China warns of 'fiscal abyss'
(01-02 19:01)
China's official news agency has warned that the US must get to grips with a budget deficit that threatens not a "fiscal cliff" but a "fiscal abyss."
In a commentary issued after the US reached a last-minute budget deal, Xinhua said that the country was clearly the dominant economic power, but it "simply cannot live on borrowed prosperity forever", and its politicians seemed reluctant to tackle its total debt of about US$16 trillion, RTHK reports.
"In a democracy like the United States, tax increases and spending cuts, the exact dose of medicine needed to cure its chronic debt disease, have long proved hugely unpopular among voters," Xinhua said.
"So the politicians have chosen to kick the can down the road again and again. But as we all know, the can will never disappear. Sometime and somewhere, you might trip over it and fall hard on the ground, or in the US case, into an abyss you can never come out of," it said.
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