At this point, I think indications lean towards S&P's credibility.
China is still building empty cities. Wonder what those bonds are rated.
“China is still building empty cities.”
China has much bigger overall structural problems than we have, but we can’t afford to spend much more time trying to emulate failed European socialism or we will be very vulnerable.
China has tons of poverty and horrible human rights violations, but they have even more central control over information than liberals in our government have over our complacent liberal media. They can suppress knowledge of their internal problems for the time being, but eventually things will unwind. Name a recent invention that has come out of China that has made a major impact on the world. Give me an example of recent Chinese innovation. I’m only worried about China if we continue to commit national suicide.
Rating agencies were getting a bad rap (due in part to that real estate bubble that they failed to predict and the hand wringing about a default that didn’t have a chance of happening) only a week or two ago.
Standard and Poors isn’t the only game in town, too. What was Moody’s last pronouncement, can’t remember.