Skip to comments.China Official: It's Too Late, U.S. Already 'Defaulting'
Posted on 06/11/2011 3:40:49 PM PDT by Tolerance Sucks Rocks
As lawmakers scramble to cut a budget deal and avoid defaulting on U.S. debt, the head of a top Chinese rating agency claims it's too late.
Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., reportedly told state media that the United States has already defaulted by letting the U.S. dollar weaken.
"In our opinion, the United States has already been defaulting," Guan was quoted as saying, according to AFP.
China, likewise, has long come under criticism for allowing its currency to weaken. But while Dagong Global is known for being tough on the U.S., Guan's words carry extra sting as they follow warnings from three top rating agencies about U.S. finances.
Fitch is the latest to warn the U.S. that its sterling credit rating could be at risk if it fails to raise its $14.3 trillion debt ceiling or fails to rein in its long-term deficits.
Moody's and Standard & Poor's have already issued similar warnings.
Meanwhile, lawmakers and White House officials are stepping up the pace of budget negotiations as they try to reach a deal that will persuade Congress to lift the debt ceiling by Aug. 2 -- the deadline Treasury Secretary Tim Geithner has given lawmakers. After that date, Geithner warns, he would run out of ways to avoid a devastating default on U.S. obligations.
(Excerpt) Read more at foxnews.com ...
Cut the damned spending already! Repeal ObamaCare!! Hell, repeal Obama!!
So, the unabashed printing of money is having a negative effect? Who’d a thunk it?
Currency Manipulator Complains of Currency Manipulation.
Failure to raise the debt ceiling would HELP a countries credit rating, right? Everything is bassackward in this F’ed up world.
THEN we can move on to some serious government controls like health care.
Things will be just fine people, sit back and watch some Baywatch reruns or something, Obama will take care of us.
Too late. Start the trade war.
It’s what 20 years of really bad leadership gets ya.
Does this mean China is now officially in charge of U.S. economic policy?
If Obama showed up at Sears they’d cut his Discover card into pieces. Maybe it’s time we didn’t have a sterling credit rating.
And he's 100% correct. This is probably the last time that the U.S. will be able to print money, to pay off debts. In future, the money the U.S. borrows won't likely be denominated in U.S. dollars. If your dollar weakens — you will owe more (due to the cost of converting). That's the way it's always been in the rest of the world. That's the way it will be for the U.S., when you lose (fritter away) reserve currency status.
Please note, I'm not gloating about this. I'm not the least bit happy about the situation — even though I'm not an American. I want the U.S. economy to be strong, because that's also good for your allies and trading partners. If anyone cares to look through my past posts (like the MSM Palin e-mail fest); you'd see that I've been sounding the alarm about public debt, and the importance of reserve currency status, for years.
If you’re smart, you’ll convert your U.S. currency holdings to Canadian right now.
Cut the spending and repeal Obama along with the care. Right on Jim!
You all are being unpatriotic turning away from the dollar. What is next you guys are going to buy gold and silver as if they have any “real” value like those goldbug nutjobs? The dollar is still king and is an honest sound currency. It is still strong despite the naysayers.
Inflation is, in fact, progresive Default. All governments eventually come to it. When they embrace it wholeheartedly then is the collapse of the money and the economy.
There’s no way federal or local government will cut enough spending to avoid default. Government will not willingly shrink itself. The temporary squeeze is only a failed attempt to substantially bring oil prices down and the dollar up. Expect much more monetization and debt.
That's exactly what I told my son, Monday night, to do with his money...and, then stuff it into his mattress.
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