China ratings house says US defaulting: report

[Pale Blue Dot]

Source: Yahoo News

A Chinese ratings house has accused the United States of defaulting on its massive debt, state media said Friday, a day after Beijing urged Washington to put its fiscal house in order.

"In our opinion, the United States has already been defaulting," Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., the only Chinese agency that gives sovereign ratings, was quoted by the Global Times saying.

Washington had already defaulted on its loans by allowing the dollar to weaken against other currencies -- eroding the wealth of creditors including China, Guan said.

Guan did not immediately respond to AFP requests for comment.

The US government will run out of room to spend more on August 2 unless Congress bumps up the borrowing limit beyond $14.29 trillion -- but Republicans are refusing to support such a move until a deficit cutting deal is reached.

Read more: http://ca.news.yahoo.com/china-ratings-house-says-us-defaulting-report-054309883.html

[OhioChick]

1. K&R n/t

[Vidar]

2. K&R.

[cstanleytech]

3. A chinese rating house?

I'll be more concerned personally when its a more truthworthy credit rating service.

[Badsam]

6. Because Standard $ Poor's is so legit?

[cstanleytech]

7. Reread what I said please

and then assuming you get what I meant have a good laugh because I still am :)

[liberation]

10. That is why the good lord created the "sarcasm" tag

if that is the angle you were going for.

It is still hard to decode your joke...

[cstanleytech]

13. Noted

and my apologies as I thought it was obvious what I meant but never fear in future I will endeavor to use said tag so as to avoid any confusion.

[liberation]

14. Unfortunately, with the written word is hard to infer certain undertones

that come far more directly when said jokes are heard / viewed.

It happens to me all the time ;-) So I learned my lesson the hard way.

[cstanleytech]

21. True True

though at the time I thought it was obvious I meant it as an oxymoron much like "military intelligence" or "honest politician" *grin*

[valerief]

4. Will China go to war against rethugs in the House of Representatives? One can only hope. nt

[bahrbearian]

8. Citizens United might work against the repuks.. lol

[lumberjack_jeff]

16. War isn't that selective. n/t

[valerief]

18. It only takes one big bomb. Or big airplane. Of course, I really wouldn't want

to see all of Congress annihilated.

[Hubert Flottz]

5. Rich people need to pay their taxes back to 2000...

Wars aren't cheap.

[madrchsod]

9. poor china... it hitched itself to a falling star....

not much they can do to soften the landing

[liberation]

11. Right, keep telling yourself that.

China is literally carrying out a set of policies regarding the US, which mirror the IMF's actions in Asia in the late 90s.

The thing is that most Americans have the historical (never mind when it comes to international issues) memory of a gnat. Which is why the Chinese have played the American leadership like a fiddle.

[plumbob]

17. They'll be purchasing hard assets here, because the $ is shit outside the country.

But here, it can be used at nominal values.

Factories, real estate, whatever. They get assets. We get cheap plastic shit. Nobody held a gun to OUR heads.

[Javaman]

12. Meh, until china gives the real worth of their currency, this is just postering.

It's been long known that the yuan has been grossly over valued.

[lumberjack_jeff]

15. "Hi, China? This is the US GOP. Can we borrow some money?"

"Maybe. What for?"
"Guns. Guns, bombs and warships."
"Okay, why do you think you need more guns, bombs and warships?"
"To protect ourselves when our creditors come looking for repayment."

[muriel_volestrangler]

19. So China wants the return of a fixed exchange rate?

This is rubbish - if the dollar weakens, it does not mean they are defaulting. US government loans are overwhelmingly (exclusively?) in dollars, and so the exchange rate means nothing in terms of a default. The govt borrowed the money in dollars, pays the interest in dollars, and will repay it in dollars. Exchange rates are other countries' worries.

[lib2DaBone]

20. Maybe we should stop letting China dump all their crap on our shores for free?

Oh wait.. I really love that rotten-egg drywall. And my pet LOVES that dog food with poison in it. And my kids can't get enough of those toys with lead paint. Toothpaste is always better with anti-freeze in it.

Wait.. what do you mean our Congress is still shipping jobs to China.. wa.wait.. that can't be? I thought there was a job crisis in the USA?