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China Official: It's Too Late, U.S. Already 'Defaulting'
FOX News ^ | June 10, 2011 | FoxNews.com

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 ...


TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; Government; News/Current Events
KEYWORDS: china; dagongglobal; debt; default; dollar; economy; fitch; moodys; repudiation; shtf; standardandpoors; teachers; zimbabweherewecome

1 posted on 06/11/2011 3:40:55 PM PDT by Tolerance Sucks Rocks
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To: Tolerance Sucks Rocks

Cut the damned spending already! Repeal ObamaCare!! Hell, repeal Obama!!


2 posted on 06/11/2011 3:43:38 PM PDT by Jim Robinson (Rebellion is brewing!! Impeach the corrupt Marxist bastard!!)
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To: 3D-JOY; abner; Abundy; AGreatPer; Albion Wilde; AliVeritas; alisasny; ALlRightAllTheTime; ...
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.

Awww, did I do that???

PING!

3 posted on 06/11/2011 3:44:21 PM PDT by Tolerance Sucks Rocks (I hate politically correct sorosmonkey superheroes!)
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To: Tolerance Sucks Rocks

So, the unabashed printing of money is having a negative effect? Who’d a thunk it?


4 posted on 06/11/2011 3:44:41 PM PDT by raybbr (People who still support Obama are either a Marxist or a moron.)
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To: Tolerance Sucks Rocks

Alternative headline:

Currency Manipulator Complains of Currency Manipulation.


5 posted on 06/11/2011 3:44:57 PM PDT by hc87
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To: Tolerance Sucks Rocks

Failure to raise the debt ceiling would HELP a countries credit rating, right? Everything is bassackward in this F’ed up world.


6 posted on 06/11/2011 3:48:55 PM PDT by central_va ( I won't be reconstructed and I do not give a damn.)
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To: Tolerance Sucks Rocks
All we need to do is strike some jobs growth, like create some quantitative easing within our economy and sit back and watch the economy kick butt!

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.

7 posted on 06/11/2011 3:50:42 PM PDT by EGPWS (Trust in God, question everyone else)
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To: EGPWS
Ooops!

/sarc

8 posted on 06/11/2011 3:52:48 PM PDT by EGPWS (Trust in God, question everyone else)
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To: Tolerance Sucks Rocks

Too late. Start the trade war.


9 posted on 06/11/2011 3:53:50 PM PDT by Cringing Negativism Network (BUY AMERICAN. The job you save will be your son's, or your daughter's)
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To: Tolerance Sucks Rocks

It’s what 20 years of really bad leadership gets ya.


10 posted on 06/11/2011 3:57:37 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: Tolerance Sucks Rocks

China Threatening!

Does this mean China is now officially in charge of U.S. economic policy?


11 posted on 06/11/2011 4:09:23 PM PDT by PoloSec ( Believe how that Christ died for our sins, was buried and rose again for our justification)
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To: Jim Robinson

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.


12 posted on 06/11/2011 4:31:10 PM PDT by gundog (Help us, Nairobi-Wan Kenobi...you're our only hope.)
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To: Tolerance Sucks Rocks
“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.”

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.

13 posted on 06/11/2011 4:33:32 PM PDT by USFRIENDINVICTORIA
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To: USFRIENDINVICTORIA

If you’re smart, you’ll convert your U.S. currency holdings to Canadian right now.


14 posted on 06/11/2011 4:46:49 PM PDT by Tolerance Sucks Rocks (I hate politically correct sorosmonkey superheroes!)
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To: Tolerance Sucks Rocks

15 posted on 06/11/2011 5:13:07 PM PDT by traumer
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To: Tolerance Sucks Rocks

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.


16 posted on 06/11/2011 5:54:12 PM PDT by JerryGoldstein433
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To: JerryGoldstein433; Admin Moderator

Begone, troll!


17 posted on 06/11/2011 6:08:00 PM PDT by Tolerance Sucks Rocks (I hate politically correct sorosmonkey superheroes!)
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To: Tolerance Sucks Rocks

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.


18 posted on 06/11/2011 6:17:58 PM PDT by arthurus (Read Hazlitt's "Economics In One Lesson.")
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To: Tolerance Sucks Rocks

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.


19 posted on 06/11/2011 7:19:12 PM PDT by familyop ("Don't worry, they'll row for a month before they figure out I'm fakin' it." --Deacon, "Waterworld")
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To: Tolerance Sucks Rocks
"If you’re smart, you’ll convert your U.S. currency holdings to Canadian right now."

That's exactly what I told my son, Monday night, to do with his money...and, then stuff it into his mattress.

20 posted on 06/11/2011 7:29:00 PM PDT by blam
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To: Tolerance Sucks Rocks; USFRIENDINVICTORIA
Tolerance Sucks Rocks said:
"If you’re smart, you’ll convert your U.S. currency holdings to Canadian right now."

Agreed. And watch for western Canada to gain power in the future. Nations that increase in the future will be commodities exporters. Nations that will decline are short on manufacturing (e.g., the USA). Too bad about the book binders and left leaning politicos in the east.

We're in decline, but we stand to win the currency and trade wars ahead. We have no other choice. Those who ushered us into vicious cycles of spending and debt are leaders in all levels of business, academia and government. We'll begin to produce, or else.

We will need oil and other commodities, though. Our business leaders will buy oil, for example, even with a lower US dollar in the future, because overseas transportation will be too high (increasing freight fuel, other costs, and lack of credit for future shipping).

See the changes to come as a set of new opportunities.


21 posted on 06/11/2011 7:41:18 PM PDT by familyop (Shut up, and eat your brains!)
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To: Cringing Negativism Network
Too late. Start the trade war.

That would be the best and optimistic outcome. World war is more likely.
22 posted on 06/12/2011 1:37:52 AM PDT by PA Engineer (SP/AW12: Time to beat the swords of government tyranny into the plowshares of freedom.)
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