An article published on the People’s Daily’s website comments on Standard & Poor’s motivation for the recent downgrade of European countries’ credit ratings. The article suggested that the downgrade increased the complexity of resolving Europe’s debt crisis and that it is now more than a simple financial move. The article said, “Britain’s debt crisis is rarely discussed in media reports, but Britain is a country heavily dependent on finances. Its debt crisis is no less severe than in any other country. However, Britain is the closest ally of the United States. [Therefore,] it is almost impossible to downgrade Britain’s credit rating.

“Austria was downgraded unexpectedly, but looking at it from a political angle, Austria has been Germany’s most intimate friend. Therefore, America’s Standard & Poor’s downgrade of Austria’s credit rating can have the effect of giving Germany a warning.

“Downgrading France appears to be reasonable, but it is actually still politically motivated. It has very little effect on the French government’s borrowing costs, but it can have a dire consequence for Sarkozy’s reelection efforts.

“Standard & Poor’s downgrade of European countries’ credit ratings is actually to pave the way for America’s QE3. The voice from the U.S. Federal Reserve for starting QE3 has never stopped; it is, in fact, showing recent signs of heating up. There is not much time left for Obama (to start QE3 before the election in November). Therefore, he needs to hurry up to take action.”

Source: People’s Daily, January 19, 2012
http://world.people.com.cn/GB/16921056.html

Qiushi published an article commenting on the strategic intention of the U.S. in returning to Asia and the impact of that return on the global economic structure. The article stated, “(First), the U.S.’s strategic goal in returning to Asia is to further fortify its dominant position in currency. Imposing political and economic pressure on China will force the Chinese Reminbi to appreciate.

“The second goal of the U.S. return to Asia is to create an Asian Pacific free trade area that the U.S. controls. Due to the direct intervention of the U.S., the Asian Pacific region will be divided. For example, Japan may choose to leave the East Asian Community and, instead, join the TPP, in which China does not participate. If the U.S. will succeed in controlling a free trade region that is the size of 35.5 percent of the global economy, it will have no other trade competitor in the world. “Currently, the competition between the China-Asean Free Trade Area model and the TPP model that the U.S. promotes has become the inevitable focus. Apparently, in the trade arena, the U.S. return to Asia directly targets China. It will isolate China in trade, impact the trade structure of Asian countries, and even have a huge impact on the global trade structure in exports.

“[Lastly], the U.S. return to Asia is advantageous to its long-term plan in the area of high-end industries. By returning to Asia, the U.S. completely suppresses China as well as Asian countries’ new energy enterprises. The U.S.’s intention is to attack China’s economic capability of competitiveness and grab China’s market and resources.”

Source: Qiushi, January 13, 2012
http://www.qstheory.cn/jj/hqsy/201201/t20120113_134730.htm