LA Times: China demands U.S. 'live within its means'

Los Angeles Times ^ | August 6, 2011 | By David Pierson

[Oldeconomybuyer]

The largest foreign holder of U.S. treasuries responds to the S&P downgrading by calling for decreases in U.S. military outlays and social spending.

Beijing — China called on the United States to "cure its addiction to debts" and "learn to live within its means" in a searing commentary published Saturday by the official New China News Agency in response to Standard & Poor's historic downgrading of the U.S. government's credit rating a day earlier.

China, the largest foreign holder of U.S. federal debt, blamed "short-sighted political wrangling in Washington" for creating the current financial morass that now threatens to undermine the global economy.

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

"If no substantial cuts were made to the U.S. gigantic military expenditure and bloated social welfare costs, the downgrade would prove to be only a prelude to more devastating credit rating cuts, which will further roil the global financial markets all along the way," it continued.

[proud American in Canada]

“This is not just a “sad day”, it’s a catastrophe — China is dictating to the US and we comply.

We better all start to learn Chinese...”

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That is what concerns me. People can’t continue to purchase their goods if they can’t put food on the table, so I don’t think that argument holds water.

And of course they want us to cut military spending.

This is a major disaster.

[proud American in Canada]

I like your optimistic viewpoint. :) I hope to share it at some point.

Of course, at this point, living in Canada, one sticking point for many Canadians is the U.S.’s thirst for water, of which Canada has plenty.

I wish I had more knowledge to impart, but from reading the news & listening to the radio, I know that leftists up here are predicting a “water war” at some point down the line.

[panaxanax]

Good idea!

Something has to be done.....and quick.

[Wiggins]

"Dock those chinks a days pay for napping on the job".

[ponder life]

hmmmm....I hadn't ever heard of a water war between the US and Canada. But water does rise up as a source of contention from time to time in history. I hope it isn't anything serious. If it is, one answer would be for the US and Canada to work together for water diverison projects.

There's plenty of fresh water in N. America to supply all our needs. I'm not a geologist, but I'm willing to bet Canada could provide N. America with all our water needs down to Central America. Where people fight over water, are the waters with easy access, and those are limited in supply. Exploiting fresh water requires huge infrastructure projects that divert the water to where they are needed. I suppose that's why farms are near water tables that have easy access to water.