US downgrade 'sounds alarm bell': China media

Standard & Poor's US debt downgrade was a wake-up call for the world, a commentary in a top Chinese state newspaper said, adding that Asian exporters faced special risks.

Citing economist Sun Lijian, the People's Daily on Sunday said Standard & Poor's Friday cut to the US' credit rating from the top notch triple-A to AA+ had "sounded the alarm bell for the dollar-denominated global monetary system".

ece follow a stinging attack launched by the official Xinhua news agency on Saturday, which said Beijing had "every right" to demand Washington safeguard Chinese dollar assets.

The comments carried in the Communist Party mouthpi

China -- which sat on the world's biggest foreign exchange reserves of around $3.20 trillion as of the end of June -- is the largest foreign holder of US Treasuries.

--------------------------------------------------------------------------------

http://news.yahoo.com/china-hits-us-debt-addiction-downgrade-115303087.html

If the US were on the other side of this, and we owned China debt, we would be saying the exact same thing. And if we did not, once again, there would be something wrong with our politicians!

China urges US to lift export controls

WASHINGTON — China Monday urged Washington to lift export and investment controls directed against Beijing, saying such a move could go a long way towards conquering the steep trade imbalance between the two powers.
But in their annual bilateral dialogue, US officials continued to press Beijing over its allegedly undervalued yuan as a way to redress China's $273 billion trade surplus with the United States.
"The way to resolve this imbalance is to ease the export control regime of the United States towards China and to encourage US exports to China rather than restricting Chinese exports to the United States," Chen Deming, the Chinese trade minister, told reporters.
Chen said Washington's forex argument over the trade issue between the world's two largest economies "is not founded."
---------------------------------------------------------
It will help if the US exhibits a "pair" of guts! Negotiations with China need to be a little hardcore vs. what they have been for say 2 years (but prob. more like 20 years over certain administrations) . You really have to spine up if you are going into a room with the "new" world leaders that have been eating your lunch for for so long, and their currency manipulation allows them live a quality life while growing a country of epic proportions.

www.1mjl.com

https://twitter.com/#!/1mjl 

Michael Lebb