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In an unusually blunt I-told-you-so, China's official Xinhua news agency publishes a commentary...

In an unusually blunt I-told-you-so, China's official Xinhua news agency publishes a commentary demanding the U.S. address its chronic debt problems: "The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone."
Comments (72)
  • Is this that one block of wood in Jenga, when you pull it out, the entire stack begins to wobble?


    You know its going to fall a second before it actually does.
    6 Aug 2011, 02:57 PM Reply Like
  • "The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone."


    6 Aug 2011, 06:35 PM Reply Like
  • They specifically mentioned both enormous military spending and bloated social welfare programs. They're not biased - something for both sides of the aisle to chew on.
    6 Aug 2011, 07:10 PM Reply Like
  • You gotta hand it to the Chinese, no bloated social welfare programs.


    It looks like they spend enough on hacking and spying on everybody to equal the military budget of any country except the US.


    Read somewhere they are going to have more naval vessels than we do any day, to promote peace in the South China sea, I suppose.
    6 Aug 2011, 07:15 PM Reply Like
  • Tom Armistead
    Read somewhere they are going to have more naval vessels
    Is that what you had read, before you have suggested on SA that USA economy was destroyed by Greenspan and Ayn Rand
    6 Aug 2011, 10:26 PM Reply Like
  • I don't see the connection between Greenspan and the Chinese Navy.


    Greenspan did damage to the American economy that will take generations to repair. He was an acolyte of Ayn Rand, as an impressionable youth he attended sceances at her apartment. There is no truth to the rumor that he had an affair with her.


    Greenspan, like Bill Clinton, played the saxaphone, a pity he didn't become the Leader of the Band instead of the Head of the Fed.


    The Chinese navy has not done any harm to the American economy. If the Chinese want to build a lot of holes in the water and fill them with money, let them go ahead with the project.
    6 Aug 2011, 10:38 PM Reply Like
  • Greenspan did damage to the American economy that will take generations to repair. He was an acolyte of Ayn Rand, as an impressionable youth he attended sceances(seances?sciences ?) at her apartment. There is no truth to the rumor that he had an affair with her.
    Greenspan, like Bill Clinton, played the saxaphone, a pity he didn't become the Leader of the Band instead of the Head of the Fed.
    If I tell you that Ayn Rand is dead and Greenspan is not playing saxophone any more, would you agree with me that your view of current state of USA economy is based on pitifully smelly assumptions
    7 Aug 2011, 12:41 AM Reply Like
  • No.
    7 Aug 2011, 05:16 AM Reply Like
  • I think they're telling us not to buy anymore Chinese crap. That might be the block of wood they don't want us to pull.
    7 Aug 2011, 11:38 PM Reply Like
  • If I had to pin this on anyone it would be Al. Please don't tell me your giving him a pass on this. Please.
    7 Aug 2011, 11:43 PM Reply Like
  • Greenspan is to Ayn Rand as Judas was to Jesus
    8 Oct 2011, 06:17 PM Reply Like
  • “In the name of the best within you, do not sacrifice this world to those who are its worst. In the name of the values that keep you alive, do not let your vision of man be distorted by the ugly, the cowardly, the mindless in those who have never achieved his title. Do not lose your knowledge that man's proper estate is an upright posture, an intransigent mind and a step that travels unlimited roads. Do not let your fire go out, spark by irreplaceable spark, in the hopeless swamps of the approximate, the not-quite, the not-yet, the not-at-all. Do not let the hero in your soul perish, in lonely frustration for the life you deserved, but have never been able to reach. Check your road and the nature of your battle. The world you desired can be won, it exists, it is real, it is possible, it's yours.”
    8 Oct 2011, 11:29 PM Reply Like
  • Forget the S&P.


    China wants in on this discussion.


    Big difference.


    The S&P is a letter from a collecting agency.


    China is Joe Pesci in Casino.
    6 Aug 2011, 02:58 PM Reply Like
  • China ownes 1.4T of 4T in foreign holdings of treasuries, domestic holdings is 10T. They arent our landlord, they arent our creditors. They hold %10 of our bonds.


    The terms of the bonds are in dollars, a currency that has undergone inflation, it will be repaid in dollars. China's %10 doesnt mean they are entitled to anything beyond the terms of the bonds.


    In the stroke of a pen our Treasury could immediately repurchase them from China.
    6 Aug 2011, 03:19 PM Reply Like
  • Wow, the Chinese tirade sounds the same as a lot of the commentary we get here on SA.


    Like propaganda.
    6 Aug 2011, 03:29 PM Reply Like
  • I hate agreeing with the Chinese but I've got to give them credit.
    6 Aug 2011, 03:48 PM Reply Like
  • They have already given us credit...
    6 Aug 2011, 03:52 PM Reply Like
  • You mean like Geithner?


    6 Aug 2011, 04:54 PM Reply Like
  • To the Chinese, masters of printing, borrowing isnt an issue.
    6 Aug 2011, 03:53 PM Reply Like
  • They've already had failed bond auctions, too.
    6 Aug 2011, 03:56 PM Reply Like
  • your missing the point. what does it say, when a crack addict(china) has to tell you your a total loser? man ya'll don't get it do you.
    6 Aug 2011, 04:01 PM Reply Like
  • If you spot it, you got it.
    6 Aug 2011, 06:37 PM Reply Like
  • Flair: You have to forgive us mere idiots because we simply don't understand when people confuse "you are" with "your" because it seems so simple. When these simple grammatical conventions are violated, one has to assume ignorance (this isn't rocket science).


    So, you simply don't care, or are just being ignorant, or a combo of both. Good riddance.
    6 Aug 2011, 08:25 PM Reply Like
  • How about ya'll. Will that do it for you?


    Errr.......I think I found some grammatical errors in you're.....ya'lls bio. Might wanna clear that up before you play the "Bad English Teacher" again. :-))))
    7 Aug 2011, 11:50 PM Reply Like
  • Under Bush Jr the national debt added $6T because of the two wars and tax cuts that benefited the wealthy. The two wars are religious in nature even though U.S dubs them wars against terrorists. Even though we are secular under the Constitution, religion is behind many U.S actions including those related to foreign relations. Our leaders many times initiate actions without bothering about the consequences. They appeal to our nationalism and patriotism. We always oblige. Our debt is now hampering us from addressing our domestic economic problems. Yes we can not govern ourselves. That justifies Chinese criticism mainly because the poor Chinese are financing our rich American high life.
    6 Aug 2011, 04:07 PM Reply Like
  • A downgrade of the nations credit rating brought to you by the same company that participated in the largest financial fraud in American History, namely the collapse of the American financial system that brought us to where we are today. Rating toxic assets as AAA that led up to the collapse of global economies along with Moody's and others brought us to our knees as a great nation. What is their motivation now, to further the collapse of the middle class and the demise of a the country?
    6 Aug 2011, 04:23 PM Reply Like
  • Donald Trump was on CNN this week. Donald Trump says that if he were President, he would immediately impose a 25% tariff on all Chinese goods imported to U.S.. The Chinese manipulate their currency and pay their workers slave wages. He says to adjust the imbalance, we'd have to impose a 40% tariff on all Chinese goods. He says that we are giving China approximately $350 billion a year, (trade imbalance) to rebuild China's infrastructure, and enrich China. Meanwhile, America is being impoverished. We are losing all our manufacturing jobs, and many other service jobs to China and India. Geithner is a pawn of Goldman Sachs and does whatever Goldman Sachs tells him to do. Geithner refuses to label China a Currency manipulator. Geithner blocked all investigations into Goldman Sach's criminal activity and fraud, during the Financial, and Housing crises. The investment bankers on Wall Street are encouraging massive investment in China and India, leading to massive outsourcing of American jobs and resources. Although this activity is bankrupting our country , Wall Street doesn't care. Goldman Sachs and other institutions are making Billions of dollars, on their gambling bets on China, at the cost of THE DECLINE of America. Obama, Bernanke, Geithner are abetting Wall Street, in the destruction of America's Wealth. We should default on our Treasury debt, say we're sorry. And then start over! Obama is acting like a Republican, with Geithner and Bernanke as his henchmen, enabling outsourcing of American Jobs, by encouraging investment on Wall Street in China, India and emerging nations. Obama, Bernanke and Geithner are THE ENEMY WITHIN, and are unfit, to lead this country. I believe, that Obama, is a sort of Manchurian candidate brainwashed and installed as President by the Investment Bankers and The Industrial Giants in America.
    6 Aug 2011, 04:41 PM Reply Like
  • funny how the communist chinese spokesperson sounds just like eric cantor. perhaps they're working from the same playbook.
    6 Aug 2011, 05:12 PM Reply Like
  • Yokyok
    funny how the communist chinese spokesperson sounds just like eric cantor. perhaps they're working from the same playbook.
    There is a match to everyone. Perhaps there somewhere a retarded Chinese who speaks like you
    6 Aug 2011, 09:21 PM Reply Like
  • I'm sorry coddy..............that was really lame. Try and dig a little deeper into the wit of yours the next time. Then again, you may have been bumping up against the bottom with this one. Well, try harder anyway.
    7 Aug 2011, 11:56 PM Reply Like
  • There is no reason to believe that the US is a superpower anymore, you will gradually loose your army, and your money toward fraud.


    The American people do not want real political solutions, they want the Symbolic politics and empty promises. That is why the GOP won in 2010 and the debt debate were politicians on both sides were ready to leave much needed compromise.


    If any politician change a stand, then they will be regarded as double standard. And when the political spinning machine begins its negative Hollywood showcase, then you can guess the result.


    If there is going to be a real change, then there has to be 67 senators in either side. Seen from the outside, the political system has failed. There is no reason to believe in any change after 2012 elections, the US is now a failed state incapable of making decisions.
    6 Aug 2011, 05:13 PM Reply Like
  • To put the US debt situation into numbers more relatable to Middle Class folks, consider:


    "If the US Government was a family, they would be making $58,000 a year, they spend $75,000 a year, & are $327,000 in credit card debt. They are currently proposing BIG spending cuts to reduce their spending to $72,000 a year. These are the actual proportions of the federal budget & debt, reduced to a level that we can understand." - Dave Ramsey"


    To any responsible leader anywhere, the US desperately needs to get its fiscal house in order!
    6 Aug 2011, 06:39 PM Reply Like
  • Replace "credit card debt" with mortgage, student loans and any other debt and you are accurately describing many middle class families.
    6 Aug 2011, 10:20 PM Reply Like
  • who cares, i wanna watch all the losers go after each others throats, from my 45ft boat, of course....
    6 Aug 2011, 06:41 PM Reply Like
  • Hope you're off-shore, rick flair, like I am, because those losers might soon be coming after your boat, as soon as they beat up on each other.
    7 Aug 2011, 03:44 AM Reply Like
  • China's economy is based on our ability keep the USD valuation high. Its possible with the S&P downgrade this could collapse the dollar in the shortterm, hence would make china's exports more expensive and then this would hurt China's overall economy. We are in big trouble.
    China is more like Sharon Stone in Casino. (China is dependent on the U.S., to make there economy grow)..


    Once the dollar collapses, China's growth will reverse and they will then call us on our debt. We won't have the money, and this would cause global economic instability.
    6 Aug 2011, 06:42 PM Reply Like
  • China leaning on the US, QE3 will be VERY unpopular & may even have some sort of black swan retaliation.


    China will clearly use annual QE as evidence #1 for changing the reserve currency


    Printing in 09, 10, & QE3 in 11? We went from 1.5 years of effect winter 09 to summer 10, to 1 year with QE2 & after QE3 could it only last half a year? Weak.
    6 Aug 2011, 07:27 PM Reply Like
  • China can talk about our bloated social programs because it has none. That's not something to brag about. It's something to pity in them. Chinese work long hard hours for little pay and have to leave their kids just to find work in the cities. Not to mention the imbalance of male to female children from selective breeding. You stay classy China!

    6 Aug 2011, 07:32 PM Reply Like
  • In that case, I'm glad the U.S. is in so much debt. I would rather not leave my wife and child to go off and find work that is "long hard hours for little pay".


    Everything in life has a price. We have debt, but a decent standard of living. They have no debt, but live like serfs.


    That said, the U.S.'s social welfare programs are way too big. Even people who don't work at all have a decent standard of living (better than those Chinese who work long hard hours for little pay).
    6 Aug 2011, 07:57 PM Reply Like
  • "Everything in life has a price. We have debt, but a decent standard of living. They have no debt, but live like serfs."


    I live in Asia, and you know, I can't count the number of times I have heard this one muttered by even the Chinese themselves! The average Chinese worker (contrary to western media opinion) can only dream of having a house with a mattress warm enough to wake up comfortable and soft enough to sleep undisturbed.


    A country's GDP/debt figures are really quite irrelevant in the short-/medium-term for most of the people who live in a country, sort of like the way Wal Mart's quarterly earnings really don't matter at all to most of its employees! It's how the company (uh-hmm, country) takes care of the employees that matters most to them.
    7 Aug 2011, 02:40 AM Reply Like
  • Yeah but with globalization US costs have become too high, yet US citizens party like it's 1999. That's nothing to brag about either. And the US, much to the world's delight, demands to be the world's policeman. Snicker, snicker. If I'm an Afghan soldier I'd make sure I'm "right behind" (literally) the US/coalition soldier that wants to lead. Be my guest. The US should pull back from these third world hell holes and should have done so years ago.
    7 Aug 2011, 03:47 AM Reply Like
  • To have been chastised by our largest foreign debtor regime which we attempted unsuccessfully a long while ago to encircle and usurp is hardly a singular honor.


    What does this speak of United States leadership?
    6 Aug 2011, 07:51 PM Reply Like
  • OR the government could investigate S&P....
    6 Aug 2011, 07:58 PM Reply Like
  • Send Obama to China and leave him there.
    6 Aug 2011, 08:29 PM Reply Like
  • The Chinese have a bit too much swagger for my liking. Hubris will be their downfall... As for us - we're headin for a comeuppance but
    I bet we have a better political system in the long run and the people of this country will solve these problems.
    6 Aug 2011, 08:50 PM Reply Like
  • Hubris? Those who live in glass houses should not throw stones.
    6 Aug 2011, 08:56 PM Reply Like
  • My glass house has tinted windows. I see yours does, also.
    7 Aug 2011, 10:32 AM Reply Like
  • Just tell the slanted Chinc to STFU or we nuke them like Japs to submission.
    6 Aug 2011, 09:07 PM Reply Like
  • Yokyok, under Clinton we never had a budget surplus - that was spin and propaganda. All the expenditures of the US govn (ie unfunded liabilities like social security) are not included in the budget, the gov during the Clinton years still had to borrow to cover all its expenditures.


    You may want to read "The Coming Economic Earthquake" written in the 1990s that spoke about all the gov. Shenanigans and has proven to be a prophetic book since we are now breaking up under the debt burden created by every administration in office. The problems with our leaders is that they create the problems, but want the rest of us to sacrifice and pay for their excesses.
    6 Aug 2011, 09:45 PM Reply Like
  • Maybe we should address the problem with our national debt by buying less rubbish from China for which we pay with more borrowed money.
    6 Aug 2011, 11:07 PM Reply Like
  • But their rubbish is cheaper to buy (shipping included!) than the same rubbish made right here in the U.S. Maybe address that issue, and people will buy American made crap instead of Chinese made crap.
    6 Aug 2011, 11:16 PM Reply Like
  • why buy crap at all? If the US saved more, so it could go into science that will make our lives better, we would not have to spend money on having 10 TV sets or 10 pairs of flip flops around the house.
    7 Aug 2011, 03:51 AM Reply Like
  • Tell me about it. Newt Gingrich is buying T shirts from them so he can get the word out on his campaign. Gotta love that!!!!
    8 Aug 2011, 12:03 AM Reply Like
  • How about if we can't afford an American product we do without???
    8 Aug 2011, 12:04 AM Reply Like
  • Obama is doing a good job at destroying this country.
    6 Aug 2011, 11:18 PM Reply Like
  • All I can say is ...... AMEN!!


    Boy, they must have taken an oath to "tell the truth, the whole truth, and nothing but the truth". Too bad our idiot politicians can't manage any of the truth!!!
    6 Aug 2011, 11:47 PM Reply Like
  • Could you imagine, 50 years ago, a communist country telling the United states that they should cut social programs!
    7 Aug 2011, 12:13 AM Reply Like
  • In an unusually blunt I-told-you-so, The Wall Street Journal publishes an op-ed by Barack Obama demanding that China address human rights violations: "The Chinese government has to come to terms with the painful fact that the good old days when it oppress its people and hides evidence via censorship are finally gone."
    7 Aug 2011, 01:58 AM Reply Like
  • ". I believe, that Obama, is a sort of Manchurian candidate brainwashed and installed as President by the Investment Bankers and The Industrial Giants in America. "


    I think that a lot of presidents have been in such a dilemma. They start out with good intentions but before you know it they bow to the pressure of big banking/industrial giants.
    How did the Fedral Reserve, a NON Federal Agency/ corporation, become more powerful than the government? They can distribute trillions of dollars to anyone in the world and are not obligated to show any records of transactions in detail. They can not be audited and are not taxable. Along with other central banks of the world they form cartels and are absolutely the most powerful organisation in the world. It would be very interesting to see how they would put Ron Paul in line should he be elected president. Ron Paul is very clear about wanting to shut down the Federal Reserve, you think some people would not like that? Abraham Lincoln also was very outspoken against Central Banks and it was his mission to overcome them, but he also failed. But hey he got a nice monument built for him.
    7 Aug 2011, 01:59 AM Reply Like
  • This conversation sounds like a 'Far Side' version of Ann Coulter hysterics except it's corporate America who are the traitors, exporting manufacturing jobs in order to pad their own wealth and appease Wall Street.
    7 Aug 2011, 01:59 AM Reply Like
  • I wonder who is more addicted, China buying treasury or US selling treasury.


    Hey China, if you don't like treasury, sell it to me 50 cents on the dollar. Hahaha
    7 Aug 2011, 02:03 AM Reply Like
  • There will be no qe3 buy puts for the financial meltdown in the coming week..... Then buy apple when tye smoke clears...... Politics and puppet shows are one in the same.... Those who have a chip on ur shoulder let it go...... It will get better the world is realizing obama was a big mistake dont look for jobs go make one!!!!! Entreprenerial spirit is what built this country!!!!!
    7 Aug 2011, 02:07 AM Reply Like
  • "The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone." -- Xinhua


    I know there is a lot of support for this, but I must say this kind of father-child speak is unhelpful at best and at worst just pathetic and immature political posturing. This is the equivalent of the US saying it is going to bomb countries into "the dark ages" (ie hyper-aggressive speak); this quote reflects the very worst qualities of the Asian mentality, which occasions towards acting superior and using power in such a way as to attempt to psychologically control its opponent/partner. Instead, the Chinese ought to use one of their best attributes: to just get on as usual and do their thing.


    It smacks of hypocracy, too. After all, the only reason the country is buying US government paper is because if it didn't, then its manufacturing base would go bankrupt overnight. By that rationale, it's not inaccurate to suggest that Treasuries -- and therefore by extension the US credit rating -- are the only reason China even has a GDP in the single digits in the first place (if you don't believe me, look at all the African economies flush with natural resources while their currencies and economies spiral daily further out of control).


    In the real economy, there are many different different forms of "borrowing" and China I am afraid is one of the largest debtors of all -- to none other than the USA!
    7 Aug 2011, 02:20 AM Reply Like
  • China is kicking our actually we are kicking our own butt. We need to get our act together.
    7 Aug 2011, 04:08 AM Reply Like
  • How convenient is all this from the Federal Reserves perspective. We must remember the Federal Reserve is a private banking corporation with one thing in mind - profit. It has stronger ties with other central banks in the world than to the american public. Don't be fooled by the name "Federal Reserve"
    How can a central Bank make the most profit? Its simple, first you spill money into the market with easy loans, that gets the public tied up. Then you empower politicians and presidents to borrow huge amounts of money, all throughout history wars have always been the best way to force governments to borrow huge amounts of money from central banks. Then as the currency eventually declines in value due to overprinting, they simply shift their focus to gold as a "safe haven" Ron Paul asking Bernanke "Is Gold Money?" comes to mind. That got Bernanke stuttering for a second until he found a way out with meaningless analogies, diamonds etc. We all know that Gold is as good as money because the Federal Reserve and other central banks want it that way.
    Next step is to tighten the money supply. Loans become harder to get, the reason for that is then "in order to protect the banks and the economy". That way the public frantically approves more government borrowing in order to keep the dried out economy moving. Even though it is perfectly clear that at this point the currency is headed downhill and anybody who knows economy knows that this cycle started way before the "bailouts and stimulus packages" occur. The Federal Reserve at this point doesn't care about the currency anymore as it has shifted to Gold and other international ventures of which they have to give absolutely no account to the public.
    Then comes of course the inevitable, a market crash. The market crash kils two birds with one stone. It potentially helps to stabilize the currency against inflation as it reduces the currency in circulation dramatically (if the shareholders panic, which they usually do) while on the other hand it makes the public and the government even more enslaved to borrowing.
    Then to gain absolute control they eventually play with the power to raise or lower interest rates again. The slightest raise in interest rates at this point would cover the streets with blood, wars would easily be triggered as nobody truly understands the manipulations behind it all. All you would need is control over the media (which they have) and that would make it easy to create panic in whatever way necessary.
    One thing they have going against themselves is that it is becoming more and more difficult to throw the planet into a war as we are becoming more and more globalised.
    Imagine how much currency this crash of 2011 is withdrawing from circulation and how quickly! Its perfect, loan the money to the government and take it from the people, which means the public is borrowing back the money that it just lost due to the central banks manipulation.
    Isn't it interesting how calm Bernanke is regarding inflation, he knows that it can be kept at bay because there are still ways to remove money from circulation. ... but who is paying the bill, once again??!! Pretty much all of the most loved presidents of this country were absolutely outspoken against the central banks, out of a simple reason, they operate for their own profit and they are not bound by the borders of a country and patriotism.


    Andrew Jackson was the only president that was able to unite the publics interest against the central banks and won.
    It is very simple to avoid this debt solution to get out of hands even more, the government has to print its own money (which it already does) but this money has to be interest free to the government. How ridiculous is it anyways that a government has to pay interest on its own money!
    Then a institution has to be instated whose job it is to monitor how much money can be printed in relation to the market. A institution similar to what the Federal Reserve is sold to us as, only that this institution would be an AMERICAN institution with American interest first! ... and it is not in it to make a profit. It is purely functioning on behalf of the government to control the printing of money. Who cares about a credit rating then? And if we supposedly can not trust such a governmental institution to do the job right then why the hell should we trust the Federal Reserve? The Federal Reserve has been in power now for 98 years and the result is a disaster. This should be the next battle that the people of this country should be fighting in order to get themselves out of this mess instead of blaming democrats and republicans.
    7 Aug 2011, 08:46 AM Reply Like
  • So what you are saying is that you have no idea what a central bank is or how it works, correct?
    7 Aug 2011, 05:44 PM Reply Like
  • Perhaps China should end their hypocrisy and addiction to currency manipulation before they criticize the US. The debt is a derivative of their manipulation, not the other way around.


    I'd go for a 25% tariff on China's goods. We'll see how quickly things change.
    7 Aug 2011, 05:36 PM Reply Like
  • Huh, how ironic... Last time I checked it was the U.S's debt addiction that gave rise to China's economic surge! I mean where would they be without the average American and there 5 tv sets!
    8 Aug 2011, 12:22 AM Reply Like
  • Counterfeit goods from China cost the US $480 billion a year,
    if the chinese weren't such crooks we'd be able to cancel the trade deficit and create jobs here.
    8 Aug 2011, 01:58 AM Reply Like
  • we may not have much choice shortly. :-o
    8 Aug 2011, 10:33 PM Reply Like
  • We are all FU&*ED. This country won't be able to grow its way out of the debt and we will eventually default..even if they continue to raise debt ceilings...


    A default of US debt won't come from within our govt. It will come from outside, when the dollar continues its slide, foreign investors will no longer find it profitable as their US dollar denominated assets plummet, they will exit out and the dollar bubble will pop.
    9 Aug 2011, 08:18 AM Reply Like
  • If its made in China, put it back on the shelf. In six months the companies would be shipping stuff from China to the USA and it wouldn't be product it will be factories.
    10 Aug 2011, 01:18 AM Reply Like
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