US Debt Stand-Off Provokes Ire Among China’s Officials
From the Financial Times:
Washington’s debt brinkmanship has provoked deep anger in Beijing and bolstered its resolve to lessen the world’s reliance on the dollar, according to current and former Chinese government advisers.
Political leaders in the US have intensified talks about their fiscal stand-off, fuelling hopes that Washington will raise its debt ceiling before next week’s deadline.
However, the prospect of last-minute negotiations will test already-frayed nerves in China, the biggest foreign holder of US government debt.
“You can’t hijack the global economy through political struggles. It’s not responsible,” says Yu Yongding, a member of the Chinese Academy of Social Sciences, a leading government think-tank.
“We are angry but are not panicked. The consequences are bad for the reputation of the US because the credibility of debt is so important,” says Mr Yu, who is also a former adviser to the central bank’s monetary policy committee.
Apparently our ignorant Teahadis don’t realize that being the world’s reserve currency is as important a power source as our military; they’re willing to toss that away for short-term domestic political gain. And then they do it so badly they don’t even get the short-term domestic political gain out of it.