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China, the USA's biggest debt holder...with an estimated $1.1 trillion...blasted the USA after its credit rating was downgraded by S/P...for the first time in USA history...claiming the "good old days" of borrowing are over.
China lambasted the USA for its "debt addiction" and "short sighted" political wrangling.
"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," it said.
Of the 3 major ratings agencies...only S/P has so far downgraded the USA...mainly for its political gridlock.
Neighboring Canada and close allies France, the UK, Australia and, of course, Germany now all have better S/P ratings than the USA.
AND: Italian PM Berlusconi ruled out early elections after Italy's bond rates spiked to historic 14 year levels and forced him to promise faster implementation of austerity measures.
http://www.reuters.com/article/2011/08/06/italy-crisis-idUSLDE77505N20110806
