When the US lost its AAA Credit Rating, China slapped their lap dog in the face and told Obama,
the “good old days” of borrowing are over.
“The U.S. 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,” China’s official Xinhua news agency said in a commentary.
China, america’s largest creditor feels Washington has only itself to blame for its plight and renewed calls for a new global reserve currency.
After a week that saw $2.5 trillion dollars evaporate in global markets, international investors are having deep concerns about an impending recession. The profligate policies of the US and the Euro Zone are adding to the building crisis and neither the us or The EU are willing to cut spending to stop the ever increasing pressures adding to the crisis.
The credit rating downgrade is thought to adversely affect a global dimension, the Euro crisis is only adding fuel to the fire with no relief valve in place.
The political positioning and posturing is seen as pathetic moves to secure political futures in the US rather than addressing the immediate problems. China sighted military and social welfare expenditures as the source of the US “debt addiction”.
“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,”
It urged the United States to cut military and social welfare expenditure. Further credit downgrades would very likely undermine the world economic recovery and trigger new rounds of financial turmoil.
“International supervision over the issue of U.S. 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.
We should be prepared for international supervision of our debt. China owns us and they don’t want to lose their investments. Our president will be more than willing to hand over the reins of power, there are rockstars to entertain and barbecues to host. It is called priorities, Obama has an election to think about.