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BIDEN to sell debt ceiling deal during trip to China, Japan – The Hill’s On The Money

August 15, 2011

Biden to sell debt ceiling deal during trip to China, Japan

By Erik Wasson – 08/15/11

Vice President Biden will tout the debt-ceiling deal during a trip to China and Japan, two huge holders of U.S. debt.

Vice President Biden will tout the debt ceiling deal during a trip to China and Japan, two holders of huge amounts of U.S. debt.

Biden will travel to top lender China on Wednesday and to Japan, the second-biggest holder of U.S. bonds, on Aug. 22.

The vice president “will be in a good position to talk about the very strong deficit package that we concluded here recently,” Undersecterary of the Treasury Lael Brainard told reporters Monday in comments previewing the vice president’s visit.

The debt-ceiling deal signed by President Obama could cut up to $2.5 trillion from budget deficits over the next decade, but it was a smaller package than the grand bargain Obama flirted with striking.

Standard & Poor’s downgraded the nation’s AAA rating to AA+ a few days after Obama signed the legislation. S&P had called for a $4 trillion package, and said it was left uncertain that U.S. politicians could agree to a larger deficit-reduction package.

But Brainard defended the bill, calling the Budget Control Act is a “major step” toward tackling the country’s “major fiscal and economic challenges.” She noted that “there continues to be extremely strong investor demand for U.S. Treasury securities.”

via Biden to sell debt ceiling deal during trip to China, Japan – The Hill’s On The Money.

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One Comment
  1. August 15, 2011 6:32 PM

    I’m not so sure that China’s really bothered about the debt ceiling, but more that the government is in a position where it needs to be seen taking some sort of action regarding the debt as there’s so much concern from the people regarding the huge position in American debt that China currently holds.

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