Posted on 08/02/2011 10:51:36 PM PDT by george76
Chinese credit-rating agency Dagong Global Credit Rating Co. again downgraded U.S. sovereign debt Wednesday and warned of further downgrades, the state-run Xinhua news agency reported....
Dagong cut U.S. Treasurys to A from A+, with a negative outlook, saying growth in U.S. debt is still outpacing revenue growth. The latest move followed a Dongang downgrade of U.S. debt from AA to A+ in November, citing the launch of the Federal Reserve's second round of quantitative easing.
"The agency said the approval to raise the debt ceiling indicated that there will not be any positive changes in factors that will influence the country's debt-paying ability in the long run,"
...
The news came the same day as a Xinhua editorial said the U.S. had failed to defuse its “debt bomb.”
(Excerpt) Read more at marketwatch.com ...
Meanwhile the chinese will sell less crap because we will tighten our belts.
The chinese are over leveraged.
We’ll see who survives this goat rope.
No. It’s U.G.L.Y.
We have food, gold, silver...inflation already.
Ben Bernack is printing more money and buying Treasuries thru Goldman Sachs which is killing CD’s and other money market instruments
So where is money to be made other that commodities?
China is said to be purchasing an aircraft carrier. Carriers aren’t defensive weapons, they are for projecting power. If China starts building a blue water navy the halfwits we elect to office had better start paying attention.
Than
Gold went up $40 an oz today
Over the past year and a half the Chinese have reduced their holdings of US treasuries by nearly 60%.
They still hold more than anyone else, but they have seen trouble coming and reduced their exposure.
The second big problem with a rating downgrade is that the interest rate will have to be raised in order to sell new issue bonds. It won't take too much to get to a point where we can't pay the interest AND meet the rest of the Federal obligations, let alone retire the principal on any bonds. Then we're done.
India has 3 carriers in the works.
They should have 2 afloat shortly
Lord I hope they are decent people. Half of them are commies and a further 1/4 are nuts, but a further 1/4 are like us.
“So - which makes a bigger impact - The Chinese, or Moody’s?”
The bond Vigilantes. They’ll buy our bonds but only at a higher interest rate.
” This may sound naive - but who out there is willing to write a check to the USA for $2 Trillion?”
That’s not naive at all. Some very sharp analysts have already been warning that the amount of money that the US will need to borrow is going to exceed the world’s available savings.
other that commodities?
Good question.
Best to not lose money by standing on the sidelines for now ?
“They still hold more than anyone else, “
Actually they aren’t the largest holder of our bonds, they are something like 5th on the list. Britain and Japan are ahead of them, as are American insurance companies.
I dont know.
I feel like inflation is coming
I wouldn’t worry about India’s carriers. But I’m certain that China does.
China should.
Theirs is crap
“I feel like inflation is coming”
Coming??? What planet are you living on, because it’s already HERE on this one.
Been to grocery lately?
I know
Longer term bonds will get punished when the money printing fails. Stock markets seem high [ which presents the contrary opportunity } with low volume recently.
“Over the past year and a half the Chinese have reduced their holdings of US treasuries by nearly 60%.”
That sounds like QE2. We bought their U.S. treasuries back with printed money. Maybe downgrade came when the Chinese felt the wet ink on the Fed banknotes.
You are correct, I'm tryin' to do the math in my head while going from tab to tab. I'll learn to copy and paste, juxtaposed on Wordpad.
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