China's rating agency already has us at a single A+ and they are talking about a downgrade.

[dkf]

http://www.chinadaily.com.cn/cndy/2011-07/13/content_12889286.htm

[nadinbrzezinski]

1. No I am not surprised

this is the beginning. The IMF comment today was a shot across bow.

[dkf]

2. I missed that. I'll have to check it out.

[nadinbrzezinski]

3. Here

http://upload.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x1583180

[dkf]

5. Thanks.

[madrchsod]

4. that would mean the dollars are sinking....

along with china`s biggest customer.....what`s walmart going to do now? make the chinese companies pay their workers nothing?

[nadinbrzezinski]

6. They got a UNION problem in China now

:-)

Nah Vietnam is the next frontier.

[dkf]

7. India is having wage inflation problems.

[nadinbrzezinski]

8. But Vietnam is still stable

so is Bangladesh

[aquart]

10. Bangladesh is expecting to be under water.

Probably best not to make any long term plans for Bangladesh.

[nadinbrzezinski]

11. Oh none of these people thinks long term

they can literally pick up a factory and place it somewhere else FAST.

[LetTimmySmoke]

14. I like how that's referred to as a "problem" in most media.

[dkf]

15. Yeah I was being a little snarky.

They did hike rates today though.

http://online.wsj.com/article/SB10001424052748703786804576138212218225544.html

http://mobile.reuters.com/article/idUSL3E7IR0MC20110727?irpc=932

[Jim Warren]

9. limited choices of investment

So raising the debt limit would be good news for investors, but bad for China, the largest holder of US Treasury securities, he said.

"Although reducing US Treasury holdings seems like a choice, China will have to continue its investment, because, after all, we have very limited choices of investment," Yuan said.

They're fucked either way.

[dkf]

12. If I were them I'd start buying our real estate.

Someone told me they have $3 trillion in surplus funds. Crazy.

[Jim Warren]

13. Farm land perhaps

otherwise RE is a horrible investment right now, in a deflationary spiral.

[LooseWilly]

16. So much for the "victory" of capitalism...

Turns out benevolent authoritarian communism is pulling ahead by a neck... like the turtle and the hare, methinks.

Ironic that the US response to foreign credit raters is: "The US Securities and Exchange Commission denied Dagong's application for Nationally Recognized Statistical Rating Organization (NRSRO) status because it is not able to implement cross-border supervision to the agency."

In other words... if you're not under our "supervision" then we're going to pretend you don't exist... When faced with a new problem, it's always best to respond with a solution that's left over from the '50s. ;)