The US must stop living beyond its means, says China
China vociferously warned earlier this week that the US must stop being a ‘debt addict’, in a show that America’s biggest creditor did not take the S&P downgrade on the light side. It might even be considering rebalancing its foreign exchange reserves so as to rely less on Dollars, as this week’s unprecedented appreciation of the Renmibi, a sign that China has slowed down its accumulation of American currency, would lead to think. Yet China’s fiscal position is not as good as it claims it to be. A growing amount of debt is stacking up in the regions - out of the government official books.