China urges change the dollar reserve currency latest (BBCRussian.com, England)

China urges U.S. to replace a new reserve currency ("BBCRussian.com", UK)Naikrupneyshy U.S. lender China has fallen off sharply criticized by South American authorities for failing to prevent the drop in the credit rating of Washington and expressed confidence that the world needs another reserve currency that can change the dollar.

Gone are the days when the U.S. could "provide credit to themselves out of the problems that they themselves created," said the official agency China's Xinhua.

"The world must be brand new reserve currency, which will change Bucks"- Continues the agency.

The need for the newest reserve currency than once read as Russian authorities, offering a version of Russian ruble.

India's reaction to the fall Rated The United States also has been negative, at the time, such as Japan and South Korea have expressed confidence that the South American government bonds as before credible.

Bad weather

On Friday, the international rating agency Standard & Poor's for the first time downgraded the U.S. credit rating by one point.

Until now, the U.S. had the highest rating of AAA, he is now reduced to AA +.

With all this weather agency has been defined as "bad." This means that analysts do not rule out the upcoming reduction rankings in the coming months.

The main reason for this was safe to increase the budget deficit.

In addition, the reduction plan passed by Congress shortage, according to experts, is not effective enough.

During the long months of hot congressmen in Washington were discussing a bill to raise the level of public debt.

When the earlier rumors of downgrading the U.S., anonymous sources in Washington were making statements to the press about the fact that in the analysis of Standard & Poor's are severe errors.

This was after the announcement of the downgrade of the representative of the Ministry of money the U.S., with it, he said, is a very large amount. "The miscalculation in the assessment of two trillion bucks says for itself," — he said.

Unemployment and public debt

BBC correspondent, BBC they say that the downgrade would undermine investor confidence in the South American economy, which is already, is not at the highest level due to the huge public debt and the highest level of unemployment.

August 2 Barack Obama signed into law, the main aim of which was to reduce the economical disadvantage U.S. $ 2.4 trillion dollars over 10 years.

But this figure is much less than the $ 4 trillion that Washington analysts recommended to save S & P.

In addition, as stated by the head of the department of sovereign ratings S & P, John Chambers, on the outlook of analysts also impacted by the fact that the U.S. is very long resolved to raise the debt ceiling.

"The first thing they should do is raise the ceiling as soon as possible to avoid a debate," — he said in an interview with CNN.

On Friday morning announced data on unemployment in the United States. Despite the fairly high level of 9.1%, it is all the same was below forecasts.

Meanwhile, almost the other day the New York stock market suffered the most severe drop in shares in three years, reminding investors of action in 2008, when the bankrupt south american bank Lehman Brothers and the onset of the global financial crisis.

International reaction

Representatives of monetary circles 2-Huge U.S. partners in Asia — South Korea and the Land of the Rising Sun — have responded to the message about lowering the U.S. credit rating is quite relaxed.

"Trust in the South American municipal treasury obligations and relevant to their vkladyvatelnoy appeal on our part will not change as a result of this event," — AFP news agency quoted an unnamed representative of the Japanese authorities.

Japan is the second country after China, the U.S. lender. It contains a huge part of its own foreign reserves in American securities.

A senior Bank of Korea said Reuters that in the not to distant future, he does not expect any noticeable market reaction to this news, noting that this scenario — one of the negative, which saw market analysts.

In the USA the first to react to this news political opponents of the party of Barack Obama — the Republicans. Many of them mainly responsible for lowering the credit rating of the U.S. dubbed President Barack Obama.

"This is a real blow to the U.S. economy, in our position in the world. And the president should be held responsible for what did not show tribute to the level of government. Until now, he has not offered any phased plan for returning the country back on track economically rovnenky. Now we litsezreem to what results is not enough competent management ", — said Rick Santoro, which going to fight for the right to nominate for president from the Republican Party.

Favourite Senate Democrats Harry Reid, in turn, said the downgrade S & P has shown the importance of a "balanced approach to reducing the budget deficit, in which you have to combine reduction of government spending and measures to increase revenues."

In the middle of such measures, he listed the rejection of tax breaks for the wealthy and oil companies.

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