Shadows on the ceiling – The Edge Review

BANDAR SERI BAGAWAN — The pre-summit chat was all about the absence of Barack Obama, but when pressed, Asian governments were quick to suggest that they had bigger concerns than the embattled American President’s no-show, with an October 17 deadline for the U.S. to raise its ‘debt ceiling’ hanging over the various summit meetings held in the Brunei capital earlier this week. American lawmakers have yet to cut a deal to raise Washington’s mammoth $16.7 trillion borrowing limit, the ‘debt ceiling, ‘which is set to expire on October 17. The stand-off forced the closure of much of the U.S. government and prompted President Obama to cancel his planned visits to Brunei, Indonesia, Malaysia and the Philippines. And while the government shutdown has prompted worldwide bemusement, the looming debt crisis has left Asia’s emerging economies nervous about the unheralded knock-on effects that could come about – if the U.S. ends up defaulting on its debt. Around 60% of China’s foreign currency reserves are thought to be American assets, so Prime Minister Li Keqiang’s words to U.S. Secretary of State John Kerry – that “China is highly concerned with the United States’ debt ceiling issue,” according to a report in by the state-run China News Service – are no surprise.