Posted on 08/07/2011 9:08:35 AM PDT by barmag25
The man who leads one of China’s top rating agencies says the greenback’s status as the world’s reserve currency is set to wane as the world’s most powerful policy makers convene to examine the implication of S&P’s decision to strip the United States of its triple “A” rating.
In comments emailed to CNBC, Guan Jianzhong, chairman of Dagong Global Credit Rating, said the currency is “gradually discarded by the world,” and the “process will be irreversible.”
Dagong made headlines last week when it became the first rating agency to cut its U.S. credit rating from “A+” to “A” after policymakers in Washington failed to act in a timely manner to lift its debt celing.
However, the announcement failed to register in the markets as investors have yet to decide whether to take the Beijing-based company seriously.
(Excerpt) Read more at cnbc.com ...
All propaganda. Look at what China companies are doing with us... look at their capitalistic side...not the political side...
The US has the most voting rights in both the IMF and the World Bank and this has remained constant from US president to US president (both Republican and Democrat). So I am not buying the “Fabian Socialist” story.
If you study IMF policies, you’ll understand that they are quite far from “Fabian Socialism”. IMF policy has more to do with Friedman than Keynes. Ask any Latin American finance minister and he’d tell you that the IMF insists on deregulation of the economy, market driven exchange rates and lowering of trade barriers. That was the basis of the famous “Washington Consensus” and the main political proponents of that consensus were Thatcher and Reagan.
Please study the IMF response to the Asian economic crisis of the late nineties. The prescription was the same deregulation and market driven exchange rates. The result was a run on local currencies like the Thai baht and economic disaster. Predictably, Asian governments junked IMF advice and accumulated vast reserves of foreign currencies (primarily dollars) to ensure that such events never occur again.
Why do you think the US insisted that the British and French dissolve their empires? The British and French empires had elaborate tariff structures that prevented the Americans from selling their goods to wide swathes of the World’s population.
Free trade was good when America benefited from it.
Fifty years after going around the World preaching the virtues of “Free Trade”, you cannot simply pull the plug, retreat into a shell and expect to thrive. It just won’t work.
Looks like Fox New’s 9 years is correct.
http://business.asiaone.com/Business/News/Story/A1Story20110806-293018.html
Standard & Poor’s took away Canada’s AAA rating on debt denominated in foreign currencies in 1992.
But Ottawa recovered the grade in 2002 after reducing government spending as a fraction of GDP by more than eight per cent, through a series of stringent spending cuts. (Canada’s sovereign debt as denominated in Canadian dollars was never downgraded.)
Cokie Roberts on Downgrade: 'The Problem That We Have Here Is the Constitution'
Cokie Roberts is a buffoon.
Yes but how many idiotic non political junkie Americans watch her and think she is a non biased, professional; therefore they accept her opinion as fact and accurate news?
2012 will be here soon enough and we will take our country back and restore its fiscal sanity.
Thank you for providing the info, very insightful!
“..will come in to steal what we have.”
They’ll tear down all our worthless windmills and mine the coal and drill the oil American refuse to. Ha, doing the job Americans refuse to do.
Their growing middle class is because they’re the world’s factory, is it not? When they have no one to sell their junk to, then what?
This is such a lie!
S&P wasn't worried about us not lifting the debt ceiling - they said they were worried about the spending and how much debt we are accumulating but never paying off.
My new tag line. Thanks.
Obama did a good job . He buried us and drunken Boner held the shovel!
:)
china also wants the US to cut miliary spending....
this is self serving BS.
Just like the last 100 years of S and P.
regardless of our mess, s and p should be examined for their demand that policians obey THEM and not the voters.
>> francis fukuyama says one extended family controls china;
>> we know we can’t trust them.
Didin’t Francis Fukuyama claim in the 90’s that civilization has ended in a liberal democracy?
So much for being right.
Well, you’re pretty much just wrong. Sorry.
Prove me wrong.
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