China Challenges US Global Financial Leadership

In this March 6, 2009 file photo, Bank of China Governor Zhou Xiaochuan smiles during a news conference in Beijing's Great Hall of the People. The only major economy still growing at a fast clip, China is being unusually forthright in challenging the U.S.-led global order ahead of an April 2 summit on the financial crisis. In his second rebuke of U.S. leadership this past week, Zhou said China's rapid response to the downturn — including a 4 trillion yuan ($586 billion) stimulus package - proved the superiority of its authoritarian, one-party political system. (AP Photo/Alexander F. Yuan, File)

From Yahoo News/AP:

SHANGHAI – The only major economy still growing at a fast clip, China is being unusually forthright in challenging the U.S.-led global order ahead of an April 2 summit on the financial crisis.

In his second rebuke of U.S. leadership this past week, the central bank governor, Zhou Xiaochuan, said China's rapid response to the downturn — including a 4 trillion yuan ($586 billion) stimulus package — proved the superiority of its authoritarian, one-party political system.

"Facts speak volumes, and demonstrate that compared with other major economies, the Chinese government has taken prompt, decisive and effective policy measures, demonstrating its superior system advantage when it comes to making vital policy decisions," Zhou said in remarks posted on the People's Bank of China's Web site.

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My Comment: It was very revealing this week when China expressed their "concerns" on U.S. debt levels reaching record levels. It appears that the only opposition to President Obama's and the Democrat Congress's budget to spend and go into greater debt is coming from China.

From my point of view, the Chinese are right. They are already calling in America's "margin line", and they are very clear that they will not continue the buying of U.S. treasuries if this continues.

I guess our credit card is almost maxed out.