China Warns US: Good Old Days of Borrowing Are Over
China criticized the US today after the S&P downgrade saying the good old days of borrowing are over. The the largest foreign holder of United States debt said the US had to “cure its addiction to debt.”
It’s not likely.
Barack Obama and Democrats added over One Trillion Dollars to the annual federal budget in the last 3 years alone.
That’s at least a 30% increase in federal spending in just 3 years. And, democrats have no intention cutting spending.
China bluntly criticized the United States after the S&P ratings cut to AA-plus, saying Washington had only itself to blame and calling for a new stable global reserve currency.
“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.
After a week which saw $2.5 trillion wiped off global markets, the S&P move deepened fears of an impending recession in the United States as euro zone countries struggle with a debt crisis of their own.
S&P blamed the downgrade in part on gridlock in Washington, saying politics was preventing steps to address the debt and deficit problems. Amid a vitriolic fight between Democrats and Republicans, U.S. lawmakers reached a last-minute debt deal last week to avoid an unprecedented default by the government.
President Barack Obama urged lawmakers to set aside partisan politics, saying they must work to put the nation’s fiscal house in order and stimulate the stagnant economy. He called on Congress to give tax relief to the middle class, extend jobless benefits and pass long-delayed trade pacts.