Tuesday, October 8, 2013

China warns Washington to take quick action to avoid default on government debt

China warns Washington to take quick action to avoid default on government debt

If President Obama and Congress do not vote to increase the nation's debt ceiling, the fallout will hurt world's economy. China is particularly vulnerable due its $1.3 trillion investment in U.S. Treasury bonds and Vice Finance Minister Zhu Guangyao has spoken out about the possibility of default.

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Specilaist Fabian Caceres works  on the floor of the New York Stock Exchange Monday, Oct. 7, 2013. The stock market is opening sharply lower as the U.S. government heads into a second week of a partial shutdown with no signs of a budget agreement in sight. (AP Photo/Richard Drew)

Richard Drew/AP

Specialist Fabian Caceres works on the floor of the New York Stock Exchange. The stock market is opening sharply lower as the U.S. government heads into a second week of a partial shutdown with no signs of a budget agreement in sight.

WASHINGTON — A nervous China warned Washington Monday to stop messing around.
As stocks slumped on Wall Street and around the world, China called for quick action by Washington to avoid what would be a calamitous default on U.S. government debt....


Read more: http://www.nydailynews.com/news/politics/china-warns-washington-action-avoid-default-article-1.1479125#ixzz2h8bDRZXt

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