U.S. Stripped of AAA Credit Rating

This is one that belongs completely to Obama.

Bullshit...

Ya cause his intent to double the deficit since he took over has NOTHING at all to do with it right? You are a fucking dumb fuck. RIGHT this minute Obama approved for this year a Budget that had 50 cents of EVERY single dollar spent borrowed and INTENDS to spend EVEN MORE next year.

You are not even an American so fucking take your ignorance and peddle it in NZ.

Hey, I'm not an American and I know more about the US budget and the bond market than virtually every American here.

And as someone who has spent nearly 20 years working in capital markets, I can safely say that to blame Obama solely for this is absolute and complete partisan bullshit.
 
This is one that belongs completely to Obama.

Bullshit...

Ya cause his intent to double the deficit since he took over has NOTHING at all to do with it right? You are a fucking dumb fuck. RIGHT this minute Obama approved for this year a Budget that had 50 cents of EVERY single dollar spent borrowed and INTENDS to spend EVEN MORE next year.

You are not even an American so fucking take your ignorance and peddle it in NZ.

Being a partisan hack, you're not looking into why he borrowed.

Hey, my country isn't the one whereby the Chinese own our arse. What's that about ignorance again?

See Toro's previous post....have it out with him...I dare ya....
 
Chinese agency cuts U.S. sovereign rating again
China’s credit-rating agency on Tuesday downgraded its rating for U.S. sovereign debt and warned of further cuts, in a pointed move ahead of this week’s Group of 20 major economies meeting.

Dagong Global Credit Rating Co. Ltd., the only wholly Chinese-owed rating agency, cut its rating on U.S. debt to A from AA, citing the Federal Reserve’s move last week to initiate another round of asset buying, worth $600 billion. It also placed the U.S. sovereign credit rating on negative watch.

Reuters - China ratings agency downgrades U.S. after Fed move
Chinese credit ratings agency downgraded the United States' sovereign credit rating on Tuesday, citing the Federal Reserve's controversial move last week to pump more dollars into the U.S. economy.

As Beijing and Washington locked horns on economic policy ahead of a Group of 20 leaders summit this week, the Dagong Global Credit Rating Co. Ltd cut the U.S. local and foreign currency long-term sovereign credit rating to A-plus from AA.

The ratings agency, which warned it might cut the U.S. ratings further, said its move reflected the United States' "deteriorating debt repayment capability and drastic decline of the government's intention of debt repayment."

Tensions over economic policies between the United States and China have been revived by the U.S. central bank's decision last week to pump an extra $600 billion into the country's struggling economy which has further weakened the U.S. dollar.
 
Standard & Poor's, and Moody's lost all credibility for faking credit ratings on the junk mortgage instruments. to be fair I do not know about Fitch's involvement in that fiasco.
 
This is clearly China's response to QEII and pressure by G20 nations to balance current accounts.

When you owe the bank $5000 and can't pay, you are in trouble. When you owe the bank $5M and can't pay, the bank is in trouble.

China is in trouble.

China buys our bonds because they have to, not because they like us. And they have to and they know it. We have China by the balls.

But this won't last forever folks. We are definitely not heading in the right direction.
 
China is getting to the point where they can exist far better without us than we can without them.
After all their people are used to some hardships.
We are spoiled fat and lazy.

You try and tell Americans all they can have to eat for the next year is rice and beans.
 
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How is the Federal Reserve pumping the system with new currency and pushing China over the edge a symptom of the US being "spoiled fat and lazy?"

Unn I was not saying that, but come to think of it it is.
We are overspending wastefully and pushing that debt and devalued money onto China.
WE could cut spending by 75% and still have a better standard of living than most Chinese.

Thanks for bringing that angle up, I had not thought of it.
 
China is getting to the point where they can exist far better without us than we can without them.
After all their people are used to some hardships.
We are spoiled fat and lazy.

You try and tell Americans all they can have to eat for the next year is rice and beans.

They are not getting to that point this year.

Chinese leadership is scared shitless that if they break the peg inflation will rip their society apart. They are very, very fragile today.

But you are clearly right over the long term like 1-10 years from now. If they get big enough to where they actually do not need us they are gonna feed us to their pets.
 
Meh

I wouldn't put much stock in it.

There is a theory floating around out there that this is a precursor to the Chinese revaluing the yuan. The Chinese cannot revalue as long as Americans are lecturing the Chinese to do so. However, if they can argue to their people that a bond rating agency is saying that investors should be worried about their investment in US bonds, then they can revalue the yuan, since the loosening the peg will mean buying less US bonds.
 
How is the Federal Reserve pumping the system with new currency and pushing China over the edge a symptom of the US being "spoiled fat and lazy?"

Unn I was not saying that, but come to think of it it is.
We are overspending wastefully and pushing that debt and devalued money onto China.
WE could cut spending by 75% and still have a better standard of living than most Chinese.

Thanks for bringing that angle up, I had not thought of it.


China needs our bonds more than we need them buying our debt today. But I don't think this will last long.

THis is the real reason why Obama is in India this week, to support India as a dominating rival to China. The west would far rather be beholden to India than to China.
 
Meh

I wouldn't put much stock in it.

There is a theory floating around out there that this is a precursor to the Chinese revaluing the yuan. The Chinese cannot revalue as long as Americans are lecturing the Chinese to do so. However, if they can argue to their people that a bond rating agency is saying that investors should be worried about their investment in US bonds, then they can revalue the yuan, since the loosening the peg will mean buying less US bonds.

I bet that you would not wager on that theory being true tho.
 
How is the Federal Reserve pumping the system with new currency and pushing China over the edge a symptom of the US being "spoiled fat and lazy?"

Unn I was not saying that, but come to think of it it is.
We are overspending wastefully and pushing that debt and devalued money onto China.
WE could cut spending by 75% and still have a better standard of living than most Chinese.

Thanks for bringing that angle up, I had not thought of it.


China needs our bonds more than we need them buying our debt today. But I don't think this will last long.

THis is the real reason why Obama is in India this week, to support India as a dominating rival to China. The west would far rather be beholden to India than to China.

so we multiply the problem times 2 to fix things?
:dig:

Damn all the more of the same fools straight to hell.
 
Unn I was not saying that, but come to think of it it is.
We are overspending wastefully and pushing that debt and devalued money onto China.
WE could cut spending by 75% and still have a better standard of living than most Chinese.

Thanks for bringing that angle up, I had not thought of it.


China needs our bonds more than we need them buying our debt today. But I don't think this will last long.

THis is the real reason why Obama is in India this week, to support India as a dominating rival to China. The west would far rather be beholden to India than to China.

so we multiply the problem times 2 to fix things?
:dig:

YEAH! because if India shares the power and the wealth China won't hold all the cards and lord over us like monarchs.

Trust me on this, most of the western leaders are far more interested in India being the manufacturing and technology giant of the future than in China being the world's dominant super power.

China will be a brutal superpower whereas Indians won't kill insects or cows for religious reasons.
 
China needs our bonds more than we need them buying our debt today. But I don't think this will last long.

THis is the real reason why Obama is in India this week, to support India as a dominating rival to China. The west would far rather be beholden to India than to China.

so we multiply the problem times 2 to fix things?
:dig:

YEAH! because if India shares the power and the wealth China won't hold all the cards and lord over us like monarchs.

Trust me on this, most of the western leaders are far more interested in India being the manufacturing and technology giant of the future than in China being the world's dominant super power.

China will be a brutal superpower whereas Indians won't kill insects or cows for religious reasons.

I understand what you are saying, but it does little or nothing to help us improve our economic situation.
You are looking at it from a world perspective. I am a bit more self centered on the USA.
 
so we multiply the problem times 2 to fix things?
:dig:

YEAH! because if India shares the power and the wealth China won't hold all the cards and lord over us like monarchs.

Trust me on this, most of the western leaders are far more interested in India being the manufacturing and technology giant of the future than in China being the world's dominant super power.

China will be a brutal superpower whereas Indians won't kill insects or cows for religious reasons.

I understand what you are saying, but it does little or nothing to help us improve our economic situation.
You are looking at it from a world perspective. I am a bit more self centered on the USA.

apparently our leaders not only don't give a shit about our world position but are voluntarily weakening us and strengthening our rivals.

That's globalization and I can't figure out WTF our leaders don't oppose it and why Americans are not up in arms over it.:cuckoo::cuckoo::cuckoo::cuckoo::cuckoo:
 
YEAH! because if India shares the power and the wealth China won't hold all the cards and lord over us like monarchs.

Trust me on this, most of the western leaders are far more interested in India being the manufacturing and technology giant of the future than in China being the world's dominant super power.

China will be a brutal superpower whereas Indians won't kill insects or cows for religious reasons.

I understand what you are saying, but it does little or nothing to help us improve our economic situation.
You are looking at it from a world perspective. I am a bit more self centered on the USA.

apparently our leaders not only don't give a shit about our world position but are voluntarily weakening us and strengthening our rivals.

That's globalization and I can't figure out WTF our leaders don't oppose it and why Americans are not up in arms over it.:cuckoo::cuckoo::cuckoo::cuckoo::cuckoo:

Because we are led by the corporate funded media?
 
You think our leaders are fooled by media? Maybe they are fooled by lobbyists, but they must be smart enough to realize that they are selling us down the river as a nation.

I can hardly believe what has occurred in the last 10 years. All the really, really dire threats are being ignored while the nation crumbles and the threats that people worry about are almost all meaningless.

How could we be so stupid?
 
China’s inflation accelerated to the fastest pace in two years in October, building the case for the central bank to add to last month’s interest-rate increase.

Consumer prices rose 4.4 percent from a year earlier, boosted by food costs, a statistics bureau report showed in Beijing today. That was more than the 4 percent median forecast in a Bloomberg News survey of 28 economists. None forecast such a large gain. In September, prices rose 3.6 percent.

Moody’s Investors Service today upgraded China’s debt rating to Aa3 from A1 in a sign of confidence that policy makers can contain risks and sustain the fastest expansion of any major economy. Deutsche Bank AG said policy makers will be “more aggressive” in raising interest rates after yesterday’s 0.5 percentage point increase in the proportion of deposits that banks must set aside.

China's Inflation Accelerates to 4.4%, Fastest Pace in Two Years - Bloomberg
 
Meh

I wouldn't put much stock in it.

There is a theory floating around out there that this is a precursor to the Chinese revaluing the yuan. The Chinese cannot revalue as long as Americans are lecturing the Chinese to do so. However, if they can argue to their people that a bond rating agency is saying that investors should be worried about their investment in US bonds, then they can revalue the yuan, since the loosening the peg will mean buying less US bonds.

I bet that you would not wager on that theory being true tho.
He might not but I would. If Chinese investors cannot buy US securities and real estate at something close to purchasing price parity China will in all probability explode soon. The Chinese real estate bubble or the Chinese state will end soon.
 

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