06 Aug '11, 6am

China has right to demand US address debt problem: Xinhua

China has right to demand US address debt problem: Xinhua

BEIJING: China "has every right" to demand the United States address its debt problem following its downgrade by Standard and Poor's, the official Xinhua news agency said on Saturday. Standard & Poor's has cut the US rating a notch from the top flight triple-A to AA+, saying its politicians were becoming less able to get to grips with the country's huge fiscal deficit and debt load. In a stinging commentary, Xinhua said Washington needed 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". S&P gave a negative outlook for the US, saying there was a chance its rating could be cut again within two years if progress is not made cutting the government budget gap. Xinhua said that unless Washington made substantial cuts to what it called the "US gigantic military expenditure and bloate...

Full article: http://www.channelnewsasia.com/stories/afp_asiapacific_bu...

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