Just read Reuters article
China warns U.S. debt-default idea is “playing with fire”
http://www.reuters.com/article/2011/06/08/us-usa-debt-bondholders-idUSTRE75718320110608
As I said in article “Hide and Seek” back in May, US shouldn’t even breathe a word about defaulting on their debt. The issue still dragging on till now (mid June). Finally, Big Brother China couldn’t take it anymore and scolding US not to even go there. US listen to Big Brother or another global financial crisis will unfold… not happy to be proven right on this. US will probably be kick out of the exclusive “rich countries club” if ever this happens…. how can you ever pay trillions of dollars in debt and still “maintain” your standard of living (or spending> borrowing?)
There could be a flight from US Dollar – where will the money go? Euro ? Nahhhh similar problems. Emerging economies with growth are already targets. Exporters prepare to hurt!
