News Column

U.S. at 'Pernicious Impasse' on Debt Deal, China Says

October 14, 2013

UPI Business News

chinese money

China's state-run news agency said it was time to move away from the U.S. dollar as the world's reserve currency, given the political climate in Washington.

The news agency Xinhua, in an opinion piece, said Washington had reached a "pernicious impasse."

China is holding about $1.3 trillion in U.S. Treasury bonds, making it the largest foreign investor in U.S. bonds, the Los Angeles Times reported Monday.

But the security's reputation as an icon of stability is threatened with lawmakers unable to agree to a bill that would raise the debt ceiling, which would allow the government to continue paying its bills past Oct. 17, the date the Treasury has estimated the government would run out of money.

"As U.S. politicians of both political parties are still shuffling back and forth between the White House and the Capitol Hill without striking a viable deal to bring normality to the body politic they brag about, it is perhaps a good time for the befuddled world to start considering building a de-Americanized world," the Xinhua news agency said.

"Most recently, the cyclical stagnation in Washington for a viable bipartisan solution over a federal budget and an approval for raising debt ceiling has again left many nations' tremendous dollar assets in jeopardy and the international community highly agonized," Xinhua said.

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Original headline: China carps about debt ceiling crisis

Source: Copyright 2013 United Press International, Inc. (UPI).

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