Chinese ratings agency threatens US with new debt downgrade

[CHIMO]

Source: The Guardian

The head of China's biggest ratings agency, Dagong Global Credit Rating, is warning that it may downgrade the US's sovereign debt rating again because of Washington's failure to tackle the federal budget deficit.

The remarks by Dagong's chairman, Guan Jianzhong, to be broadcast in an interview with al-Jazeera on Saturday morning, come at the end of another week of deep turmoil for the world economy.

Dagong, which has maintained a pessimistic outlook on US fiscal policy, has been leading the charge to downgrade US debt over the last 12 months, lowering the US rating from AA to A+ a year ago.

The Xinhua news agency issued a commentary that cautioned: "The US government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone."


Read more: http://www.guardian.co.uk/business/2011/nov/12/chins-threatens-us-with-new-debt-downgrade

[PoliticAverse]

1. As long as the Chinese keep buying the bonds we won't be Greece or Italy... n/t

[girl gone mad]

8. We don't need to sell bonds.

The US is a currency issuer.

[bluestateguy]

2. And we can remind them of who buys all of their cheap plastic crap

and slap tariffs (yeah, remember those?) on them in a second.

[sasha031]

3. ...1

:thumbsup:

[Vincardog]

7. ....2

[defendandprotect]

5. The guys in control of this "harvesting of slave labor" are in DC .... !!!

And those millionaires and multi-millionaires in Congress -- now more than 40% of

Congress -- aren't about to slap tariffs on anyone!

[defendandprotect]

4. Worried about Uncle Sam turning into a "dead beat" .... ? Aren't we all -- ???

[DeSwiss]

6. K&R n/t

[Old and In the Way]

9. A lotta Chinese holding US debt aren't going to be happy with this.

And it will make US manufacturing more competitive if this forces the RMB to rise against the dollar.