China rips U.S. on debt-rating downgrade - by Kate Gibson

China used Standard & Poor’s decision to downgrade the U.S. credit rating to issue a sharply-worded rebuke of the U.S. government on Saturday, saying Washington can no longer borrow its way out of trouble.

The White House on Saturday responded to the downgrade by urging political factions to join forces to repair the U.S. economy and put the country’s fiscal house in order.

China used Standard & Poor’s decision to downgrade the U.S. credit rating to issue a sharply-worded rebuke of the U.S. government on Saturday, saying Washington can no longer borrow its way out of trouble. 

The White House on Saturday responded to the downgrade by urging political factions to join forces to repair the U.S. economy and put the country’s fiscal house in order. 

“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. 

Note EU-Digest:  China's concern should have been expressed rather sooner than later. To put it in more simplistic terms. Every dollar China borrowed to the US is now worth about 65 cents and probably will go even lower. On the other hand China is benefiting from all the free HI-TECH it was able to acquire by "whatever means at their disposal" from the US and the West without investing in years of research.

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