To Shut Down Washington, Republicans Must Ask China’s Permission First

China could step in to influence the latest political squabble in the United States by slowing down its purchases of US Treasury debt. A small group of conservative Republicans in US Congress want to slash spending and forced a shutdown of many government operations, while demanding a delay in a health care law, even though that has already slowed rising US health costs. Overseas creditors don’t care much about the government shutdown or US health care, but they do oppose a default on US debt, which is looming because of Republican opposition. Congress must approve lifting the arbitrary debt limit, one that’s been lifted numerous times before without protest. “If the creditor nations were to sell just a small proportion of their American assets, they could send Wall Street into a tailspin…,” writes Eamonn Fingleton for Forbes. “The creditor nations are long-term holders who are largely indifferent to short-term fluctuations.” A stable US economy is in the global interest. China could be key to encouraging US politicians to practice good governance. – YaleGlobal