Archive for July, 2011

Chinese Media Slams U.S. Debt Crisis

NEW YORK (TheStreet) — A mouthpiece for the Chinese government has published a scathing attack Thursday on the U.S. over its failure to raise the national debt ceiling just days ahead of the Aug. 2 deadline, describing Washington’s politics as “dangerously irresponsible.” China is the largest holder of U.S. Treasuries.

Published by the official state news wire, Xinhua, the commentary said countries across the world had been “kidnapped by U.S. domestic politics,” and warned that a U.S. default could push the world economy into a “much nastier” recession than the one brought on by the financial crisis.

“The ugliest part of the saga is that the well-being of many other countries is also in the impact zone when the donkey and the elephant fight,” wrote Xinhua journalist Deng Yushan, who also criticized the U.S. for its over-reliance on debt. “It is time for Washington to revisit the time-tested common sense that one should live within one’s means,” Deng added.

The Fed has said $900 billion in maturities and interest payments will fall due in August, although reports yesterday suggested a contingency plan to pay bond holders ahead of meeting other federal financial obligations had been agreed between Democrats and Republicans.

Read the full article here.

Ex-Cameron aide arrested in UK hacking scandal

Prime Minister David Cameron’s former communications chief and an ex-royal reporter were arrested Friday in a phone hacking and police corruption scandal that has already toppled a major tabloid and rattled the cozy relationship between British politicians and the powerful Murdoch media empire.

The 168-year-old muckraking tabloid News of the World was shut down Thursday after being engulfed by allegations its journalists paid police for information and hacked into the phone messages of celebrities, young murder victims and even the grieving families of dead soldiers. Its last publication day is Sunday.

The hacking revelations horrified both ordinary Britons and advertisers, who pulled their ads en masse. News International, the British arm of Rupert Murdoch’s News Corp, killed the paper in hopes that a 12-billion pound ($19 billion) deal to takeover satellite broadcaster British Sky Broadcasting could be saved, but the British government signaled the deal would be delayed as a result of the crisis.

Read the full article here.

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