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Saturday, August 6, 2011

China calls for One World Currency, to avoid international financial crisis over U.S.debt, credit rating


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China's governmental news agency
Xinhua News, has called for a One
World Currency, one day after
U.S. Credit Rating was downgraded
by S&P from AAA+ to AA+.
For America, the days of depending on China’s Yuan to support United States debt could be all but over; after Standard’s and Poor downgrade of U.S. Treasuries rating from AAA+ to AA+.

The loss of top-tier AAA status by the world's economic superpower drew fierce criticism from China, a huge holder of U.S. debt, and promised more anxiety for global financial markets.

“Weak consumer demand leads to a slowdown in economic growth. And the only way the Americans have come up with to improve economic growth has been to take on new loans to repay the old ones. "To eat May's grain in April," however, will never be a permanent solution to a problem,” Xinhua News wrote.

China bluntly criticized the United States after the S&P ratings cut to AA-plus, saying Washington had only itself to blame. Calls for a new stable global reserve currency, or in other words, a one-world currency lead China's ideas on how to properly deal internationally, with the U.S. debt.
"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. 
"International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country," Xinhua cited.
Its’ expected the statement by Xinhua News will have a dramatic impact on Wall Street Markets on Monday morning, the first day of trading after the S&P downgrade. China’s call for a one world currency was underscored by harsher indictments of United States policy making insight to properly deal with the nations’ over $14 trillion dollars’ worth of debt.

Xinhua scorned the United States for a debt addiction and decades of short slightness politically, with dealing with this country financial problem.
“The U.S. government has relied on borrowing to fund its operations in recent decades and has seldom carried out a serious fiscal austerity plan. That's why its debt ceiling has been raised 78 times to 14.29 trillion dollars since 1960,” China’s governmental news agency noted.
China’s news service cited without strong economic growth and job creation, it would be difficult for the United States to generate robust revenue increases and improve its fiscal condition over the long run.

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