Use access key #2 to skip to page content.

starbucks4ever (98.01)

Finally, China is doing something right

Recs

21

November 10, 2010 – Comments (5)

http://ftalphaville.ft.com/blog/2010/11/09/398956/us-downgraded-on-qe2-by-chinese-rating-agency/ 

"Dagong has downgraded the local and foreign currency long term sovereign credit rating of the United States of America (hereinafter referred to as “United States” ) from “AA” to “A+“, which reflects its deteriorating debt repayment capability and drastic decline of the government’s intention of debt repayment."

5 Comments – Post Your Own

#1) On November 10, 2010 at 10:32 PM, Valyooo (99.49) wrote:

How is this not front page news?

Report this comment
#2) On November 10, 2010 at 10:33 PM, mtf00l (50.19) wrote:

Oh! I get it! The United States government is going to outsource the Fed to the Chinese Central Bank! =)

Report this comment
#3) On November 10, 2010 at 10:47 PM, starbucks4ever (98.01) wrote:

Krugman was indignant today that these Asiatics dared to B-rate the best printing machine in the world. He tried to dismiss them as lackeys of the Chinese government, which they most certainly are. But their comments about decline of intention of debt repayment are 100% true.

Report this comment
#4) On November 11, 2010 at 1:37 AM, rfaramir (29.37) wrote:

This reads like a non-native English speaker trying to sound like Alan Greenspan. Oh, wait, that's exactly what it is! I had a bit of fun trying to decipher it, so I thought I'd relate what I got out of it. 

1. I didn't think they were still central command and control types in China, but his point 1 amounts to "Your economy isn't sufficiently centrally controlled for you to change your future, nor us to trust it."

Other than that, points 2, 3, and 4 are spot on, and point 5 is a warning:

2. "You're in a recession and it's still getting worse, not better."

3. "Inflating during a recession risks a financial system crack-up so nobody wants your stinking dollars."

4. "Inflating more won't help."

5.  "Inflating more will hurt the rest of us, so we'll have to do something about it."

 

It's hard to say with a straight face "China is doing something right" when they are maintaining a peg to our dollar, meaning they are inflating exactly every bit as much as we are. But even so, downgrading our debt is obviously right. When will the lapdog rating agencies here do the same?

Report this comment
#5) On November 11, 2010 at 8:54 AM, starbucks4ever (98.01) wrote:

They will never do the same because they are just about as independent as Dagong :)

Report this comment

Featured Broker Partners


Advertisement