Reaction of World Press to U.S. debt vote

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FYI: What some of the World Press

is saying about the U.S. debt circus

Major U.S. media has been filling it’s air-time and column inches with emergency/crisis, catastrophic talk for weeks, the sometimes bemused world press has been paying attention too.

China Daily – “The agreement [on raising the US debt ceiling] is likely to avert default by Washington and it certainly is a relief for China . . . We still cannot rule out the possibility of a downgrade of the US credit rating if Washington fails to come up with a long-term and balanced solution to address its debt problem . . . For policy makers in Beijing, seeking alternative ways to invest the massive foreign exchange reserves and to reduce its rapid accumulation remain the crucial challenges.” (Interview with Chen Daofu, director, Policy Research Centre, Financial Research Institute, State Council Development Research Centre).

The Moscow News (Moskovskiye Novosti) – “America has changed its mind about having a Judgment Day… But the obvious inability to reach an agreement that was demonstrated by political forces in the US has had an equally damaging effect on the country… The image of the country as a responsible borrower has suffered most.” (Article by Denis Voroshilov and Igor Kryuchkov).

Germany’s Frankfurter Allgemeine Zeitung: – “Since the tax reductions for all Americans introduced under Obama’s predecessor Bush have been extended to the end of next year, state debt can be expected to become a bone of contention in the election campaign after all, over the issue of possible subsequent tax hikes. The reason is that the laborious compromise that has been found is more of a short-term bridging measure than a long-term solution to excessive US debt.” (Commentary by Holger Steltzner).

The French Le Nouvel Observateur: – “In this political battle, President Obama’s image as someone who is able to regulate the bipartisan consensus will have been tainted by the concessions made to the Republicans. The negotiations and the delay of the vote in the House of Representatives on Thursday 28 July announced by John Boehner, whose authority has been questioned, will have contributed to the unity of the Republican Party wavering, under the effect of the declarations of the Tea Party representatives who have succeeded in imposing their agenda to Washington.” (Article by Judith Chetrit).