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Warning On Debt Ceiling From China
By KTM Metro Reporter
June 9, 2011: the news posted on Usatoday.com has stated that an adviser to the People's Bank of China Li Daokui has told reporters in Beijing, "I think there is a risk that the U.S. debt default may happen." And he puts the blame on congressional Republicans. "The result will be very serious and I really hope that they would stop playing with fire," he said. "I really worry about the risks of a U.S. debt default, which I think may lead to a decline in the dollar's value," Li said.
According to the news report, China holds more than $1 trillion in the US Treasury debt as of March. US President Barack Obama has been urging the Congress to increase the debt ceiling to $14.3 trillion. The Republican-controlled Congress has been asking the White House and Democrats agree to major spending cuts as a condition for increasing the debt ceiling.
