China Worried About Its Investment In American Economy
Who can blame them, frankly?
BEIJING — Premier Wen Jiabao voiced confidence in China’s economy, saying his government’s finances give it room to spend even more to support growth if needed, but expressed concern about the outlook for the U.S. and the safety of its Treasury bonds.
The forceful comments from Mr. Wen’s annual press conference — a rare opportunity for domestic and foreign reporters to ask a top Chinese official questions directly — helped depress the U.S. dollar and prices of U.S. Treasurys in Asian trading Friday.
The public airing of his concerns reflect how the relationship between China and the U.S. has been evolving under the pressure of the financial crisis. For years the U.S. has pressed China to change the way it runs its economy, such as by opening up its financial system. But in the last year China’s government has been increasingly vocal about what it sees as U.S. economic mismanagement. And as the U.S. government’s largest creditor, it has become more assertive in trying to ensure its interests receive a hearing.
“We have lent a huge amount of money to the U.S., so of course we are concerned about the safety of our assets. Frankly speaking, I do have some worries,” Mr. Wen said in response to a question. He did not offer specific suggestions on economic policy to the U.S. government, but called on it to “maintain its credibility, honor its commitments and guarantee the security of Chinese assets.”
This comes less than a month after Obama dispatched Hillary to China to beg them to keep buying up all the debt Obama’s spending agenda is creating. Clearly, as the Chinese regime expresses concern over our government’s ability to stay current on its debts, deficit spending can no longer be an option for the nation.
But that doesn’t seem to be troubling Obama, the liberals and (sadly) the supposedly “limited government” Republicans who are in charge as they continue to spend in a manner that would be an insult to drunk sailors. I mean, drunk sailors pay to get tattoos. They don’t pay to get them removed.
