Latest News:  
Beijing   Foggy/Cloudy    20 / 11   City Forecast

Home>>Foreign Affairs

Measured action needed to address US debt issue

By Shen Dingli (Global Times)

10:16, October 20, 2011

The US national debt is precariously high, at around the same level as the country's annual GDP.

This situation is of great concern to China, as the two countries are heavily involved in bilateral trade.

However, I would argue that the US debt problem is not so severe as the media makes out, although China could still act to reduce the risk of a future calamity caused by the economic interdependency of the two countries.

Given the continuing imbalance of the US federal budget, America runs the risk of failing to pay its debts on time, and has needed to borrow to meet the obligations of its existing debt. This threat of snowballing debt, unbalanced budgeting and congressional partisan rivalry have resulted in the country's credit rating being downgraded by Standard & Poor's.

Presently, America is experiencing one of its hardest times in history. The previous Republican administration initiated an unwarranted war in Iraq, plus another expensive undertaking in Afghanistan, costing several trillions of dollars.

However, there is still hope that the US can turn around its situation.

First, US national wealth has been increasing over the past 10 years, and its GDP rose by nearly 50 percent, despite waging two wars thousands of miles away from home. One should never underestimate the US capacity to generate wealth.

【1】 【2】


Leave your comment0 comments

  1. Name


Selections for you

  1. College arts on exhibition in east China

  2. Specimen of legendary elephant in Taipei

  3. Three Gorges Dam water level reaches 174.18m

  4. Violence greets new Greek efforts to cut public spending

Most Popular


  1. Chinese culture of peace promotes development
  2. Red flags raised as Japan mulls repeal of arms ban
  3. Job death shows Americans' love of big business
  4. Wall Street leads the West to a world of chaos
  5. Are China's forex reserves too big?
  6. Signs of higher mortgage rates
  7. Taobao Mall suffers from growing pains
  8. Is investing in forex cost effective?
  9. China needs cultural power
  10. Small vendors' wrath

What's happening in China

Themed restaurants attract many curious customers

  1. Farmer sold as slave to factory 'over complaint'
  2. School in NW China halts use of green kerchiefs
  3. Overuse of antibiotics concerns officials
  4. Survey shows people lack trust in each other
  5. Future bright for problem solvers in Party

PD Online Data

  1. Flying a paper crane
  2. Eating Double Ninth Cake
  3. Climbing Mountains
  4. Wearing Dogwood
  5. Drinking Chrysanthemum Flower Wine