China blasts US over debt problems

2011-08-06 11:15

Beijing - China roundly condemned the United States for its "debt addiction" and "short sighted" political wrangling and said the world needed a new stable global reserve currency.

In a harshly-worded commentary by the official Xinhua news agency on Saturday, China gave its first official comments on the United States losing its gilded AAA long-term credit rating from Standard & Poor's.

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

China also urged the United States to apply "common sense" to "cure its addiction to debts" by cutting military and social welfare expenditure.

"The US government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone," Xinhua wrote.

China also said further credit downgrades would very likely undermine the world economic recovery and trigger fresh rounds of financial turmoil.

"International supervision over the issue of US dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country," Xinhua said.

Chinese economists said the US credit rating downgrade posed a great risk to financial markets and they expected it to prompt China, the world's biggest holder of US Treasuries, to accelerate the diversification of its holdings.

S&P cut the United States' rating to AA-plus on concerns over the government's budget deficits and rising debt burden. The move is likely to raise borrowing costs eventually for the US government, companies and consumers.

Earlier this week, the United States narrowly avoided a default after lawmakers from across the political divide came together to hammer out a deal that would raise the country's borrowing authority after weeks of rancorous partisan battles.

  • Gorilla - 2011-08-06 11:29

    Lovely. China get the boot into the US. Gotta love how the wheel turns.

      john - 2011-08-06 14:53

      I'm sure we're all looking forward to the global leadership and moral guardianship of a nation that committed genocide on up to 150 million of its own people, is not a democracy, couldn't feed its own people under its preferred political system and only achieved wealthy by copying the West.

      ihatum - 2011-08-08 07:57

      @John - which world superpower has not committed atrocities?. At least china does not take the moral high ground like others.

  • grant9 - 2011-08-06 11:34

    Troubled times ahead?

      Real Deal - 2011-08-06 12:07

      Yes. Expect a war very soon with Iran. US power house days are numbered so they will need to act fast. Hello Russia and China to the world super power table as described in the chapters of the bible. It amazing its accurcy. Even speaks about Lybia and the change with northern African countires. We the generation to witness the end of an age

      daaidoos - 2011-08-06 12:26

      @realdeal that's bullcrap in a bucket

      Jack - 2011-08-06 13:56

      Real deal . Interesting point, all part of the birth pangs mentioned in Matthew 24v 4-8.

      slg - 2011-08-06 14:09

      The US economy is three times the size of the Chinese. The country is also a democracy, unlike China. Democracies have far greater ability to navigate troubled waters than centralized governments. A war with the rogue Iranian regime would have nothing to do with the US debt, and everything to do with ridding the world of another group of terrorist thugs running a country.

      Onnest - 2011-08-06 14:32

      I think this whole crisis is pre orchestrated. Countries don't exist in a Global Economy the way the existed in colonial times and before then. Corporations, not governments run the world. And corporations operate across borders. Why would America purposely drag this out till the end while the media hypes it up? Why would America keep spending money on fruitless wars? This is an excuse for the IMF to implement a Global currency that is not attached directly to any nation, and move the world closer to a new world order. It was obvious that the economy as we know it is not sustainable. We can't keep consuming, just to keep people employed. And that is the basis of the economy, we consume, and that keeps everything ticking on. China can export, America can keep printing dollars, and the financial centers can keep manipulating the system so that we all feel we can buy more, and are therefore progressing in life. So now we are enslaved to the banks (which are the corporations that run the world).

      slg - 2011-08-06 15:42

      Onnest, you really are under major delusions. You see the US as this big bad entity, while supporting brutal dictatorships. The mind boggles.

      Onnest - 2011-08-06 18:12

      Whatever, you know everything slg. Your truth is that America is one big charity who wants to save the world from evil dictators. You keep believing that. Keep making debt, watching CNN, and posting that the world's leaders are evil tyrants, and America is coming to the rescue. Your are not open to anything else so i wont try to convince you.

      slg - 2011-08-06 18:56

      I don't know everything. Your message is a silly misrepresentation of my beliefs.

      Real Deal - 2011-08-07 02:55

      slg - *yawn*

  • Peter - 2011-08-06 11:34

    Thanks largely to silly Americans and their (Mad as Hatters) Tea Party situation likely to deteriorate further. China showing a lot more maturity.

      Eric West - 2011-08-06 11:52

      Nonsense! How is that "Hope!" and "Change!" working out for you, Obama, you one trick pony?

      Brent - 2011-08-06 12:17

      those crazy tea party people has been screaming 'fiscal responsibility to to both the dems and reps for a while now but as usual conservative views are rubbished regardless if it makes sense. The sad thing for me personally is that the big O, which i very much liked, turned out to be weak and indicisive.

      slg - 2011-08-06 14:12

      Peter, try living there then, under it's controlling government, especially in Tibet where monks are being beaten up for wanting self-determination. Mao Tse Tung and Communism aren't that far away in terms of time.

      Met - 2011-08-06 16:04

      I am stunned by the ignorance

      Dominic - 2011-08-06 18:43

      China is right. Too much unproductive spending. $1000000 cruise missile to destroy a $50000 building just isn't value for money. US and European social welfare spending rewards those who don't contribute and penalises those who do. I've been to China and and am currently in South Eastern Asia. The people here are noticeably happier than their Occidental counterparts.

  • John - 2011-08-06 11:41

    Who would have thought that the Chinese could be so arrogant?

      Brent - 2011-08-06 12:19

      China invested heavily in the USA- i'd be pissed off as well and piss on them instead.

      slg - 2011-08-06 14:28

      Brent, the US is driving the growth in China with it's imports. China is afraid that these imports will reduce substantially further. China also holds tens of billions of dollars in US Treasuries. A downgrading affects CHina's financial position.

  • Nico - 2011-08-06 11:46

    It's not being arrogant!! How would you feel if somebody is taking your money? I can already feel the drop in value regarding my shares. USA should stop giving , they are NOT father Xmas anymore anyway.

      John - 2011-08-06 12:01

      They are being arrogant.

      Howzitekse - 2011-08-06 14:58

      John, I take it being arrogant is exclusively the right of the Brits and Yanks?

  • Beam me up - 2011-08-06 11:55

    Don't be fooled, China are playing their cards. The 20, 50 and 100 year plans are in motion. China wants to be the worlds top superpower. They want the RMB to be the worlds trading currency.

      LBS - 2011-08-06 12:02

      And they are infiltrating all the countries, look at S A nowadays.... On the positive side, I think they will be better in Government than what we have right now!

  • daaidoos - 2011-08-06 12:12

    Here's a proverb for the Chinese. Don't throw stones when you live in a glass house! Do something about 1) Unfair labour practises and downright woker exploitation 2) Stop control over people's religions and lives 3) Stop artificialy deflating your Yuan to get an unfair export advantage 4) Stop exporting Western knockoffs of an inferior quality

      fred.reinhardt - 2011-08-06 12:44

      America needs to get back to work! 40 million don't pay taxes- 13 million illeagals. Obama and the Congress need to be fired and start again. Audit the national debt each 3 months. And I totally agree the Chinese are subject to all 4 counts you mentioned.

      John - 2011-08-06 13:37

      @daaidoos . . Excellent points.

      slg - 2011-08-06 14:29

      Fed, your first sentence is inaccurate. The US is by far the most productive country on Earth.

      slg - 2011-08-06 14:31

      daaidoos, thinking about the undervalued Juan, I'm thinking this is a country's right. Many countries have grown their economies this way. I'm not sure it's unfair.

      vis vang - 2011-08-06 16:39

      @slg, why pick on Juan (sic) and leave Julio out of it? Lol, the word you were looking for is Yuan mate.

      slg - 2011-08-06 17:11

      vis, :) :)

      Thinus - 2011-08-06 21:22

      slg , Consider checking out

      Thinus - 2011-08-06 21:30

      slg, the mighty USA's economy is 78% services. The goods part slowly but surely started disappeared rapidly since the Reagan era. This fact should be ample proof that they, as so many other western countries, including SA imports inflation, impacting directly to the current 25% unemployment in SA as example.

      slg - 2011-08-07 07:16

      The GNP of the US is nine times more than China's, and it produces this with one-third as many people. That's the productivity of the US in a nutshell.

      slg - 2011-08-07 07:24

      Thinus, I hear what you're saying. The flip-side is China is battling to add intellectual value-added to its economic productivity. It seems the US and China balance each other well in this arena.

  • Beam me up - 2011-08-06 12:44

    There is a huge divide between the rich and poor in China. There is a silent revolution on in China. The poor are getting angry at seeing their masters becoming wealthy off their backs. The World will eventually start buying less from China. Once the economy turns in China and it will, the revolution will come to light.

  • paypalawsuit - 2011-08-06 12:48

    usa is loosing one war in their back yard. idiots they should take all their soldiers home and let other countries alone at the same time they will save trillions

      slg - 2011-08-06 14:32

      It's idiotic to label any country as idiots.

  • iam.phonica - 2011-08-06 12:58

    I love how people blame Obama (The problem-solver) Did Obama have anything to do with two World Wars, Vietnam, the "War on Terror"? The most learned economist and historian will tell you that the USA was digging its own grave, using debt as the shovel. The ball is now in China's court they have a large influence on how the market reacts towards the US since they own a large amount of US assets.

  • Popit - 2011-08-06 13:15

    All of you have a lot to say, and taking pleasure in the US's problems. Don't forget that this will also have an impact on the small SA economy.

  • Bart Zimzon - 2011-08-06 13:32

    a TV in each room, even aircon in their toilets....don't want to work with their hands, they need mexicans for that....and so on. You can't expect that to go on like that forever, do you...unless you are american.....

      john - 2011-08-06 15:16

      White South Africans owning most of the mineral wealth, most of the productive farmland, 73% of top corporate jobs. Whites owning multiple houses while most blacks don't own one house. You don't expect that to go on forever, do you? Unless you are a white South African. Funny how Americans are urged to give up luxuries they take for granted, but South Africans whine like stuck pigs when put in the same position. Why is that?

  • Trevor - 2011-08-06 14:15

    GREAT NEWS for us along with other 3rd world countries....China rather investing in countries that have a future...USA has now finally outlived it's WW2 benefits...they better wake up before they end up like the UK,living in the past blindly while the world moves on.

      john - 2011-08-06 15:20

      Even ANC cabinet ministers are smart enough to figure out that China is only investing for its own ends. Do you think Africans will be any better off when owned by China than they were when owned by Europe?

  • slg - 2011-08-06 14:22

    In addition to the US economy being three times the size of China's, it is produced by one-qarter the number of people. The US is the most productive country in the world by far. This just goes to show how uninformed, arrogant and bigoted some people are, from their little comments.

      cerveza - 2011-08-06 20:22

      @slg - please tell me how much money is being made in building an iPad in China, compared to how much is being made in the USA to sell it anywhere in the world. The US is making money by abusing the labour in the rest of the world since they are not allowed to have slaves anymore not by being productive, so stop being so arrogant and bigoted and read all the little comments, maybe you learn something... like did you know that during the 19th century the UK government gained more money from taxes payed by Indians in India, than from taxes from the local UK economy

      slg - 2011-08-07 07:20

      There are very strong laws in the US against their companies abusing labour in other countries, and very strong public opinion about it. Companies don't dare do it. The stakes are too high.

  • Mr B - 2011-08-06 16:28

    @ Real deal. The bible is so fulll of errors yet you still believe it. It says Jesus was from Nazereth, yet Nazereth was only around 350 years after the death of Jesus. Go look it up if you dont believe me. I can give you an accurate prediction write now. You will be dead and Jesus will still not have arrived from the clouds.

      vis vang - 2011-08-06 16:36

      Best comment I read all day!

      John - 2011-08-06 18:05

      Actually the idea that Jesus came from Nazareth is because of a mis-translation of the Old Testament by the writers of Matthew. The words Iesou Nazarene (Nazareneus) refer to the fact that Jesus was a Nazarene (or Nazarean), not to the fact that he came from Nazareth. Your comment is also has errors . . it's not "write now". It should be "right now." Worry about your own errors instead of spreading wrong information about the Bible.

      william.botha - 2011-08-06 19:29

      John, do you believe in father Christmas as well?

      John - 2011-08-06 20:59


      Thinus - 2011-08-06 21:37

      mr b, Regardless , Jesus still loves you!

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