China: The 'good old days' of borrowing for US are over

This is hardly "inscrutable" from the usually opaque Chinese. It is a direct, straight from the shoulder overhand right to the jaw and warns of future miseries for the US economy. Reuters: 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...(Read Full Post)