China Says US On Way To Default While Implying America Is Falsifying Its Accounting

Dow Jones Reports That A Chinese Think Tank Has Implied America May Be Falsifying Its Accounting And Says The United States Is On Its Way To Default

The Dow Jones news wire reports that a Chinese Think Tank has stated that “the U.S. may be on its way to default on its debt despite the U.S. government’s ability to print more money” which went on to implicitly accuse the US of fabricating economic data.
Zero Hedge reports:

Chinese Think Tank Implies America May Be Falsifying Its Accounting, Says US On Way To Default

Submitted by Tyler Durden
08/21/2011 21:31 -0400
Joe Biden came to China, saw, and failed to conquer the locals’ ridicule.
Punctuating just how “effective” Biden’s visit to China was in order to “reassure that the US is solvent” (no seriously, that’s the name of the article) is a just released article in the Securities Times by Wang Tialong, member of Chinese think tank Center for International Economic Exchanges in which he went on to blatantly say that “The U.S. may be on its way to default on its debt despite the U.S. government’s ability to print more money, a Chinese think tank researcher said Monday.”
Now this is nothing new in the escalating war of words between the two countries, although increasingly China appears to be attacking the primary loophole that defenders of the unsustainable US debt use, namely the fall back to the USD as a reserve currency.
Wang went on further to implicitly accuse the US of fabricating economic data: “There is also no way to punish the issuer country if it falsifies its accounting and there is no way to restructure the issuer either, Wang said.”
Well, when China accuses the US of “falsifying accounting” you know you have hit rock bottom.
From Dow Jones:

The U.S. may be on its way to default on its debt despite the U.S. government’s ability to print more money, a Chinese think tank researcher said Monday.
There is no guarantee for sovereign debt, which increases the risks the lenders face, said Wang Tianlong, a researcher at the China Center for International Economic Exchanges, a think tank supervised by the country’s economic planner, adding that the issuer could be more careless in using the loans.
In the short term, the U.S. doesn’t have much ability to reduce its deficit, Wang said in an opinion piece published in Securities Times. He added that the U.S. lacks the political system to guarantee that it will not default on its debt.
There is also no way to punish the issuer country if it falsifies its accounting and there is no way to restructure the issuer either, Wang said.
Wang’s comments come after the U.S. Vice President Joe Biden said Sunday the U.S. “never will default” on its government debt and reassured Beijing that Chinese investments in the U.S. are safe.

Slowly, surely, China is realizing that the endgame is nothing short of out of control debt inflation, which is precisely what having no way to “restructure the issuer” means.
That plus sending the US to bankruptcy court may be somewhat problematic.
It also means that Chinese holdings of US debt will be increasingly worthless, and its population increasingly stabby as the price of hogs resumes its record climb.
The only alternative is for the CNY to float and for the Chinese, Russians and Germans to say enough to this broken economic model and launch a gold (and other hard asset) backed currency. The only question is when.
h/t London Dude Trader
Source:Zero Hedge

Of course, implying that the U.S. is falsifying economic data is not without basis.
As previously reported, NPR says the real national debt is $211 trillion and not the official $14 trillion number and of course that is only the tip of the iceberg when it comes to manipulating economic data to cover up the financial terrorism the elite wages on the lower 99.99% of the population.
As another example, look at the historical Dow stock market chart when priced using government manipulated monetary techniques.

Dow Jones Historical Chart As Priced Using The Government's Monetary Manipulation Techniques

Now, lets remove the slight of hand by comparing the chart above to the price of the Dow when price in terms of gold, instead of a manipulated U.S. dollar.

80 Years of the Dow Gold Ratio show a huge crash in the stock market being covered up by The U.S government's manipulation techniques

Of course, there are many more examples from as dodgy accounting practices used by U.S. banks to hide toxic assets on their balance sheets to the Federal reserve’s manipulation of all kinds of economic statistics to push their agenda.
Hell, by design the Fractional reserve banking system is nothing more than a ponzi scheme itself.