys a Treasury bill, you indirectly own that security. Investment banks, sovereign wealth funds and other large investors purchase Treasury debt all the time in auctions held by the Treasury. If you hold a U.S. security in this way, “it means that you have loaned money to the U.S. government, and it has borrowed from you,” said Neil H. Buchanan, law professor at George Washington University and author of The Debt Ceiling Disasters.
This is what the President meant when he explained that the the bond market is boss. President Obama told reporters, “Ultimately, what matters is: What do the people who are buying Treasury bills think?”
The answer?
The Xinhua news agency called for an end to the US dollar as the international reserve currency in order to protect the international community from Republicans’ economic jihad.
This must be what conservatives mean by “USA! USA! USA!” Kill the exceptionalism, violate the Constitutional mandate to pay our debt, and turn America into an international joke, causing America to lose its world standing even when W isn’t in office. Check, check, check and check.
This is WINNING, Tea Party style. Meanwhile, Tea Partiers are calling for a non-violent revolution against this President and demanding that he put his “Quran” down.
Political Ticker reported on the folks Republicans brought to the dance:
“I call upon all of you to wage a second American nonviolent revolution, to use civil disobedience, and to demand that this president leave town, to get up, to put the Quran down, to get up off his knees, and to figuratively come out with his hands up,” said Larry Klayman of Freedom Watch, a conservative political advocacy group.
This country had better get a handle on these Republicans, or they are going to do what Al-Qaeda never managed to do to the US.
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