China is speaking out, and it’s apparently not happy. As the world sits on pins and needles, watching the unnecessary man-made crisis going on in Washington in reference to raising the debt ceiling, China, the biggest “investor” in the United States economy, is voicing their displeasure, calling Washington’s antics “political brinkmanship” and “dangerously irresponsible.”
The piece was written by the government controlled, Chinese State Media, and is attributed to Xinhua, and written by Deng Yushan.
As the Aug. 2 deadline approaches for Washington to raise its borrowing limit and avoid a catastrophic debt default, deeply divided U.S. politicians remain stubbornly engaged in what is widely seen as a game of chicken.
Given the United States’ status as the world’s largest economy and the issuer of the dominant international reserve currency, such political brinkmanship in Washington is dangerously irresponsible, for it risks, among other consequences, strangling the still fragile economic recovery of not only the United States but also the world as a whole.
Analysts worldwide have already painted a grim picture. Although an exact outcome of a Washington unable to pay its bills is yet to be known, they warn that a U.S. default would trigger massive repercussions throughout global financial markets.
The piece also laments the reality of divided government in America, and refers to the “donkey and the elephant,” saying,
It is arguably true that the ongoing tug of war in Washington is Uncle Sam’s own business, as the United States has not yet defaulted on its debt. However, the ugliest part of the saga is that the well-being of many other countries is also in the impact zone when the donkey and the elephant fight. The potential collateral damage is way too heavy.
With leadership comes responsibility. It is unfortunate and disappointing that when political leaders in Washington spar over who is doing good for their country, they take little account of the world’s economic soundness.
With less than 3 days before the August 2nd deadline, negotiations are ongoing. The plan that is drawing the most attention now is the Reid Plan, that calls for Zero revenue and $2.4 trillion in spending cuts. The point of contention between Democrats and Republicans now is the timing and a Constitutional amendment. Democrats want the debt ceiling to be raised past the next election in November 2012, while Republicans want it raised for a few months. Republicans are also trying to get a “balance budget amendment” added to the constitution – a measure being pushed by the Teaparty.0