U.S. debt approaches insolvency; Chinese currency reserves at risk

[TwixVoy]

Interesting article....

http://www.asianews.it/index.php?l=en&art=14054

". This would involve, in the first place, a valuation crisis for the dollar. After this, the United States could face a social crisis like that in Argentina in 2001. A crisis in U.S. public debt would likely have a severe impact on the Asian countries that are the main exporters to the United States, China first among them. Chinese monetary authorities, thanks to a steeply undervalued artificial exchange rate, by about 55%, have limited imports (including food) and have achieved an export surplus. This has allowed them to accumulate a large stockpile of dollar reserves. In a currency crisis, China risks losing much of the value of its accumulated currency reserves. At the same time, pressure on imports (wheat, other grains, and meat) have led to inflation in the prices of food, the most important expenditure for more than 900 million Chinese. This is nothing more than a small confirmation of the recent statements of the pope, in his message for the World Day for Peace, where the pontiff calls the current financial system and its methods "based upon very short-term thinking," "

[Mojorabbit]

1. That is a scary article

I hope we are too big to fail as far as the rest of the world is concerned.

[SoCalDem]

3. No one is too big to fail..

I fear that a bunch of "business school hotshots" have gambled away the wealth and good will of our county...and our lawmakers looked the other way, or aided them by making laws easy to skirt, and then did nothing to even try to enforce them..

We traded on our good name and in the end conned countries all over the world to buy into our "financial know-how".. and they now know we are charlatans,peddling worthless paper..and their economies are at risk now too..

We've all been "enroned"...

[Liberal_in_LA]

2. KICK. great article