REUTERS: Republican lawmakers are “playing with fire” by contemplating even a brief debt default as a means to force deeper government spending cuts, an adviser to China’s central bank said on Wednesday.
The idea of a technical default — essentially delaying interest payments for a few days — has gained backing from a growing number of mainstream Republicans who see it as a price worth paying if it forces the White House to slash spending, Reuters reported on Tuesday.
But any form of default could destabilize the global economy and sour already tense relations with big U.S. creditors such as China, government officials and investors warn… (more)
I suspect the Chinese are beginning to realize they have loaned $2 trillion to Tony Soprano and are not likely to ever get it back. After all, our government will cut the basic necessities of its own people rather than tax the top 1%, why would the U.S. be any nicer to the Chinese! We’re spending money surrounding them with missiles and military bases, now threatening to default — the picture is no doubt getting clearer to the Chinese leadership.