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debtors | nation

debtor nation Topic in The Credit Debacle Catalog

largest debtor nation (1); Pure Debtor Nation (1).

Jesse's Café Américain Sun 2010-07-25 09:33 EDT

China: The US Is "Insolvent and Faces Bankruptcy"

Jesse

The common thought amongst even reasonably educated and economically literate Americans is that China is 'stuck with US Treasuries' and has no choice, so it must perform within the status quo and do as the US wishes, or face a ruinous decline in their reserve holdings of US Treasuries...Guan Jianzhong, chairman of Dagong Global Credit Rating, told the Financial Times...``The US is insolvent and faces bankruptcy as a pure debtor nation but the rating agencies still give it high rankings'' Mr Guan said. ``Actually, the huge military expenditure of the US is not created by themselves but comes from borrowed money, which is not sustainable.''

China; faces bankruptcy; insolvent; Jesse's Café Américain.

naked capitalism Fri 2010-03-19 16:02 EDT

Calibrating differences between China and Japan's bubble blow-off top

Edward Harrison

...Is China experiencing a massive bubble or not? If so, will the bubble's inevitable pop spill over into the real economy in a nasty way as it has done in the U.S. and elsewhere?...My own point of reference has been the 1920s and the 1930s more than the 1980s and 1990s. In the 1920s, Great Britain played the role now played by the United States: military power, declining economic power, anchor global currency, and largest debtor nation. The United States played the role now played by China: rising economic and military power and `alpha creditor,' a phrase our Yves Smith coined. (The key difference is that the U.S. was more advanced relative to Great Britain than China relative to the U.S.)...China is effectively doing what France did by accumulating reserves despite fears of currency depreciation. I think this reserve policy is significant because this is what is behind all of the talk of protectionism and currency pegging. The Chinese are afraid that the U.S. are actively looking to devalue the currency while the U.S. are fed up with the peg and the resultant imbalances...

Calibrating differences; China; Japan's bubble blow; naked capitalism; Top.

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