Yuan Gangming, a researcher with the Chinese Academy of Social Sciences, a government think tank, smelled some political wrangling behind the U.S. debt debate as the 2012 presidential election draws nearer and said Republicans “want to make things difficult for Obama.”
But with time running short before the U.S. Treasury exhausts its borrowing room, Yuan said default was a real risk.
“The possibility is quite high to see a default of the U.S. debt, which would harm many countries in the world, and China in particular,” he said.
Remember when Republicans like Mark Kirk (see photo above) were working to hamstring Obama on a bigger stimulus package by essentially telling the Chinese leadership not to loan the US any more money now that Obama was president because his budget numbers couldn’t be trusted? Even some conservatives reamed Kirk out for that move.
Have the Republicans totally forgotten that Kirk did this — and most of them approved? Do they think the Chinese are stupid? Now the Chinese are learning that it’s the Republicans whose word they shouldn’t be trusting when it comes to money.
By the way, why aren’t there any quotes in here from the anti-debt bond vigilantes and the Pete Peterson crowd talking about how a brief default will be totally worth it if it leads to less debt in the long run? I mean, isn’t that who the Republicans are doing this for?
(Crossposted at Renaissance Post and Mercury Rising.)