Chinese Premier Wen Calls on U.S. to Offer Fiscal Guarantees

From Politicalcortex.com

BEIJING CONCERNED OVER SAFETY OF DEBT HOLDINGS

In a front page article by Geoff Dyer in Beijing and Alan Beattie in Washington, it was reported:

"Premier Wen Jiabao yesterday urged the U.S. to take measures to guarantee its `good credit,' expressing concern about the `safety' of his country's huge holdings of U.S. government debt.

"Mr. Wen's shot at the U.S.'s deteriorating fiscal position -- on the evening of this weekend's G20 finance ministers -- was paired with a promise to increase China's public spending this year to boost its economy if needed.

"The Chinese government is the largest holder of U.S. public debt and Chinese officials have shown increasing signs of concern that the sharp increase in U.S. government spending. About 70 percent of China's near $2,000 bn foreign exchange reserves are believed to be in U.S. dollar assets.

"'We have lent a huge amount of money to the United States,' Mr. Wen told the annual press conference that marks the close of the National People's Congress, China's parliament."

How on earth did the U.S.A., which for years was internationally recognized as an industrial giant and a rich nation, descend to the level of a kept nation -- borrowing billions to salvage its former economic stature?