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State media in China on Monday blamed America’s massive military expenditure and international footprint for sparking the crisis that resulted in the downgrade of the US credit rating, calling for a halt to the global “domineering” harming its economy. Toughening up its rhetoric on the financial meltdown that has sent shockwaves in markets worldwide, the Xinhua news service lambasted both the US and Europe for their insatiable appetite for spending and the shortcomings of their democracies. It also warned Washington against attempting to boost growth and exports by allowing the dollar to weaken, which could have a drastic effect on Beijing due to its huge stash of dollar assets.
