Paying the bills: While its great rival China sits atop a mountain of cash, America sits on a mountain of debt. Photo: REUTERSChina Blasts US 'Debt Addiction' And Calls For New Global Stable Reserve Currency -- The Telegraph
China has condemned the United States for its "debt addiction" and called for a new global stable reserve currency after Standard & Poor's cut its credit rating.
In a harshly-worded commentary by the official Xinhua news agency, China gave its first official comments on the United States losing its gilded AAA long-term credit rating.
"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.
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Update: Top creditor China delivers unexpected fiscal demands to U.S. after historic credit downgrade -- L.A. Times
My Comment: The Chinese are not the only ones voicing this opinion .... some of America's closest allies are now starting to accept this position. More support for a change in the US as the world's reserve currency is now coming from the banks.
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