R i g h t a r d i a: DI: The facts and the delusions of Americans

Saturday, August 6, 2011

DI: The facts and the delusions of Americans

by Erich Vieth | August 6, 2011

Here’s what China says about the United States:

“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,” Xinhua said.

It said the rating cut would be followed by more “devastating credit rating cuts” and global financial turbulence if the U.S. fails to learn to “live within its means.”

“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.

Here’s what United States Officials say:

Officials at the Treasury Department fought the downgrade until virtually the last minute. Administration sources familiar with discussions said the S&P analysis was fundamentally flawed. They spoke on condition of anonymity because they weren’t authorized to discuss the matter publicly.

Here is a stunning fact, but by no means newly revealed information: The federal government is borrowing about 40 percent of what it spends.

If some other country were ruining its economy like this, we would scold them, much like China is now scolding us.

It is interesting that a communist nation would provide such a stinging rebuke to the US. Of course, the Chinese have been living within their means.