Wednesday, August 3, 2011

The agreement of the U.S. debt don't calm down Chinese creditors

China, the main creditor of the United States, see the last-minute agreement reached at the Congress of American country to avoid bankruptcy as a short term solution, but distrust the future of their economy, according to today released the official Journal the People. "Although the U.S. has avoided bankruptcy, the sovereign debt problems remain unresolved and only have been postponed for later," the paper said spokesman of the Communist Party of China in an editorial.

He also noted that the debt problem "has generated a cloud of uncertainty over the U.S. economic recovery, and increased the risks facing the global economic system." The international consultant rating Standard & Poor's warned it might lower the rating of U.S. debt. UU. despite the agreement, which will affect China, the main buyer of U.S. bonds with a total of 1.16 billion. "You can not rule out the possibility of a decline in the debt rating if Washington fails to balance its long-term debt," Chen said about Daofu, director of the Center for Policy Research of the State Council of China, Speaking to the official "China Daily".

The instability that the question of debt can result in the dollar also is concerned in China because this money represents 70 percent of its 3.2 trillion foreign exchange reserves. Chen warned to seek alternative investments for China's reserves and change their composition "is a critical challenge for policy advisors in Beijing," but for the dollar People's Daily "is still a strong currency that all countries must accept although they do not want."

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