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Leading Chinese credit ratings agency downgrades rating of United States government
Citywire.co.uk ^ | Wednesday July 14, 2010 | Dylan Lobo

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.


TOPICS: Crime/Corruption; Front Page News; Government; News/Current Events
KEYWORDS: bankruptcy; china; credit; debt; economy; government
Uh-oh. Years ago this wouldn't have concerned me, but China is now one of our biggest creditors. And so it begins...
1 posted on 07/14/2010 1:59:27 PM PDT by jpl
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To: jpl

The ChiComs sent me a credit ap and I simply told them I was not paying them back.


2 posted on 07/14/2010 2:00:58 PM PDT by griswold3 ('Regulation and law without enforcement is no law at all)
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To: jpl

Watch it fall lower and lower the longer the usurper is squatting in our house.


3 posted on 07/14/2010 2:01:03 PM PDT by bgill (how could a young man born here in Kenya, who is not even a native American, become the POTUS)
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To: jpl

Sounds about right. At least one credit rating firm is being accurate.


4 posted on 07/14/2010 2:01:20 PM PDT by ConservativeMind (The NAACP is a bunch of cracker-hating bigots and I condemn the NAACP for being a racist element.)
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To: jpl

It must be racism.....call the NAACP!


5 posted on 07/14/2010 2:02:33 PM PDT by Dallas59 (President Robert Gibbs 2009-2013)
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To: ConservativeMind

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.


6 posted on 07/14/2010 2:06:29 PM PDT by jpl (It's "My Big Fat Deadly Greek Riot", coming soon to a bankrupt socialist state near you.)
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To: jpl

Interest Rates WILL climb.


7 posted on 07/14/2010 2:07:11 PM PDT by demsux (Obama: THE job destroyer)
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To: jpl

They’re still being too generous.


8 posted on 07/14/2010 2:09:25 PM PDT by perfect_rovian_storm (The worst is behind us. Unfortunately it is really well endowed.)
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To: demsux

As my Uncle used to say, “I’d rather owe it to you than cheat you out of it.”


9 posted on 07/14/2010 2:09:31 PM PDT by glorgau
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To: glorgau

Why choose when you can do both?


10 posted on 07/14/2010 2:10:59 PM PDT by perfect_rovian_storm (The worst is behind us. Unfortunately it is really well endowed.)
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To: jpl; All
Obama China Money
11 posted on 07/14/2010 2:14:12 PM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: jpl
Obama Poker
12 posted on 07/14/2010 2:16:13 PM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: jpl

Bookmark.


13 posted on 07/14/2010 2:26:02 PM PDT by IrishCatholic (No local Communist or Socialist Party Chapter? Join the Democrats, it's the same thing!)
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To: jpl

“It’s not clear exactly how Dagong came to its conclusions”

Follow the money folks...why would this occur ? Who would benefit ?

Lemme guess......


14 posted on 07/14/2010 2:31:35 PM PDT by onona (dbada)
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To: jpl

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


15 posted on 07/14/2010 2:34:07 PM PDT by silverleaf (Those who can make you believe absurdities can make you commit atrocities.)
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To: Dallas59
It must be racism.....call the NAACP!

You mean the former NAAACP?

16 posted on 07/14/2010 2:54:43 PM PDT by CDB ( "How many divisions does the Federal Court have?"--Ken StalinCzar)
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To: jpl

From SNL spoof: “I want you to kiss me when you do sex with me, Mr. President”.


17 posted on 07/14/2010 3:49:11 PM PDT by Eleutheria5 ( Two-state solution: A bad idea whose time has gone.)
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To: ConservativeMind

[quote]
Sounds about right. At least one credit rating firm is being accurate.
[/quote]

Yeah, and it’s just a coincidence that a Chinese rating agency ranks China as number one.

Worthless rating.


18 posted on 07/14/2010 4:34:12 PM PDT by BenKenobi
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To: BenKenobi

Well, what other country, aside from China, has several trillion dollars of surplus, looking for a place to put it all.

Get real.


19 posted on 07/14/2010 4:43:22 PM PDT by ConservativeMind (The NAACP is a bunch of cracker-hating bigots and I condemn the NAACP for being a racist element.)
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To: BenKenobi

They didn’t place China in the first rank, but in the second - with Canada and Germany.

Sounds about right on present indications, frankly.


20 posted on 07/14/2010 4:47:06 PM PDT by headsonpikes (Genocide is the highest sacrament of socialism - "Who-whom?")
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To: griswold3

You used the wrong word. These are obviously capable Chicaps.


21 posted on 07/14/2010 4:55:40 PM PDT by bert (K.E. N.P. N.C. +12 ..... The winds of war are freshening)
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To: headsonpikes

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.


22 posted on 07/14/2010 6:00:02 PM PDT by BenKenobi (We cannot do everything at once, but we can do something at once. -Silent Cal)
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To: jpl

“which widely counter the views held by established agencies Fitch, Moody’s and S&P.”

They sound much more logical than “established agencies”.


23 posted on 07/14/2010 6:00:25 PM PDT by Grzegorz 246
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To: ConservativeMind

“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.


24 posted on 07/14/2010 6:01:00 PM PDT by BenKenobi (We cannot do everything at once, but we can do something at once. -Silent Cal)
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To: blam; TigerLikesRooster; neverdem

Ping.


25 posted on 07/14/2010 6:02:15 PM PDT by FreedomPoster (No Representation without Taxation!)
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To: BenKenobi
Yeah, and it’s just a coincidence that a Chinese rating agency ranks China as number one.

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.

26 posted on 07/14/2010 6:24:52 PM PDT by jpl (It's "My Big Fat Deadly Greek Riot", coming soon to a bankrupt socialist state near you.)
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To: jpl
"Uh-oh. Years ago this wouldn't have concerned me, but China is now one of our biggest creditors. And so it begins..."

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?

27 posted on 07/14/2010 6:33:20 PM PDT by Flag_This (Real presidents don't bow.)
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To: jpl

Why should I trust Chinese liars who rate themselves high?


28 posted on 07/14/2010 6:38:47 PM PDT by BenKenobi (We cannot do everything at once, but we can do something at once. -Silent Cal)
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To: BenKenobi; jpl

>>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.


29 posted on 07/15/2010 5:05:41 PM PDT by FreedomPoster (No Representation without Taxation!)
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To: FreedomPoster

I don’t trust them either. That’s why I’m in the US dollar and nothing else.


30 posted on 07/16/2010 10:36:34 AM PDT by BenKenobi (We cannot do everything at once, but we can do something at once. -Silent Cal)
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