So we all know that the US's credit rating got cut by a rank. At a recent G7 summit the worlds leaders have been discussing the United States. Well it would appear that the US's biggest lendor has run out of patience.

"The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone," China's official Xinhua news agency said in a commentary.

According to the news I was watching apparently China and possibly Japan may soon stop lending money to the United States unless they get their financial shit in order.

Xinhua scorned the United States for a "debt addiction" and "short sighted" political wrangling. China, it said, "has every right now to demand the United States address its structural debt problems and ensure the safety of China's dollar assets."

The Chinese Government seems pretty pissed. I mean China did invest and loan the United States a crap load of money. Now it would appear that China want's its money back or the US show them they can pay the piper. But what is China wanting to do to get the US to pay back its money and how does China want to stabalize the global economy?

China, the largest foreign holder of U.S. debt, took the world's economic superpower to task for allowing its fiscal house to get into such disarray. It also revived its calls for a new stable global reserve currency to replace the U.S. dollar, gaining a sympathetic ear in the United Kingdom.

Wow China seems pissed they wanna replace the US currency and even suggesting they may cut the US off. What will happen if China cuts the US off with Japan supporting the move. Then if China the UK and rest of the world replace the US currency what would that mean to the United States. Is China capable of going through with its threats?

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I'm no economist but I expect they are just trash talking.

Replacing the world currency is no easy thing to undertake and would require many, many years to transition. Even as bad as the US dollar is right now, it's still the most stable of the major currencies.

I agree with China on the halting the purchase of T-bonds (which I think they should have stopped doing many years ago) but I don't think they'll bet able to get a new reserve currency standard going unless the US dramatically implodes.

It is not only China or UK that want to replace the Dollar basically it is half the world who wants, only need the solve the question with what they will replace it;

stable?

they keep it that way by borrowing

no currency is stable for long

the country needs to keep it at the level of borrow

5 midgets are standing in line.  The one at the end is the tallest of all 5.  Does that mean he's tall or just taller than the others?

When I said the US dollar was the most stable, that doesn't mean it is stable, just more so than the other major curencies.

china is the new superpower so it can do what it wants. at least that's what the US did when it was a superpower.

They have a long, long way to go till they reach our status.  Don't believe all the doom day non-sense.  They are rapidly becoming a strong country, but in the grand scheme of things, they have a very long way to go still and that's to even be at our 'current' state.

I think China already stopped investing in the dollars quite a while ago. Could be a year or 2 ago.

I heard they moved a little to the euro though that might be on the verge of collapse now.

and i said its not

us government is just keeping it stable but that won't go for long as they can't just keep on borrowing.

you have to repay the debt too.

dollar is stable as US isn't the country it used to be and the government is borrowing to keep it at the old rate