China calls for US Credibility

[Guest ShaQuaNew]

"We have loaned a huge amount of money to the United States," Wen said at a news conference in Beijing. "Of course, we are concerned about the safety of our assets. To be honest, I'm a little bit worried. I would like for you [a Western reporter] to call on the United States to honor its word and stay a credible nation and ensure the safety of Chinese assets."

 

This places the US in a very humbling position. Especially when most Americans understand that you cannot spend your way out of debt. Yet, that's exactly what the current policies are attempting to do.

 

 

http://edition.cnn.com/2009/WORLD/asiapcf/....wen/index.html

[LeeFisher3]

With US banks lowering credit limits on long time customers with excellent credit and the current firedrill going on in Congress on how best to borrow and spend money I can see why China is concerned.

 

Hopefully our administration can calm their fears.

[IllinoisDave]

I think China realizes what most Americans (according to every poll I've seen) except for the die-hard pessimists do. That this administration is doing everything it can to pull us, and by extension the rest of the world, out of this financial mess as fast as is humanly possible given the scope of it.

 

Of course they're worried. We're all worried. But at least China is smart enough to know that it took time to get into it and it's gonna take time to get out of it. And panicking now before any of these measures have had time to work, or not work, isn't going to make their "investments" any more secure or worth any more.

[Guest Tony n Terrific]

GE had their AAA credit rating lowered to AA yesterday. GE maintained this excellent rating since 1956. Now there is talk that GE Capital the financing arm of this great corporation has become a liability to the company and could drag the General Electric Company down. Who would not breakout into a sweat seeing GE, GM, Citi Group and many others all going south all at once.

Now, today the new administration has recieved an F so far in handling the economic and administration of the countries affairs.

The tax and spend fanatics are saying now they need more stimulus money! Instead of having a plan they will just throw money at the problem.

China copied the Smith Barney Stock Company motto " In China we earn our money" In Washington we use Parker Brother's Monopoly game with funny money. There is a day of reckoning coming soon.

Edited March 13, 2009 by Tony n Terrific (see edit history)

[griz326]

I think China realizes what most Americans (according to every poll I've seen) except for the die-hard pessimists do. That this administration is doing everything it can to pull us, and by extension the rest of the world, out of this financial mess as fast as is humanly possible given the scope of it.

Premier Wen Jiabao's comment:

 

"Of course, we are concerned about the safety of our assets. To be honest, I'm a little bit worried. I would like for you [a Western reporter] to call on the United States to honor its word and stay a credible nation and ensure the safety of Chinese assets."

 

...is akin to an elegant southern lady's "You poor dear." Or in street speak for the dense ones, "What the F*CK you doin' Obama!" It was definitely not an endorsement of US direction.

[IllinoisDave]

I think China realizes what most Americans (according to every poll I've seen) except for the die-hard pessimists do. That this administration is doing everything it can to pull us, and by extension the rest of the world, out of this financial mess as fast as is humanly possible given the scope of it.

Premier Wen Jiabao's comment:

 

"Of course, we are concerned about the safety of our assets. To be honest, I'm a little bit worried. I would like for you [a Western reporter] to call on the United States to honor its word and stay a credible nation and ensure the safety of Chinese assets."

 

...is akin to an elegant southern lady's "You poor dear." Or in street speak for the dense ones, "What the F*CK you doin' Obama!" It was definitely not an endorsement of US direction.

Of course you conveniently left out the very next sentence:

 

He (Wen) noted that Obama "has introduced a host of steps to tackle the international financial crisis" and said he has "high expectations" for those steps.

 

To imply, as you did, that Wen's concern is based solely on what's gone on since the current administration has taken office is purposely deceptive and characteristically partisan.

[georgeandli]

What else would China say? Even if they don't like our approach, what are their options? Saying anything more would be meddling in our internal affairs, and we all know China's' track record on that. The debt they own isn't like a bad business deal they can deduct on taxes.

[Sebastian]

This is not the first time this matter has risen. OK - maybe the first time this week, but there was other mention of this matter in the last 3 weeks as well.

 

I watched that news conference on the tv. I think ya took that quote out of context, as there was stuff said before and after 'this quote' that made it appear less threatening.

 

But that's ok - there were many other 'sound bites' generated at that news conference , and the foreign press is using most of them today.

Edited March 13, 2009 by Sebastian (see edit history)

[Daviation]

Anyone who is interpreting the opening article as good news for the US... instead of considering this in light of other significant current events like the conflagration continuing to unfold in the South China Sea... well, let's just say such an interpretation is incredibly naive.

[griz326]

The ONLY THING Premier Wen Jiabao said in that interview was:

 

>>>to call on the United States to honor its word and stay a credible nation

 

This is a TERRIBLE recrimination to be said publicly. It is WAY OUTSIDE of the traditional Chinese handling of such concerns.

[georgeandli]

Wonder if anything was said behind closed doors about holding off on repayment?

[IllinoisDave]

The ONLY THING Premier Wen Jiabao said in that interview was:

 

>>>to call on the United States to honor its word and stay a credible nation

 

This is a TERRIBLE recrimination to be said publicly. It is WAY OUTSIDE of the traditional Chinese handling of such concerns.

That wasn't an interview. That was a CNN report about PART of his NEWS CONFERENCE. And he said a whole lot more at that newser, including some of the things that were directly quoted in the written article. Including the fact that he has "high expectations" for the steps the Obama administration is taking.

 

Taken out of context the way you have of course it sounds like a "terrible recrimination." Taken with the other things he said it sounds more like what any national leader in his position would say about what's happening in the US economy. Sorry, but it's not the dire rebuke you make it out to be.

Edited March 13, 2009 by IllinoisDave (see edit history)

[lilac6451]

Today, I got from the news that American government wants Chinese government to buy more of their debt just for the bailout.

[Sebastian]

I watched the whole thing on cctv9 overnight - i'm sorry, cnn has taken out bits and pieces to try to make his comments something different, with a different spin.

[Sebastian]

Today, I got from the news that American government wants Chinese government to buy more of their debt just for the bailout.

 

 

lilac - ya - i had mentioned this several months ago - when the topic was 'where does the money come from for a bailout?' ..

 

it's basic stuff - the treasury prints more money, which is backed up by the issuing and buying of treasury bills. the usa sells it's t-bills to anyone who will purchase them - china is a good buyer, historically.

 

unfortunately, when the t-bill return rates range from 0 to 2 percent for payout, it's not a good deal anymore to purchase new ones.