Barron’s (August 8)
2011/ 08/ 10 by jd in Global News
S&P diverted attention from the real problems facing the global economy. The U.S. debt “is perhaps the least of the clear-and-present problems besetting the world’s economy.” Bigger problems include the soft U.S. economy, the European debt crisis and a growing bubble in China linked to local debt, “which at $1.7 trillion equals 27% of that nation’s 2010 gross domestic product.” As for the U.S. downgrade, “the U.S. government may be the world’s largest debtor, but its liabilities still are the safest assets in the world.”
Tags: Chinese debt, Europe, Global economy, S&P downgrade, U.S. debt
