Blame the commie traitors in congress. 100% their fault.
<http://scottystarnes.wordpress.com/author/scottystarnes/> Chinese
Credit Rater Downgrades
U.S.<http://scottystarnes.wordpress.com/2010/11/09/chinese-credit-rater-downgrades-u-s/>
*Scotty Starnes
<http://scottystarnes.wordpress.com/author/scottystarnes/>*| November
9, 2010 at 2:30 PM | Tags: bond
rater <http://scottystarnes.wordpress.com/tag/bond-rater/>, capital
flow<http://scottystarnes.wordpress.com/tag/capital-flow/>,
China <http://scottystarnes.wordpress.com/tag/china/>, credit
rating<http://scottystarnes.wordpress.com/tag/credit-rating/>,
Dagong Global <http://scottystarnes.wordpress.com/tag/dagong-global/>, Dagong
Global Credit Rating
Co<http://scottystarnes.wordpress.com/tag/dagong-global-credit-rating-co/>,
devaluing the
dollar<http://scottystarnes.wordpress.com/tag/devaluing-the-dollar/>,
economy <http://scottystarnes.wordpress.com/tag/economy/>,
greenback<http://scottystarnes.wordpress.com/tag/greenback/>,
inflation <http://scottystarnes.wordpress.com/tag/inflation/>, printing
money <http://scottystarnes.wordpress.com/tag/printing-money/>, quantitative
easing <http://scottystarnes.wordpress.com/tag/quantitative-easing/>,
recession <http://scottystarnes.wordpress.com/tag/recession/>, The Federal
Reserve <http://scottystarnes.wordpress.com/tag/the-federal-reserve/>,
Xinhua <http://scottystarnes.wordpress.com/tag/xinhua/> | Categories:
Uncategorized <http://scottystarnes.wordpress.com/category/uncategorized/> |
URL: http://wp.me/pvnFC-3pU
So it begins. China has warned the Obama administration about it's record
deficit spending. Now the U.S. has a lower credit rating thanks to the
quantitive easing scheme produced by our Federal Reserve. Basically, the Fed
is printing money which devalues the dollar and causing investors, like
China, to be concerned.
The Wall Street Journal
<http://blogs.wsj.com/marketbeat/2010/11/09/chinese-credit-rater-downgrades-us/>
reports:
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.”<http://www2.chinadaily.com.cn/china/2010-11/09/content_11524811.htm>
*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.*
*Dagong Global on Tuesday downgraded the local and foreign currency
long-term sovereign credit rating of the U.S. by one level to A+ from
previous AA with “negative” outlook.*
*The Chinese rating agency said the downgrade reflected the U.S.’s
deteriorating debt repayment capability and drastic decline of the U.S.
government’s intention of debt repayment.*
*“The serious defects in the U.S. economy will lead to long-term recession
and fundamentally lower the national solvency,” Dagong said in a report.*
The Chinese rating agency said *the Federal Reserve’s new round of
quantitative easing would further depreciate the U.S. dollar and was
entirely counter to the interest of the creditors.*
The Federal Reserve last week decided *to buy 600 billion U.S. dollars of
U.S. Treasury securities and other assets held by banks* in a bid to inject
fresh funds into the economy and bring down long-term interest rates.
*“The credit crisis is far from over in the United States and the U.S.
economy will be in a long-term recession,” *Dagong Global warned in the
report, adding a weakening greenback will cripple U.S. capability to attract
dollar capital reflow.
Needless to say, the markets don’t find this credible. Bond yields haven’t
done anything. As the Journal’s Joy Shaw
reported<http://online.wsj.com/article/SB10001424052748704082104575515470951666514.html>,
Dagong was little-known before it surprised the credit-rating world in July
by publishing sovereign ratings for China that were higher than those for
the U.S., the U.K., Japan and other major economies. The results differed
from those issued by major credit-rating firms.
While we feel justified in giving Dagong’s neutrality the stink eye on this
one, it’s not like Western credit ratings agencies have really distinguished
themselves in recent years by slapping their good housekeeping AAA seal on
some of the most toxic bond sludge Wall Street could concoct.
Continue
reading>>><http://blogs.wsj.com/marketbeat/2010/11/09/chinese-credit-rater-downgrades-us/>
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