By calling the outlook "negative," S&P signalled another downgrade is possible in the next 12 to 18 months.
Worries that the United States was slipping into recession and the euro zone debt crisis was spreading drove a week-long rout in which $2.5 trillion was wiped off global markets.
Better-than-expected U.S. jobs growth in July helped support Wall Street on Friday but stocks slipped back into the red in late trading.
China roundly condemned the United States for its "debt addiction" and "short sighted" political wrangling and said the world needed a new stable global reserve currency.
"China, the largest creditor of the world's sole superpower, has every right now to demand the United States address its structural debt problems and ensure the safety of China's dollar assets," the Xinhua commentary said.
It urged the United States to cut military and social welfare expenditure. It also said further credit downgrades would very likely undermine the world economic recovery and trigger new rounds of financial turmoil.
"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 said.
via www.newsmax.com
Now tell me, does the excessive debt incurred over the past two decades still appear to be a GOOD thing? Can we spend out way of of this crisis? To think that we can is counter-intuitive at best. Why can't the best minds in america figure this out? They can.
