China Official: It's Too Late, U.S. Already 'Defaulting'

[Steelplate]

I wouldn't put any weight whatsoever in what a single Chinese official says publicly or even privately.
We can never forget that it is US that has put them in a great position.
We can destroy the tremendous global threat China is - by simply stopping buying their cheap shit by the cart full.

Better yet. Close shop and bring our jobs back home and put our good people back to work, instead of taking jobs away and demonizing them as deadbeats.

 

[Steelplate]

"Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., reportedly told state media that the United States has already defaulted by letting the U.S. dollar weaken. "

This should be front page material. This is an affirmation of everything Ron Paul has been saying for over a decade.

Why? Exactly?

China's been playing currency games for a very long time.

Now they are complaining about a "weak" dollar?

That's hilarious.

Yeah... it kind of fucks with their whole rigged monetary system, doesn't it?

 

[editec]

As lawmakers scramble to cut a budget deal and avoid defaulting on U.S. debt, the head of a top Chinese rating agency claims it's too late.

Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., reportedly told state media that the United States has already defaulted by letting the U.S. dollar weaken.

"In our opinion, the United States has already been defaulting," Guan was quoted as saying, according to AFP.

China, likewise, has long come under criticism for allowing its currency to weaken. But while Dagong Global is known for being tough on the U.S., Guan's words carry extra sting as they follow warnings from three top rating agencies about U.S. finances.

Fitch is the latest to warn the U.S. that its sterling credit rating could be at risk if it fails to raise its $14.3 trillion debt ceiling or fails to rein in its long-term deficits.

Moody's and Standard & Poor's have already issued similar warnings.


Read more: China Official: It's Too Late, U.S. Already 'Defaulting' - FoxNews.com

They have a point, I suppose.

 

[CountofTuscany]

Maybe we need to take a close look at Romney and maybe he should invite Trump along to help.. I'd vote for them.

I'd vote for Romney.

 

[Kevin_Kennedy]

"Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., reportedly told state media that the United States has already defaulted by letting the U.S. dollar weaken. "

This should be front page material. This is an affirmation of everything Ron Paul has been saying for over a decade.

Why? Exactly?

China's been playing currency games for a very long time.

Now they are complaining about a "weak" dollar?

That's hilarious.

They haven't played any currency games the Federal Reserve hasn't been playing. It's hypocritical for the U.S. or China to complain about the other manipulating their currency.

 

[JimH52]

China is calling the kettle black. Obama and Congress will come up with a short term fix, while they nail down a real reduction in budget and long term deficit. No one, including the Chinese can afford for us to default.

 

[Kuros]

Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., reportedly told state media that the United States has already defaulted by letting the U.S. dollar weaken.

"In our opinion, the United States has already been defaulting," Guan was quoted as saying, according to AFP.

The US is defaulting, because it is weakening its currency?

Okay, so then the opposite may also be true: if the US strengthens its currency, that will constitute a payment of its debts.

This kind of nonsense passes for logic among Communists.

 

[Kevin_Kennedy]

Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., reportedly told state media that the United States has already defaulted by letting the U.S. dollar weaken.

"In our opinion, the United States has already been defaulting," Guan was quoted as saying, according to AFP.

The US is defaulting, because it is weakening its currency?

Okay, so then the opposite may also be true: if the US strengthens its currency, that will constitute a payment of its debts.

This kind of nonsense passes for logic among Communists.

If you're loaned money then seek to pay that money back with depreciated money then you are defaulting. You're paying back the monetary amount that you owe, but you're doing so with money that isn't as valuable as it was when you borrowed it.

 

[Kuros]

Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., reportedly told state media that the United States has already defaulted by letting the U.S. dollar weaken.

"In our opinion, the United States has already been defaulting," Guan was quoted as saying, according to AFP.

The US is defaulting, because it is weakening its currency?

Okay, so then the opposite may also be true: if the US strengthens its currency, that will constitute a payment of its debts.

This kind of nonsense passes for logic among Communists.

If you're loaned money then seek to pay that money back with depreciated money then you are defaulting. You're paying back the monetary amount that you owe, but you're doing so with money that isn't as valuable as it was when you borrowed it.

I'll tell you what, if you can find a legal opinion to that effect in any common law jurisdiction, then I'll gladly start to consider the idea seriously.

But if a debtor owes $1,000,000 on a contract, it is the creditor who takes the risk of currency devaluation.

Currency Risk

 

[Kevin_Kennedy]

The US is defaulting, because it is weakening its currency?

Okay, so then the opposite may also be true: if the US strengthens its currency, that will constitute a payment of its debts.

This kind of nonsense passes for logic among Communists.

If you're loaned money then seek to pay that money back with depreciated money then you are defaulting. You're paying back the monetary amount that you owe, but you're doing so with money that isn't as valuable as it was when you borrowed it.

I'll tell you what, if you can find a legal opinion to that effect in any common law jurisdiction, then I'll gladly start to consider the idea seriously.

But if a debtor owes $1,000,000 on a contract, it is the creditor who takes the risk of currency devaluation.

Currency Risk

So then you would agree that the U.S. has no more right to complain about China's currency than China has to complain about the U.S. dollar?

 

[Avatar4321]

At this point, the question may be no longer about IF we default, but WHEN we default.

if we don't make serious attempts at fixing it soon, we will be there.

 

[Avatar4321]

can i have a show of laissez-faire capitalist hands here please.....

What does Laissez-Faire Capitalism have to do with common sense budgeting?

 

[Kuros]

If you're loaned money then seek to pay that money back with depreciated money then you are defaulting. You're paying back the monetary amount that you owe, but you're doing so with money that isn't as valuable as it was when you borrowed it.

I'll tell you what, if you can find a legal opinion to that effect in any common law jurisdiction, then I'll gladly start to consider the idea seriously.

But if a debtor owes $1,000,000 on a contract, it is the creditor who takes the risk of currency devaluation.

Currency Risk

So then you would agree that the U.S. has no more right to complain about China's currency than China has to complain about the U.S. dollar?

What? No . . .

Listen, currency manipulation is not debt default, okay? A debt default would be if the US has failed to repay the Chinese state the money the US has borrowed. The US has undeniably not defaulted.

Meanwhile, the US has also undeniably inflated the money supply and weakened its currency through Fed Reserve injections. I'm not blasting the Chinese for currency manipulation. It would be hypocritical, no? But calling currency manipulation a per se default is just senseless hyperbole.

 

[Avatar4321]

Maybe we need to take a close look at Romney and maybe he should invite Trump along to help.. I'd vote for them.

Maybe your side needs to stop playing games with our country and it's people for the benefit of the wealthy few.... that would be a real, REAL good place to start.

Worry about 2012 when it gets here.

Maybe you should stop trying to take other peoples money and focus on fixing the country than hate your obsession with the "wealthy"

 

[Kevin_Kennedy]

I'll tell you what, if you can find a legal opinion to that effect in any common law jurisdiction, then I'll gladly start to consider the idea seriously.

But if a debtor owes $1,000,000 on a contract, it is the creditor who takes the risk of currency devaluation.

Currency Risk

So then you would agree that the U.S. has no more right to complain about China's currency than China has to complain about the U.S. dollar?

What? No . . .

Listen, currency manipulation is not debt default, okay? A debt default would be if the US has failed to repay the Chinese state the money the US has borrowed. The US has undeniably not defaulted.

Meanwhile, the US has also undeniably inflated the money supply and weakened its currency through Fed Reserve injections. I'm not blasting the Chinese for currency manipulation. It would be hypocritical, no? But calling currency manipulation a per se default is just senseless hyperbole.

It's default because you're not paying them back the same value that you borrowed, which is pretty much the definition of default.

 

[hortysir]

I wouldn't put any weight whatsoever in what a single Chinese official says publicly or even privately.

Missed this part, huh??

vvvvvvvvvvvvvvvvvvvvvvvvvvvvv

Moody's and Standard & Poor's have already issued similar warnings.

 

[mike beev]

I am sick and tired of hearing anything about what the Chinese think! If they don't like our greenbacks, they can put a limit on what they sell us to match what they buy from us. That way the trade balance is equal.

By the way, why are we doing business with a Communist country that suppresses political descent, forces women to have abortions after having one child, persecutes Christians, and seems intent in creating a new empire?

 

[Kevin_Kennedy]

I am sick and tired of hearing anything about what the Chinese think! If they don't like our greenbacks, they can put a limit on what they sell us to match what they buy from us. That way the trade balance is equal.

By the way, why are we doing business with a Communist country that suppresses political descent, forces women to have abortions after having one child, persecutes Christians, and seems intent in creating a new empire?

How are they intent on creating a new empire? They focus on trade and commerce rather than military interventionism around the world.

 

[Flagwavrusa]

I wouldn't put any weight whatsoever in what a single Chinese official says publicly or even privately.
We can never forget that it is US that has put them in a great position.
We can destroy the tremendous global threat China is - by simply stopping buying their cheap shit by the cart full.

You do know that we are approx. 1 trillion in debt to them as we continue to go broke. And there are other emerging global markets they can sell to.
But if you think we are still that 'exceptional', have at it.

We don't owe the Chinese a thing. They pay their workers slave labor wages and manipulate their currency to keep prices of their goods artificially low, thus robbing America of tens of millions of jobs, then sell products they stole from American patent offices back to unsuspecting Americans at below cost, and use the revenue to buy American bonds so they can try to hold our government hostage without firing a shot. I say, if they want "their" money back, fire up the printing presses and send them a boatload of paper. Then they'll be able to finally pay us back for dragging them out of the sewer of communism by using those dollars to buy American goods and put Americans back to work. Call it Stimulus 2.

 

[B. Kidd]

I wouldn't put any weight whatsoever in what a single Chinese official says publicly or even privately.
We can never forget that it is US that has put them in a great position.
We can destroy the tremendous global threat China is - by simply stopping buying their cheap shit by the cart full.

You do know that we are approx. 1 trillion in debt to them as we continue to go broke. And there are other emerging global markets they can sell to.
But if you think we are still that 'exceptional', have at it.

We don't owe the Chinese a thing. They pay their workers slave labor wages and manipulate their currency to keep prices of their goods artificially low, thus robbing America of tens of millions of jobs, then sell products they stole from American patent offices back to unsuspecting Americans at below cost, and use the revenue to buy American bonds so they can try to hold our government hostage without firing a shot. I say, if they want "their" money back, fire up the printing presses and send them a boatload of paper. Then they'll be able to finally pay us back for dragging them out of the sewer of communism by using those dollars to buy American goods and put Americans back to work. Call it Stimulus 2.

How is that projected and expected growing consumer demand by the Chinese for American goods working out for us as related to current American job creation and eventually being a driving force towards helping our economy and the Europeans?
It isn't happening!
Why? You answered it in your own post. By paying slave wages, they stifle consumer demand for imports. It is not growing as fast and as much as expected.
Still, it does not change the fact that we owe them a trill with interest.
Yet, a few American multinationals are poised to benefit from the consumer demand that is slowly emerging there. But just a few, and it is slowly emerging.

How to Profit From the Coming Boom in Chinese Consumer Demand