Skip to comments.Chinese Credit Rater Downgrades U.S.
Posted on 11/09/2010 8:35:35 AM PST by jpl
Dagong Global Credit Rating Co., the Chinese rating company that was recently rejected in its bid to be an officially recognized bond rater in the U.S., just downgraded the entire U.S. The always objective Xinhua has the scoop.
The United States has lost its double-A credit rating with Dagong Global Credit Rating Co., Ltd., the first domestic rating agency in China, due to its new round of quantitative easing policy.
(Excerpt) Read more at blogs.wsj.com ...
Goodbye dollar, you sure were nice while you lasted. :(
We need to do what Reagan did in the early 80s to strengthen the dollar
Wow just posted about this on another thread this is the market ticker guys take on it..
Tuesday, November 09, 2010 10:08:03 AM
(CH) Chinese rating agency Dagong Global Credit downgrades US credit rating due to QE program (update) - Chinese press
- Cut long term US sovereign rating one notch to A+ from AA, with a negative outlook.
- “The serious defects in the U.S. economy will lead to long-term recession and fundamentally lower the national solvency. The credit crisis is far from over in the United States and the U.S. economy will be in a long-term recession.” Weaker dollar will hurt US ability to attract dollar capital reflow. “In essence, the U.S. government’s move to devalue the dollar indicates its solvency is on the brink of collapse”
And what are we going to replace the dollar with? Euros? Chinese currency? A basket of currencies? Gold? Nope, nope, and nope.
And Cloward / Piven marches on.
This is what a trade war looks like in the age of ‘free trade.’
So it begins, and while the swingin’ party couple and their posse are overseas, not that they’d know what to do about it, of course.
I propose a basket of commodities.
Someone needs to go into the business of creating the “Util” unit of exchange. It should be backed by actual gold, silver, platinum, oil, wheat, copper, coffee, etc. Those commodities should be regularly audited to ensure they actually exist in ownership by the steward of the “Util.”
Then, people around the world can choose to contract and pay in worth-less Dollars, risky Euro, politically controlled Yuan, or the solidly backed Util.
I want to be a Trillionaire. I’ll invent the “Util.”
Do you people trust Daogang over the likes of Standard and Poors, Moody’s and Fitch?
That’s a really good idea, but there has to be some kind of entity behind it. Maybe you and I should start it, I don’t trust any government or the UN or the IMF or the World Bank.
“The brink of collapse.”
Such rosy optimism.
lol but realistic
You mean the guys who were either stupid idiots or lying for all those years about all those "mortgage backed securities" that were worthless piles of crap, which led to a near-total crash of our economy?
Sorry, I don't believe a word that comes out of the mouth of Warren Buffett or any of those Wall Street jokers. Honestly, have you been living in a cave these last three years or what?
But I thought Glenn Beck was depressing and nuts and a fear monger? He only keeps beating this into our heads on every single show.
I don’t blame China one bit. This is a strong warning. They don’t want hyperinflation either.
This downgrade will be heard around the world.
This is being done by the Fed and Geithner on purpose. Obama has announced to the world that we are “in decline.” They want the Chi-coms and Muslims dominating the NWO.
Get ready for the Global Guided Guild currency, easily implantable into your forehead or wrist, and pay no mind to the shape of that GGG mark.
I agree those evil creeps!
Well, for starters, lets not have a "Federal Reserve Note"...
It doesn’t matter what we think. It matters what the Chinese think, and I’m guessing they are with Daogang.
Yep. Here it comes. I pray everyone is prepared for what's coming. China will be calling the tune.
Apparently so. It’s China so it must be true!
This is just commie propaganda.
You don't suppose that influenced their decision any, do you?
So we should believe communist propaganda? Please.
This is completely worthless, but I guess it’s good that people believe it. Makes the dollar cheaper.
That wasn’t my point. Printing money devalues the dollar, and China is the primary holder of this diminished asset. Hence, it doesn’t matter what I think about Daogong, or Moody’s, or etc. etc.
Other economic powers are not happy about Bernacke’s decision. Brazil last week is already on record criticizing QE2. I’d like to know the rationale behind QE2, because frankly, it seems to me like the intent is to harm our economy and expedite the inflationary process.
What will we do with our dollar? Real easy answer....the government will do a reverse split. Bring in your old dollars and get 10 for 1. We all feel richer but ultimately poorer.
It's amazing how even some conservatives don't seem to understand this.
Instead, the idiots running the Fed, failing to spend their way out of debt, now plan to inflate their way out of it. Here come double digit interest rates.
So what should we do with our money? Take out of savings? How can we prepare?
The days of preparing are nearing their end. The days of dealing with a new reality are neigh. Is it the SHTF/TEOWAWKI? I don’t think so, but our standard of living is going to take a major hit.
That being said:
There’s a guy who posts link to a prepper manual on a lot threads, find it and read it. There are also many websites on the issue.
I am going to start my own credit rating website. Anyone who will not hire me gets a low rating.
You mean those guys who MISSED the dot com bubbl, the real estate bubble, the mortgage backed security debacle......?
What do you expect? These rating companies got paid plenty of money to rate the dot com, real estate, and mortgage companies. That is what they are in business for.
I agree, however the US is still the tall man among midgets. Despite all that Bernanke has done, the US is still in better shape than everyone else.
The rationale for QE2 is very simple, and has everything to do with the Chicoms downgrading our credit rating. The rationale is that our previous model for financing government debt was to externalize it; sell bonds on the foreign market. While not entirely advisable, it was sustainable, so long as the annual debt sale was around $400 billion. However, once it ballooned to $1.4 Trillion, foreign governments could not sustain it. There just isn’t that much credit in the world markets to buy up that much debt. Not year after year, which is what we’ve done and where we are headed for the forseeable future.
So if we can’t externalize the debt, as long as we are running $1.4 Trillion deficits, the Fed has NO CHOICE but to internalize (monetize) it. We sell the bonds to ourselves and print the money to cover it. Inflation will result, and interest rates will go up. A lot. If you are a bank, you can’t lend money at 5% while the value of the monetary asset depreciates 10% annually. The interest rates have to remain above the inflation rate or the banks go under.
By the way, for all you history buffs out there, our old model is how the British financed WW1. They sold bonds on the New York market. Our new model of internalized debt is how the Germans financed the same war; they sold themselves short-term notes because they were frozen out of the New York market. Guess who had the hyper-inflation? That’s where we are headed, and the Chicoms are not stupid; they see it happening and that’s why we’ve been downgraded.
I’m worth $50 million...in Zimbabwe dollars. Meaning that we may all be trillionaires soon enough and it will mean that all of together won’t be able to buy a loaf of bread.
China can help us solve this problem.
They can take Obama and his hate America crap away amd put him up in the Chinese Gulag.
Obama is the root cause of this derelict US fiscal policy.
Palin is all over Bernecke. And all America should be.
You really think they knew that ma and pa your neighbors were lying about their income?
China’s trade policy depends upon an underrated yuan which is linked to the US dollar deliberately. If the US inflates then China must cut the yuan as well or give up that policy.
This in not exactly objective or dis-interested opinion.
We have to bite the bullet and start over. Communists must be ousted.