A Xinhua commentary cautioned about the possibility that the U.S. may default on its debt. The article said, “No one wants to see the U.S. breach its debt obligations, but (everyone) has to be prepared (in case it happens). As long as no one can shake the U.S.’s (global) hegemony in military, currency, and media, any U.S. ‘action to repudiate its debts’ will benefit itself at a cost to others.” “In the current situation, only by ‘repudiating its debts’ can the U.S. rapidly decrease its debt ratio and reduce its heavy debt burden, so as to have ‘consumption recover.’”
Source: Xinhua, July 7, 2011
http://news.xinhuanet.com/world/2011-07/07/c_121635675.htm