Chinese Think Tank Warns Geithner Over Trade War, Threatens To Dump U.S. Debt In Retaliation

This is what happens when you borrow trillions from your economic competitors.  The Dalai Lama has to leave thru the back door.

Ding Yifan, a policy guru at the Development Research Centre, said China could respond by selling holdings of US debt, estimated at over $1.5 trillion (£963bn). This would trigger a rise in US interest rates. His comments at a forum in Beijing follow a string of remarks by Chinese officials questioning US credit-worthiness and the reliability of the dollar.

China's authorities seem split over how to respond to moves on Capitol Hill for legislation to punish Beijing for holding down the yuan. The central bank has ruled out use of its "nuclear weapon", insisting that it would not exploit its $2.45 trillion of foreign reserves for political purposes. "The US Treasury market is a very important market for China," it said.

However, the mood is hardening on both sides of the Pacific. The dispute risks escalating if China's trade surplus with the US climbs further and more US jobs are lost. US Treasury Secretary Tim Geithner, who has taken a softly-softly line in the past, said on Friday that China had done "very little" to correct the undervaluation of the yuan since ending the dollar peg in June.

Mr Ding reflects thinking among some in the Poltiburo, who seem convinced that the US is in decline and that China's rise as an exporter of goods and capital give it the upper hand.

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Then there's that little problem when the Dalai Lama comes to town:

• MUST SEE: Perhaps The Most Important Photo In The History Of The Decline Of The United States (Dalai Lama leaves White House thru the back door)
  

Solidarity with Tibet and the Dalai Lama should never be subordinate.  Today, instead of Mother Liberty, we suckled at the breast of RED Chinese Totalitarianism.  Our principles are now vanquished and replaced by obligations of government debt.

• WSJ Dalai Lama slideshow (1960 to present day)
  

Maybe that's why Hillary sounded the alarm last week, while taking a shot at Obama over the national debt.

• Hillary Clinton Fires The First Shot For 2012: "Rising National Debt Is A Threat To National Security" (VIDEO)

Comments

[S. Gompers]

This is what happens when you try to borrow your way to prosperity, national sovereignty exit stage left. Instead of destroying America by force of arms, the great usurpers would rather use debt, unbalanced trade deals, outsourcing, offshoring, and a plethora of other toys from pandora's box.

Oh how Americans have worshiped the traitors...


“A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murderer is less to fear. The traitor is the plague.”


Marcus Tullius Cicero


“If you have a garden and a library, you have everything you need.”

Marcus Tullius Cicero

It is indeed unfortunate that our countrymen feel the need for neither of the last quote or the warning of the first quote, and servitude will be their reward after the great ping pong game ends.

[Aint Bullshittin']

Timmmayyyyyyy would be glad to pay them on Tuesday for a burger today....Ooops, you mean these guys want to be paid today for the ones we ate a decade ago? That is sucking the big one for Big O.

[DailyBail]

Well said gomp...

This is what happens when you try to borrow your way to prosperity, national sovereignty exit stage left. Instead of destroying America by force of arms, the great usurpers would rather use debt, unbalanced trade deals, outsourcing, offshoring, and a plethora of other toys from pandora's box.

[S. Gompers]

"Timmmayyyyyyy would be glad to pay them on Tuesday for a burger today....Ooops, you mean these guys want to be paid today for the ones we ate a decade ago? "

I loved that one... Many do not believe we are any hamburgers a decade ago.

[Howard T. Lewis III]

I feel deep shame in my heart when I see Tim Geithner as a representative of the U.S. as a tool of a diseased American foreign policy. Too bad Americans don't understand that if they don't like their government leaders, they have to get off their fat asses and fire them.
I have faith that they all will end up as slaves. They have too much faith in their mother's lies about their safety and personal blessedness. And I ask for understanding if I am not successful in bitch -slapping them into reality. China has provided America with quality products at a bargain and extensive credit. It is the citizens' job to make good. They were told about the debt. The stock market and American industry was gutted as they slept.

But then again, Timmy Geithner and his Bankster Buddies are ripping us off as they rip off China, knowing that their Pope-god forgives them. Most Americans do not believe in this debt. They were not shown the law by intent. They did not look by convenience. As the Sihks of Punjab say, "Truth is Eternal.".