Monday, August 08, 2011

As Sun Tzu said...

..."The Supreme Art of war is to subdue your enemy without fighting".

BEIJING, Aug 8 (Reuters) - Chinese state media on Monday blamed Washington's huge military spending and global footprint for the crisis that led to the U.S. debt rating downgrade, calling for an end to the foreign "domineering" dragging down its economy.

Sharpening their rhetoric over the economic crisis that has sent markets into a tailspin, the Chinese state-run media lambasted both Europe and the United States for the dysfunctions of their democracies and their unsustainable appetite for spending.
The Xinhua news agency also warned the United States against trying to boost exports and growth by letting the dollar weaken, which would have a dramatic impact on China as about 70 percent of its massive reserves stockpile is invested in dollar assets.
One analyst, Yuan Peng, said the unusually blunt attack on the West probably reflected concern among Chinese leaders, facing pressure from popular opinion and the media, to deflect blame for any negative fall-out of the crisis on the country's holdings of U.S. assets.

"Since the collapse of the Soviet Union, the United States, as the world's sole superpower, has relied on its powerful military to meddle everywhere in international affairs, advancing hegemony, and paying no heed to whether the economy can support this," said a commentary issued by China's Xinhua news agency, which noted the heavy bills for America's wars in Iraq and Afghanistan.

"Now is the right time for the United States, trapped in economic hardship, to reflect on its domineering thinking and deeds," said Xinhua, urging Washington to "change its policies of interference abroad".

China is spending heavily on its 2.3-million-strong armed forces, returning to a double-digit increase this year. That has stirred unease among its neighbours and the United States, which has long had a presence in the Asia-Pacific region.
At about $93.5 billion for 2011, China's defence budget is still dwarfed by that of the United States. In February the Pentagon rolled out a record base budget for fiscal year 2012 of $553 billion, though the Obama administration is now looking to trim military spending.

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