China (you may have heard of it), home to over a billion people and also noted for being one of the largest lenders in the world, has had enough with the GOP. Vice Finance Minister Zhu Guangyao has warned the U.S. that the current government shutdown could also throw the country into a credit downshift, resulting in dire financial straits for the economic recovery not just at home, but for the rest of the world, too. Mr. Zhu, in his address, called the U.S. and China “inseparable” — furthering reports that a credit downgrade would heavily affect China’s economic growth as well, as China is the United States’ biggest creditor, after having invested (and currently continuing to invest) huge amounts of money in U.S. Treasury Bonds.
Yet Mr. Zhu also said that the “clock is ticking” — an ominous line. If the U.S. government refuses to reach an agreement over the Oct. 17 fiscal cliff, it could result in a perhaps worldwide repercussion.
The U.S. government currently runs on a (staggering) $60 billion a day, and if an agreement isn’t made by Oct. 17, the U.S. only (!) has around $30 billion in reserve to cover the costs. Meaning that midway through Oct. 17, we could be officially out of money.
Perhaps the U.S. could stop the war in Afghanistan, which is costing American taxpayers $6,000 a second, $360,000 a minute, and $21,600,000 an hour.
Just a thought.