Posted on 07/14/2010 1:59:24 PM PDT by jpl
In what could be seen as a sign that the world has been turned on its head, China's leading credit rating agency has stripped the UK, the USA, Germany and France of their AAA-ratings.
Dagong Global Credit Rating, has cut the US to AA, while the UK and France are have been cut to AA- with Spain and Italy ranked at A-.
At the same time, Dagong has upgraded China to AA+, putting in it the same category as Germany, Holland and Canada.
The rationale is based on the simple prognosis that the growth potential in China is far greater than in the debt-laden economies of West.
Dagon chairman Guan Jianzhong said: 'The reason for the global financial crisis and debt crisis in Europe is that the current international credit rating system does not correctly reveal the debtor's repayment ability.'
Dagong also sees Australia and New Zealand as among the strongest nations, slapping an AAA-rating on them. They are joined by Norway, Denmark, Switzerland and Singapore.
It's not clear exactly how Dagong came to its conclusions, which widely counter the views held by established agencies Fitch, Moody's and S&P.
The ChiComs sent me a credit ap and I simply told them I was not paying them back.
Watch it fall lower and lower the longer the usurper is squatting in our house.
Sounds about right. At least one credit rating firm is being accurate.
It must be racism.....call the NAACP!
This is really bad. There’s no way we’re going to be able to continue borrowing money from them at the same rates that we have been accustomed to.
Interest Rates WILL climb.
They’re still being too generous.
As my Uncle used to say, “I’d rather owe it to you than cheat you out of it.”
Why choose when you can do both?
Bookmark.
“It’s not clear exactly how Dagong came to its conclusions”
Follow the money folks...why would this occur ? Who would benefit ?
Lemme guess......
Oh yeah, all those wifeless Chinese men have nothing better to do than work
Imagine who are going to be the Chinese consumers in 20 years, with a missing generation of children and families
You mean the former NAAACP?
From SNL spoof: “I want you to kiss me when you do sex with me, Mr. President”.
[quote]
Sounds about right. At least one credit rating firm is being accurate.
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Yeah, and it’s just a coincidence that a Chinese rating agency ranks China as number one.
Worthless rating.
Well, what other country, aside from China, has several trillion dollars of surplus, looking for a place to put it all.
Get real.
They didn’t place China in the first rank, but in the second - with Canada and Germany.
Sounds about right on present indications, frankly.
You used the wrong word. These are obviously capable Chicaps.
Why?
Their demographics are crap. In 10 years they’ll be older than the USA.
I don’t believe anything that comes out of China.
“which widely counter the views held by established agencies Fitch, Moody’s and S&P.”
They sound much more logical than “established agencies”.
“Well, what other country, aside from China, has several trillion dollars of surplus, looking for a place to put it all.
Get real.”
And what other country has a labour shortage of hundreds of millions of people, pricing themselves out of the market?
China is doomed.
Ping.
Worthless rating.
Others could just as easily say the same thing about Moody's, S&P, and Fitch, which are American ratings agencies, and apparently that's exactly what's starting to happen now.
The problem is that we're borrowing massive amounts of money from China, not the other way around, and they're making it abundantly clear that they don't really care what our ratings agencies say, and that they're starting to have doubts about our ability to repay our debt.
This means we're going to have to start looking elsewhere to borrow our money, and if others start to decide that they agree with China, there will be no way for us to avoid paying higher interest rates on our debt.
I read stories about our debt to China and it alarms me, but what about that old saying: "If you owe a bank thousands, you have a problem; owe a bank millions, the bank has a problem?"
Why aren't the Chinese equally concerned about our debt and their vulnerability?
Why should I trust Chinese liars who rate themselves high?
>>Why should I trust Chinese liars who rate themselves high?
You probably shouldn’t.
That said, why should you trust the liars and Moodys, S&P, and Fitch?
They’re the guys who rated all those mortgage backed securities so high, among the important causes of our recent financial debacle. They’ve amply proven they’re whores when it comes to handing out high ratings. Pay them enough, they’ll give you what you want. It’s an inherently crooked system.
I don’t trust them either. That’s why I’m in the US dollar and nothing else.
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