Source: Yahoo News
“I think the most pressing issue facing the U.S. at the moment is to reflect on the crisis which happened in relation with the debt ceiling,” Guan said. “They should get a clear understanding that the continuous decline of the debt service capability will inevitably result in the outbreak of a sovereign debt crisis.”
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Changing The Engine Of The Global Economy – The Next UN Strategy
Standard & Poor’s US debt downgrade was a wake-up call for the world, a commentary in a top Chinese state newspaper said, adding that Asian exporters faced special risks.
Citing economist Sun Lijian, the People’s Daily on Sunday said Standard & Poor’s Friday cut to the US’ credit rating from the top notch triple-A to AA+ had “sounded the alarm bell for the dollar-denominated global monetary system”.
The comments carried in the Communist Party mouthpiece follow a stinging attack launched by the official Xinhua news agency on Saturday, which said Beijing had “every right” to demand Washington safeguard Chinese dollar assets.
China – which sat on the world’s biggest foreign exchange reserves of around $3.20 trillion as of the end of June — is the largest foreign holder of US Treasuries. (more…)