China warns U.S. debt-default idea is "playing with fire"

Townhall.com Staff
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Posted: Jun 08, 2011 9:31 AM
China warns U.S. debt-default idea is "playing with fire"
SINGAPORE (Reuters) - Republican lawmakers are "playing with fire" by contemplating even a brief debt default as a means to force deeper government spending cuts, an adviser to China's central bank said on Wednesday.

The idea of a technical default -- essentially delaying interest payments for a few days -- has gained backing from a growing number of mainstream Republicans who see it as a price worth paying if it forces the White House to slash spending, Reuters reported on Tuesday.

But any form of default could destabilize the global economy and sour already tense relations with big U.S. creditors such as China, government officials and investors warn.