Wednesday, November 11, 2009

China warns President "Spend-it-all Sparky" about growing U.S. Deficit

The Big Egg Roll in China has told the Bid Egg Head running our country to put the U.S.A. Credit Card away and relax with the spending us into oblivion.

It's almost like the kid in the grocery store being told by his parents, "I said no more, now put that candy bar back!"

From Yahoo Finance --
As President Barack Obama prepares to depart Thursday for his first Asia trip, Chinese premier Wen Jiabao is urging the U.S. to keep its deficit to an "appropriate size," a clear message to the leader of the world's largest debtor nation from its largest creditor.

China is the largest holder of U.S. government debt and has invested an estimated 70% of its more than $2 trillion stockpile of foreign-exchange reserves (the world's largest) in dollar assets, Reuters reports. Further dollar weakness, brought on by enormous U.S. deficit spending and near-zero interest rates, would erode the value of China's huge U.S. holdings, as Henry and Aaron discuss in the accompanying clip. More...

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