China Warns U.S. About Debt Crisis

Seriously, did nobody teach Congress that you always tell creditors that you’re in good shape financially? Because China, the U.S.’s largest creditor, is not looking so reassured. A Chinese official warned the U.S. on Monday that the “clock is ticking” to avoid a U.S. credit default—which would hurt not only the U.S., but the global economy (and especially China). Vice Finance Minister Zhu Guangyao didn’t mince words: he said he hopes the U.S. “fully understands the lessons of history,” ominously reminding everyone of the 2011 credit downgrade. Calling the U.S. and China “inseparable,” Zhou asked that the U.S. “earnestly take steps to resolve” the issue. The U.S. has to vote to increase the debt ceiling by October 17 or face default.