http://www.reuters.com/article/2011/08/06/crisis-idUSLDE77504R20110806

* China renews call for another global reserve currency

* G7 major powers to confer on markets crisis - source

* Obama says let's work together

(Adds German reaction, analyst, ECB sources on Italy bonds)

By Walter Brandimarte and Melanie Lee

NEW YORK/SHANGHAI, Aug 6 (Reuters) - China bluntly criticised the United States on Saturday one day after the superpower's credit rating was downgraded, saying the "good old days" of borrowing were over.

Standard & Poor's cut the U.S. long-term credit rating from top-tier AAA by a notch to AA-plus on Friday over concerns about the nation's budget deficits and climbing debt burden.

China -- the United States' biggest creditor -- said Washington only had itself to blame for its plight and called for a new stable global reserve currency.

"The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone," China's official Xinhua news agency said in a commentary.

After a week which saw $2.5 trillion wiped off global markets, the move deepened investors' concerns of an impending recession in the United States and over the euro zone crisis. MORE>>>