China: America's Debt Antics Assure Euro's Safety

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"China hopes the U.S. administration and Congress would take responsible policy measures to handle its debt issue in light with the interests of the whole world including those of the United States," Zhou added.

"China would continue to seek diversification in the management of reserve assets, strengthen risk management, and minimize the negative impacts of the fluctuations in the international financial market on the Chinese economy," Zhou said.

China needing a hedge against the dollar means that the distressed Euro is ultimately safe. 

The yen is strong and stable -- perhaps too strong given the sluggish Japanese economy; its triple disaster of earthquake, tsunami and nuclear calamity; and a declining population -- but the Euro gives China the only other global currency of quality and scale to acquire.

A number of correspondents checked in with America's biggest financier, the People's Republic of China, after President Obama signed the debt ceiling deal passed by the Senate and House of Representatives.

Xinhua reports that China was generally satisfied that a deal went through -- but China Central Bank Governor Zhou Xiaochuan also promised that China would diversify further its foreign exchange reserves.

From the Xinhua report:

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Steve Clemons is Washington editor at large for The Atlantic and editor of Atlantic Live. He writes frequently about politics and foreign affairs. More

Clemons is a senior fellow and the founder of the American Strategy Program at the New America Foundation, a centrist think tank in Washington, D.C., where he previously served as executive vice president. He writes and speaks frequently about the D.C. political scene, foreign policy, and national security issues, as well as domestic and global economic-policy challenges.

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