Posted on 01/16/2018 3:32:14 PM PST by blam
In its latest reminder that China is a (for now) happy holder of some $1.2 trillion in US Treasurys, Chinese credit rating agency Dagong downgraded US sovereign ratings from A- to BBB+ overnight, citing “deficiencies in US political ecology” and tax cuts that “directly reduce the federal government’s sources of debt repayment” weakening the base of the government’s debt repayment.
Oh, and just to make sure the message is heard loud and clear, the ratings, which are now level with those of Peru, Colombia and Turkmenistan on the Beijing-based agency’s scale of creditworthiness, have also been put on a negative outlook.
In a statement on Tuesday, Dagong warned that the United States’ increasing reliance on debt to drive development would erode its solvency. Quoted by Reuters, Dagong made specific reference to President Donald Trump’s tax package, which is estimated to add $1.4 trillion over a decade to the $20 trillion national debt burden.
“Deficiencies in the current U.S. political ecology make it difficult for the efficient administration of the federal government, so the national economic development derails from the right track,” Dagong said adding that “Massive tax cuts directly reduce the federal government’s sources of debt repayment, therefore further weaken the base of government’s debt repayment.”
Projecting US funding needs in the coming years, Dagong said a deterioration in the government’s fiscal revenue-to-debt ratio to 12.1% in 2022 from 14.9% and 14.2% in 2018 and 2019, respectively, would demand frequent increases in the government’s debt ceiling.
“The virtual solvency of the federal government would be likely to become the detonator of the next financial crisis,” the Chinese ratings firm said."
(snip)
(Excerpt) Read more at wallstreetkarma.com ...
I guess we should help out our rating by building HUGE EMPTY CITIES.
Right...?
Oh, and make BitCoin completely illegal —I bet that would inspire confidence, right, China..?
MAGA
Always something, in the form of what? U.S. National Debt continues to spiral out of control and really should be looked upon as a threat to U.S. national security, yo! Given China is the largest ‘banker’ we use, it is hilarious that some here simply ignore the obvious....sooner or later, the ‘banker’ is going to cut you (the U.S.) off.
Yeah well, send some of those immense Cargo ships back to China. I think that might change their minds...
Yeah well, send some of those immense Cargo ships back to China. I think that might change their minds...
Stupid political stunt.
At least the debt is in dollars we print, but in the end we all pay
This is a warning to the government not to shut the government down during the budget process.
How about if China pays all our bills, takes over the country and then in a benevolent move gives it all back to us debt free?
FUPRC (figured I’d get one in before someone else does).
I guess you need some basic math reminders. China is NOT our banker, as they currently hold 1.2 trillion out of 20 trillion owed.
If we halt trading with them, their internal debt will crush them almost immediately.
Don’t buy the globalist “China Century” BS. Their economy is based on mostly corruption and shadow banking, like all things ChiCom. Fake.
WE are their banker. Without us and our money, they go back to the Cultural Revolution days.
Thanks. All the hidden meanings in things. Freepers see all the angles
Anything to do with Jerry Chun Shing Lee’s arrest ?
They’re just trying to get higher interest rates on the treasuries they buy.
Obama runs up.$9 TRILLION in debt in 8 years, and the U.S. is good for a A- rating.
Trump overhauls our income tax structure to make the U.S. more competitive internationally, static analysis claims it “might” increase our debt by $1.4 Trillion over 10 years, and China decides to lower our rating to BBB+.
Yeah, right. Must be operator error on a abacus or something.
I am concerned about the exploding US Net worth, skyrocketing employment and across the board increases in wages and working conditions. Soon, traces of an increasing standard of living will become apparent. And we have hit a business earnings bomb with company after company reporting record profits and giving bonuses to employees.
TWB
how about a 20% import duty on goods from china
Then all the General Aviation companies you bought the eviscerates our Aerospace superiority at the basic level were bought with insolvent dollars so, be nice to us and just give them back you phu**ers!
Um, no.
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