China Seeks Guarantee

China Seeks Guarantee. 2/12/09.

Mr. BURTON of Indiana. China yesterday said that they held $682 billion of our debt and that they were very concerned about the "reckless policies'' of our spending. And they were concerned so much that they contacted our new Secretary of the Treasury and said, We want some kind of a guarantee that our money is going to be worth something if you guys keep spending so much over there and devalue not only your currency, but the currencies throughout the world.

Well, today China reversed its position and said--Luo Ping, the Director General of the Chinese Banking Regulatory Commission--said in a speech in New York, ``We're still going to buy your Treasuries because where else are we going to put our money, because the United States is still the biggest economy and the best place to put our money. But we're really upset with you because you're devaluing your currency, and you're going to be devaluing ours as well.''

And he said this, ``Except for U.S. Treasuries, what can you hold? Gold? You don't hold Japanese government bonds or UK bonds. U.S. Treasuries are still the safest haven. For everyone, including China.'' But, you're devaluing your currency over there, and we don't want ours devalued, but we don't have anyplace to go.

He said further on, ``We hate you guys,'' using his language, ``We hate you guys. Once you start issuing $1 trillion, $2 trillion or more in dollars, we know the dollar is going to depreciate, so we hate you guys, but there's nothing else we can do.'' Now what does this tell us as Americans?