[henkster]

“To rescue the ailing U.S. economy by increasing government borrowing will create a record-high federal deficit,” said Yu Zuyao, economist with the Chinese Academy of Social Sciences, a government think tank.

“This can further lead to catastrophic consequences such as serious inflation and U.S. dollar depreciation,” he said Tuesday.

NFS!!!!

[Ernest_at_the_Beach]

Couple this warning with Putin's warning at Davos ....FR Thread:

Putin warns US to eschew socialism

[mojito]

Sure, China, porkulus is inflationary.

But that's not stopping you from buying all the US Treasury securities you can get your hands on.

You could buy yen, you could buy gold, you could buy euros; but you're not.

[YellowRoseofTx]

I was thinking today, with the "stimulus package" and the announcement today about a housing bailout, and you know there will be more, these idiots are spending like there is a never-ending well of money.

China is going to stop lending because we aren't going to be able to pay it back. We are going to experience inflation here. Some people, who haven't lost jobs, are going to stop working so they don't have to pay so much and want on the gravy train. This isn't going to end good.

[Oldeconomybuyer]

Now I’m worried. The communists are worried about communism.

[chiefqc]

If this empty suit continues to cause more money problems with other countries I’m concerned he may not reach the end of his one time term in office.

Money talks, the rest walks.

[UCFRoadWarrior]

No sympathy for the ChiComs...

They have benefited so much from the bad Free Trade deals...the US has shipped millions of good jobs and wealth to Communist China...and stuck the US with trillions in trade deficits.

China decides to buy our debt...and, by golly, the US may not be able to pay up.

This situation is nothing more than the US running a massive debt, first by shipping jobs to Communist China....then owing trillions to Communist China as they bought US treasuries.

The ChiComs are like the credit card issuer...and the US can’t make the payment.

Which as much means supporters of Free Trade are pretty much fools and idiots. Free Traders were the same ones who claimed “trade deficits are good”. Yeah, right

I am sure we will now hear some moronic solliquy on how Smoot-Hawley caused the Great Depression...blah blah blah.

We know now, that Free Trade had a major impact in this economic downturn...and no Free Trader parsing bad economic theory is going to change that fact.

Next: I predict Communist China starts practicing more “Protectionism”

[genghis]

this bubble is popping soon.

[SunkenCiv]

Being the largest holder of U.S. Treasury securities, China had reason to be concerned about that possible depreciation

Heh... thanks Ernest. Still no explanation on how the gov't can borrow money to bail out banks. ;'D

[LuxMaker]