America's Debt Problems And The Impact On Its Economy

The recession and years of deficit fiscal policy makes the United States total publicdebt to accumulate. Since April18,2011international rating agency Standard&Poor’s Financial Services LLC lowered the long-term sovereign bond rating from"stable" as "negative", the U.S. sovereign credit debt crisis intensified in the UnitedStates. May16, the U.S. federal government announced that it has exceeded thestatutory debt ceiling of$14.29trillion, as of early August, the U.S. government hadto be temporarily increased by$2.4trillion debt ceiling. On the evening of August5,Standard&Poor’s announced that the U.S. sovereign credit rating lowered from"AAA" to "AA+".Standard&Poor’s lowered the U.S. debt rating trigger the world’s financial turmoil,the global concern, but also for the debt problems of the United States sounded thealarm, urging the U.S. government to address and improve the deficit and debtsituation. Departure from the U.S. debt status, interpret the reasons for the formationof the U.S. debt crisis, the crisis of U.S. debt on the U.S. economy, the prospects ofthe U.S. debt problem, to explore the revelation of the U.S. debt problems of theChinese economy. China as the largest U.S. creditor, the valuation of U.S. debt fell toChina’s first foreign exchange assets has shrunk, holders of U.S. debt amount is more,the greater the loss. I consider this incident to our warning and opportunity, not simplyholdings of U.S. Treasuries, but from the long-term consideration to how to get rid ofrelying solely on the U.S. debt, learn a lesson and lift the U.S. debt on our"kidnapping". In this U.S. debt crisis ", China should seize the opportunities and facethe challenges, the establishment of emerging economies to contribute to stabilizingthe world economy.