From Yahoo News: CHINA: "America Needs To Accept The Painful Fact That The Good Old Days Are Over"On Saturday Augu, st 6, 2011, 6:42 am EDT
China's official comment on the S&P downgrade was harsh and condescending. Released through Xinhua (via Reuters) the statement condemned America for its "debt addiction" and "short-sighted" political wrangling.
"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 wrote.
America's largest creditor, China said it will accelerate diversification away from US treasuries, and that meanwhile it demands reform: "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," Xinhua said.
The statement also called for a new global currency: "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.
As predicted at the beginning of the year, it seems more and more likely that the dollar will go the way of the Dodo bird in 2011, things are moving that fast! The following quote is from my last past of 2010, titled 2011 Predictions; it seems that we are witnessing this prediction become reality. The video below speculates on the consequences of the Dollar Collapse but I believe the reality will far more horrific.
From 2011 Predictions: The complete collapse of the World Economy will most likely be signaled by the collapse of the US dollar. As countries worldwide, led by China, begin to dump the US dollar, it will lead to financial anarchy. For the first time in history the world will be without a reserve currency; for most of man’s commercial history, gold has served as an international currency, and silver as a national currency. Only since 1944 did the US dollar become the world’s reserve currency, and only since 1971 has the reserve currency been without any precious metal backing it whatsoever. This is what has led to the Supernova of debt now blowing up all over the world. This situation could only be made possible with a purely ‘fiat’ reserve currency, not with gold or silver based money.
As economies worldwide continue to implode, expect the following to happen in 2011.
• #1 PREDICTION FOR THE WORLD IN 2011: ECONOMIC SABOTAGE TO ESCALATE
I must say that even I am a bit surprised to see how quickly this SABOTAGE by the banking elites of the world is starting to move in the last couple of weeks; however now it would not surprise me if the total meltdown of the Global Economy happens by the end of October of this year.