Everybody's concerned about America's new heights (depths?) of debt. NYT: "China's leader says he's worried over U.S. treasuries"
The Chinese prime minister, Wen Jiabao, spoke in unusually blunt terms on Friday about the “safety” of China’s $1 trillion investment in American government debt, the world’s largest such holding, and urged the Obama administration to offer assurances that the securities would maintain their value.Sounds like somebody's been hanging out with former Commerce secretary-designate, New Hampshire Senator Judd Gregg:
Speaking ahead of a meeting of finance ministers and bankers this weekend near London to lay the groundwork for next month’s Group of 20 summit meeting of the nations with the 20 largest economies, Mr. Wen said that he was “worried” about China’s holdings of United States Treasury bonds and other debt, and that China was watching economic developments in the United States closely.
In his opening statement, Gregg politely called the administration’s budget forecast a lie.And here's Warren Buffett on the plan to throw money everywhere:
"The argument that it cuts the debt in half in four years is, ahh, is truly spurious," he told Geithner.
"The argument that this budget doesn’t have tax increases [on everyone] is, I think, an 'Alice in Wonderland' view of the budget," he said.
He challenged the budget's math on cutting the debt: "When you take the deficit and quadruple it and then you cut it and half, that’s like taking four steps back and two steps forward. That's not making any progress; you’re still going backwards."
I don't think anybody on December 7th would have said a `war is a terrible thing to waste, and therefore we're going to try and ram through a whole bunch of things and--but we expect to--expect the other party to unite behind us on the--on the big problem.' It's just a mistake, I think, when you've got one overriding objective, to try and muddle it up with a bunch of other things.It's hard to believe I once flipped out over a half-trillion dollar deficit when deficits for the next decade will rarely fall below that level even if you accept Obama's delusional growth estimates.