China demands U.S. ‘live within its means’
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.
« If no substantial cuts were made to the U.S. gigantic military expenditure and bloated social welfare costs, the downgrade would prove to be only a prelude to more devastating credit rating cuts, which will further roil the global financial markets all along the way, » it continued.