Anybody want to bet when the other rating agencies are forced to follow suit?
Anybody want to bet when the T-Bill's rating hit's junk status?
Posted on 08/02/2011 9:17:23 PM PDT by Zakeet
As was predicted last week, China's rating agency Dagong, unlike its worthless western counterparts, has come through on its threat to downgrade the US in the event a subpar debt ceiling deal was hammered out. As Xinhua reports, 'Dagong Global Credit Rating Co. said Wednesday it has cut the credit rating of the United States from A+ to A with a negative outlook after the U.S. federal government announced that the country's debt limit would be increased." Confirming that not being branded a NRSRO is the only thing that allows a rater to still think straight (and not in terms of lost client revenue if one goes ahead and tells the truth), Dagong's decision was spot on: "The decision to lift the debt ceiling will not change the fact that the U.S. national debt growth has outpaced that of its overall economy and fiscal revenue, which will lead to a decline in its debt-paying ability, said Dagong Global in a statement." So while Moody's, which is now certified as the laughing stock of the sheep herd (sorry Mark Zandi, you will never be promoted to anything in this administration - we promise you), pretend that all is well and that the only thing better than $14.3 trillion in debt is $16.8 trillion, China demonstrates what happens when a rating agency actually knows how to do addition and/or long division.
(Excerpt) Read more at zerohedge.com ...
Anybody want to bet when the other rating agencies are forced to follow suit?
Anybody want to bet when the T-Bill's rating hit's junk status?
It’s called “talkin’ their position”.
Can we start the trade war now?
Not to be contrary, but I think it's not happening in the next decade.
.. anyway when we stop buying the goods they and "American" corporations make there to sell here employing tens of millions of them those tens of millions will lose their jobs and join the other tens of millions of unemployed Chinese AND there will be REVOLUTION in Red China.
Sounds good to me.
When Dagong gets frank about the B.S. in China’s own portfolios then it will be worth a listen.
Oh no, I am guessing this
http://www.youtube.com/watch?v=2N8gJSMoOJc&feature=player_embedded
is going to happen sooner than a year from now
Not to be contrary, but take the amount of the deficit HERE, assume any reasonable growth in tax receipts (say, 3 percent or less), any reasonable interest rate (say, 6 percent or more), and try to amortize the U.S. debt.
You will quickly discover that we're already bankrupt. Other companies and countries in our financial position are rated in default, not merely junk.
IMHO, it is only a matter of time before we reach the state where we can no longer threaten the rating agencies. At that point our score will drop like a rock down a deep well. In fact, we may be lucky if the T-Bill pauses briefly junk status, before falling to trash.
Zerohedge is a blog. Please place in the appropriate forum.
Zero Hedge is also a respected news source ... much more accurate and trusted than numerous other news blogs owned by MSM entities such as the New York Times, the Los Angeles Times, and the Washington Post ... blog sources which are regularly posted News/Activism Forum.
ZH was started by some ex-Goldman employees who quit in disgust after watching their company rape nations, including this country, and pocket billions for the privilege. They were also concerned by the lack of coverage, and misleading reporting by the increasingly liberal Mainstream Business Media.
Since its founding a little over two years, ZH has exposed numerous financial frauds and corrupt practices. It has grown to the point where it has more traffic than almost any other business news source.
so...I guess deficits do matter after all.
Thanks for your source.
The first sentence reads:
“Zero Hedge is an American financial blog”.
Thanks for reiterating that it is in fact - a blog.
Please place appropriately.
Thanks again,
Admin? When are you going to learn that everything is a blog. Worse, news agencies need to sell for web page hits or newsstand copy including slanting to their own bias. Even scientific journals slant to their own bias.
Maybe a meeting of the minds is needed to clarify fact from fiction, it’s the only two categories necessary. Sub-heading would be first person (eye-witness), second person, then hearsay (rumor).
Opinions based on real-time events belongs where?
Oh no, I am guessing this
http://www.youtube.com/watch?v=2N8gJSMoOJc&feature=player_embedded
is going to happen sooner than a year from now
____________________________________________
Well, I am trying to learn but am not sure what to think when, after watching the video you linked, I see that it was posted about a year ago in Nov. 2010
Revolution is always a possibility, but not because of that.
It is indeed likely that their market will be reduced. But it will be reduced anyway if the USA can't pay. China will not need a beggar country as a trade partner.
Today the USA represents about 20% of China's sales. That is not very unexpected, considering that China and India combined make about 30% of the population of Earth. Another 30% is in Africa, but they are too poor (and too busy fighting) to be of interest. Europe represents the rest, and it's doomed to keep buying Chinese since they regulated their own industry out of existence.
If China isn't able to recover losses, it will simply nationalize all the US assets in China - and there is a lot of that - whole factories, whole research centers where native Chinese are employed. Those factories will keep producing without missing a beat, but the revenue will stay in China. If that happens, we can kiss those factories goodbye, short of launching nukes (what will that gain us?)
The world (except US allies, if we have any left by then) will support China in that acquisition. They will want to move on, and that means cutting the losses and forgetting about the USA for a few decades. Probably a replacement currency will spring up, based on Yuan or gold or something else.
As I believe, China will have national interest in dropping the USD at a carefully chosen point in time. It will fall anyway, so it's better for China to do it on their terms. There is no possible chain of future events where the USA doesn't default or doesn't devalue its currency by runaway emission. The country spends as a drunken sailor, so there should be no surprise if it ends up just as rich.
That would mean the end of the world.
Those Dagong Chinese!
Razzz42? When are you going to realize I just enforce the rules? Talk to the complaint department.
International Business Times: Beijing Rating Agency Downgrades US Debt Rating
"The world (except US allies, if we have any left by then) will support China in that acquisition."
Yes, it's Deng's version of Lenin's NEP (New Economic Plan). Lure the "useful idiots" in, use 'em to the max, steal their technology and intellectual property and then take everything and kick 'em out when they've created the wealth. What a deal!
The Chi-Coms (murderers of tens of millions of their own citizens) handled NEP better than the Soviets. The Soviet ideologues were afraid of free enterprise. After Lenin died they "terminated" the nepmen.
The Chi-Coms are doing it right, they personally get the wealth and they keep absolute power as Communist dictators.
Of course once the "useful idiots" lose their investments they'll be back here in America swarming all over Washington demanding their TARP. That kind of government interference is good. Of course.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.