China tells U.S. "good old days" of borrowing are over

08-06-2011 • finance.yahoo.com

China bluntly criticized the United States on Saturday one day after the superpower's credit rating was downgraded, saying the "good old days" of borrowing were over. Standard & Poor's cut the U.S. long-term credit rating from top-tier AAA by a notch to AA-plus on Friday over concerns about the nation's budget deficits and climbing debt burden. China -- the United States' biggest creditor -- said Washington only had itself to blame for its plight and called 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 move deepened investors' concerns of an impending recession in the United States and over the euro zone crisis. Finance ministers and central bankers of the Group of Seven major industrialized nations will confer by telephone later on Saturday or on Sunday, a senior European diplomatic source said. The source said the credit rating downgrade had added a global dimension on top of the euro zone debt issue, raising the need for international coordination. "The G7 will confer by telephone. It's not yet confirmed whether it will be in one stage or in two stages, tonight and tomorrow," the source said.

1 Comments in Response to China tells U.S. "good old days" of borrowing are over

Comment by David Jackson

Entered on: 8/9/2011 12:17:43 PM

Let's tell China to KMA!

Since they've been able to sell their crap on the American market, to the detriment of all U.S. citizeens and the U.S. economy, maybe it's time they sold to Italy, Spain, or Greece.

Maybe, if their easy ride comes to a halt they'll go back to slaughtering their own people and slow down their conspicuous consumption of the world's natural resources. I'd tell you what I really think, but this might be viewed by what used to be considered polite company.

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