"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 state-run Xinhua News Agency said
Saturday, in Beijing’s first official response to the S&P action,
according to wire service reports.
"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,” it said.
Xinhua said the U.S. must slash its "gigantic military expenditure and
bloated social welfare costs” and accept international supervision over
U.S. dollar issues.
In cutting its rating of long-term U.S. government debt to AA+, a level
below its top-ranked AAA, for the first time, S&P late Friday
pointed to the "gulf between the political parties”
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