Sure, we will rate ourselves AAA, but China rates us A+ with
negative outlook. -g-
bizindia.net
"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 its national
solvency,' Dagong said in a report.
The Chinese rating agency said the Federal Reserve's new
round of "quantitative easing" (printing of paper currency)
would further depreciate the U.S. dollar and was entirely
counter to the interest of the creditors."
None of this is meaningful, but their rating is probably
correct -g-
online.wsj.com
LOL!
BEIJING (Dow Jones)--The head of China's largest ratings
agency, Dagong Global Credit Rating Co., Tuesday said he
agrees with Standard & Poor's downgrade of its outlook on
U.S. government debt, but said the move was a mere "gesture,"
predicting that S&P wouldn't actually downgrade the U.S.'s
AAA-rating.
"The fundamentals of the U.S. economy do not support an AAA
rating... the U.S.'s actual debt repayment ability has
already collapsed," Dagong Chairman Guan Jianzhong told Dow
Jones Newswires in an interview.
Dagong cut its rating on the U.S. in November last year to A+
from AA, with a negative outlook.
"We will consider a further downgrade the U.S. rating, as the
economy hasn't shown any sign of improvement in its
fundamentals," Guan said.
Guan said the U.S has already infringed on the interest of
creditors with its policy of quantitative easing launched
last year, which has caused the U.S. dollar to depreciate.
"The more you accumulate (U.S. Treasury) holdings, the more
losses you will suffer... this is a real headache for China's
policymakers," Guan said, adding that China suffered a loss
on its holdings of U.S Treasurys.
Guan expressed strong doubts over whether S&P would actually
downgrade the U.S. credit rating.
"The sovereign credit rating is a core interest of the U.S.,
the ratings have been nonobjective and unequal. They won't
ever make real cuts," Guan said. |
