Source: TradeTheNewsroom.com
The land of ghost cities to prop up its GDP is calling for a new world order and a de-Americanized world. China is obviously not happy about the dysfunction on Capitol Hill regarding the debt ceiling debate. Then again, where are you going to send all the cheap goods to? Walmart must be restocked. Especially once they are ransacked when Black Friday hits.
Beijing has been itching to flex its political muscle for awhile. They converted a floating casino into an aircraft carrier. The right wing was set ablaze with that news. Granted, having an aircraft carrier and being able to use it – two entirely separate things.
With the political turmoil in the states, China has been blasting the U.S. in op-ed pieces in their state run papers. They have been pushing other countries not to rely on the US as much:
“As U.S. politicians of both political parties are still shuffling back and forth between the White House and the Capitol Hill without striking a viable deal to bring normality to the body politic they brag about, it is perhaps a good time for the befuddled world to start considering building a de-Americanized world,” said Xinhua.
China is the biggest international holder of U.S. debt at $1.28 trillion. The largest holder of U.S. debt actually belongs to the U.S. people. Yeah, we actually owe money to ourselves. Just don’t ask. It will give you a headache.
Jack Lew, the U.S. Treasury Secretary, has been warning Congress that countries have been circling, just waiting for the U.S. to slip up. He didn’t want to name names, but it is obvious that China is on that list.
For now, the U.S. government has until Thursday to raise the debt ceiling, or risk a default. If no deal is in place, countries may start to push for a new reserve currency that would involve a basket of currencies. It would be hard to blame them at that point. Hard to trust the U.S. government when it goes from one manufactured political crisis to another.
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