CBS Evening News: Washington Has Borrowed $1 Trillion From China As Economies Become Increasingly Linked
BEIJING, April 2, 2009 | by Barry Petersen
The IOUs were loans to the United States that funded America's high spending lifestyle, reports CBS News correspondent Barry Petersen. If China stops loaning money, that lifestyle is doomed.
"Unfortunately, average Americans are going to see a decline in their standard of living," said Peter Schiff, the president of Euro Pacific Capital. "We have simply squandered our wealth. We've been living beyond our means for years and borrowing to do it and now we can't pay the bills."
A sign of China's rise: Its prime minister recently lectured the United States like a first world country nervous about the health of a third world economy.
"Request the U.S. to maintain its good credit and guarantee the safety of China's assets," Wen Jiabao said.