1. Response

    China: U.S. Should 'Live Within Its Means'

    42-2810849201 Apr 2011, Bejing, China, China --- The Chinese national flag sways in the wind in front of an office highrise in Bejing, China, 1 April 2011. Photo: Arno Burgi --- Image by © Arno Burgi/dpa/Corbis

    Arno Burgi, DPA / Corbis

    China, the largest foreign holder of U.S. federal debt, took to its official news outlet to criticize the United State's financial management following the S&P downgrade. The U.S. needs to “cure its addiction to debts,” said a commentary in the New China News Agency. It also called for “substantial” cuts to the “gigantic military expenditure and bloated social welfare costs” in order to prevent future downgrade. “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," the commentary said.

    Read it at Los Angeles Times