China Starts to Set Limits On Its Biggest Borrower: Barack Obama and The U.S.

China is starting to dictate rules to President Obama and the the United States.  We’ve written here before that China owns America and will probably own more soon.  Just as President Obama decided it was appropriate to criticize Wall Street bonuses (after all, those banks are getting bailout money) China is now saying they need the U.S. to follow some rules in order to keep our debt financing afloat…You take a guy’s money and he owns you or he breaks your legs…

Related:
Economic Stimulus About “Soul of America”

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By TOM RAUM, Associated Press Writer

China recently surpassed Japan as the U.S. government’s largest creditor. Any decision by Beijing to move its money would deal a dizzying new blow to an already tottering American economy. Yet relations between China and the new Obama administration are off to a rocky start.

For now, Beijing continues to loan Washington money by buying Treasurys and other U.S. government securities, helping to finance the ever-growing U.S. budget deficit. But there are signs its leaders may be considering trimming these holdings as that country experiences its own economic slowdown. Strains between the two economic powerhouses seem to be growing with the change in administrations.

The latest irritants are a “buy American” provision attached to White House-backed stimulus legislation moving through Congress and criticism of China’s currency policies by Vice President Joe Biden and Treasury Secretary Timothy Geithner.

Geithner accused Beijing of “manipulating” its currency during his Senate confirmation process.

An outside view of the New York Stock Exchange on Wall street. ...

Biden, interviewed Thursday by CNBC, said that the Obama administration would “say to China — which occasionally the last administration was reluctant to do — ‘You’re a major player on the world scene economically, and you’ve got to play by the rules that everybody else plays by.'”

Their comments followed a move by Chinese censors to silence part of a live broadcast of Obama’s inaugural address when he spoke of the U.S. struggle against communism.

And at an economic forum in Switzerland on Wednesday, Chinese Premier Wen Jiabao blamed China’s economic woes on U.S.-led Western financial institutions, suggesting “a lack of self-discipline” and “blind pursuit of profit.”

The pointed words from Geithner and Biden were widely seen as an escalation of old complaints that China artificially depresses the value of its currency to bolster its exports, even though the White House has sought to play down such comments and has denied increasing friction with China.

China has allowed the value of its currency to rise by 21 percent over the past two years. But American manufacturers complain the Chinese yuan is still significantly undervalued, making Chinese goods cheaper for U.S. consumers and American products more expensive in China.

Related:
China May Have Mafia View of Obama Stimulus: “Someday We Break Your Legs”

Read the rest:
http://news.yahoo.com/s/ap/20090130/a
p_on_go_pr_wh/us_china_strains_analysis_2

Related:
 Russia Wants Something From Obama: Carrot and Stick Diplomacy

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Obama Slams Wall Street For Bonuses

WASHINGTON (AFP) – President Barack Obama furiously slammed Wall Street titans who raked in billions in bonuses while taxpayers bailed out their industry as “shameful” and guilty of acute “irresponsibility.”

Obama, anger flashing across his usually calm countenance, said bosses of big finance firms must sacrifice along with other Americans, as the country tries to dig itself out of a deep economic hole.

The president’s ire was sparked when he read a newspaper article detailing the 18.4 billion dollars in bonuses collected by Wall Street firms last year, even as stock markets plunged and the economy slumped towards a recession.

“That is the height of irresponsibility. It is shameful, and part of what we are going to need is for the folks on Wall Street who are asking for help to show some restraint and show some discipline and show some sense of responsibility,” Obama told reporters in the Oval Office.

Read the rest:
http://news.yahoo.com/s/afp/20090130/bs_afp/
uspoliticsobamafinanceeconomytaxbonuses_200
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