Stig Östlund

lördag, augusti 06, 2011

China demands U.S. 'live within its means'

The largest foreign holder of U.S. treasuries responds to the S&P downgrading by calling for decreases in U.S. military outlays and social spending.


A Chinese investor reacts as world markets tumble at a brokerage house in Fuyang in central China's Anhui province. (Associated Press / August 5, 2011)

Reporting from Beijing— China called on the United States to "cure its addiction to debts" and "learn to live within its means" in a searing commentary published Saturday by the official New China News Agency in response to Standard & Poor's historic downgrading of the U.S. government's credit rating a day earlier.

China, the largest foreign holder of U.S. federal debt, blamed "short-sighted political wrangling in Washington" for creating the current financial morass that now threatens to undermine the global economy.

"China, the largest creditor of the world's sole superpower, has every right now to demand the United States to address its structural debt problems and ensure the safety of China's dollar assets," the commentary said.

LOS ANGELES TIMES

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