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View Full Version : China further lowers US credit rating



ktlight
4th August 2011, 07:42
FYI:

China's top ratings agency has once again downgraded the United States' credit rating, casting doubt on whether the US federal government is capable of paying its debt in the long term.


The Chinese agency, Dagong Global Credit Rating Company, lowered the US credit ratings from A+ to A on Wednesday, Xinhua reported.

"The squabbling between the two [American] political parties on raising the US debt ceiling reflected an irreversible trend on the United States' declining ability to repay its debts," the chairman of the Chinese credit ratings agency, Guan Jianzhong, said.

"The two parties acted in a very irresponsible way and their actions greatly exposed the negative impact of the US political system on its economic fundamentals," he added.

Infighting in the US Congress over raising the country's debt limit dragged on until Tuesday and within hours of the country's defaulting on its USD 14.3 trillion debt.

Dagong had earlier downgraded the US ratings from AAA to A+ in November after the US Federal Reserve loosened its monetary policy.

Officials in Beijing say a failure by Washington to control its massive debt could put the lives of millions of families within and beyond the US borders in danger.


source
http://www.presstv.ir/detail/192225.html

Lord Sidious
4th August 2011, 07:46
Excellent.
Notice how the ''squabbling'' makes this worse?
The more you squirm, the faster you sink.
Love it.

phillipbbg
4th August 2011, 07:46
Ah just love this, now the shoe is being tried for size on the other foot..... all the credit agencies of the West are hooked into the PTB and now China is playing there game against them.... just love it.
What goes around comes around.... Now we may get some real changes in our little lives. Good or bad it has to come before we can move on....

phillipbbg
4th August 2011, 08:02
Just listening to the news and now Renaldo (football player) is given a AAA rating by the ratings agencies after a Spanish bank used the loan they gave to his club for 70+ million Euro's as security on an injection of funds into the bank.....

Just goes to show you how out of touch the entire system has become when a football player can have a better credit rating than many countries.... by the way this is not the individual but his BRAND as such... So if I go and lend him 200 mill I can then use my debt liability as an asset to borrow more money for other things I may need .......
This debt / credit rating biz is getting stranger every day....
:jaw:

Lord Sidious
4th August 2011, 08:36
Just listening to the news and now Renaldo (football player) is given a AAA rating by the ratings agencies after a Spanish bank used the loan they gave to his club for 70+ million Euro's as security on an injection of funds into the bank.....

Just goes to show you how out of touch the entire system has become when a football player can have a better credit rating than many countries.... by the way this is not the individual but his BRAND as such... So if I go and lend him 200 mill I can then use my debt liability as an asset to borrow more money for other things I may need .......
This debt / credit rating biz is getting stranger every day....
:jaw:

You need to read up on the fractional reserve banking system.
That loan is considered to be an asset on the books of the bank.
They can leverage the assets out as loans.
In australia the number allowed is 14.
So that means 14 times your assets out in loans.

phillipbbg
4th August 2011, 09:10
Just listening to the news and now Renaldo (football player) is given a AAA rating by the ratings agencies after a Spanish bank used the loan they gave to his club for 70+ million Euro's as security on an injection of funds into the bank.....

Just goes to show you how out of touch the entire system has become when a football player can have a better credit rating than many countries.... by the way this is not the individual but his BRAND as such... So if I go and lend him 200 mill I can then use my debt liability as an asset to borrow more money for other things I may need .......
This debt / credit rating biz is getting stranger every day....
:jaw:

You need to read up on the fractional reserve banking system.
That loan is considered to be an asset on the books of the bank.
They can leverage the assets out as loans.
In australia the number allowed is 14.
So that means 14 times your assets out in loans.

I left Oz 6 years ago am heading back soon...looks like they have got the same debt virus the rest of the world has.....

We must be getting close to the tipping point...... UNBELIEVABLE