Posted on 07/14/2010 1:59:24 PM PDT by jpl
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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