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Currency News – China Upset With Debt Situation In US

It is no secret that the Chinese administration is not satisfied with the way the US is handling their debt crisis – they are the largest creditor to the US after all. They have been traditionally conservative when it comes to finances – a sharp contrast to what the US approach is.

But, it’s not just the Chinese government that are getting upset – it’s the Chinese people as well…

They are wondering why their administration has allowed an outside event like this have such a huge impact on their economy. They are the ones who are lending the money and making a lot of the decisions – why have they continued to act in a way that has led them to be put in this position.

It will be interesting to see if any unrest starts to develop, but as it stands now, there is almost no one that is happy with the way the US is dealing with their debt issues.

Are There Bigger Problems Than Debt?

Everyone thinks that the major problem we are facing right now is debt. In simple terms, this is true. But, how are we going to deal with this problem? It’s not like money is going to start appearing out of thin air. Something big has to change.

A lot of analysts are starting to think that we are going to experience a sort of “reverse globalization” and go back to a system like that was used in the first half of the twentiefth century – protectionism, isolationism and such.

Whatever the case, some major changes need to take place if we are going to get out of the situation we are in = it will be interesting to see what happens.

Actions By G7 Leaders Don’t Stop Market Drop

Even though the G7 leaders vowed to take significant action is helping stabilize the global economy, it seems as though their actions had little effect. The ECB bond buying effort in regards to Italy and Spain was pretty much fruitless, and everyone continues to lose confidence in the fact that the US can get its budget under control.

President Obama called for more taxes to help pay for the debt issue, but the Republicans were having nothing of it – they will never let something like that pass at a time like this.

There is so much wealth being swept off the table every day – something needs to be done soon before we all fall into another worldwide recession.

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