US Has Already Defaulted, Says Chinese Rating Agency

[dkf]

Dagong Global Credit Rating Co. Ltd., the bomb-tossing Chinese rating agency, is at it again. Apparently while everybody in the bond market was distracted by Weinergate or something, the US government defaulted on its debt!

That’s what Dagong — who last month downgraded the UK and has already cut the US credit rating twice in the past year – said this morning, anyway.

“In our opinion, the United States has already been defaulting,” Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., the only Chinese agency that gives sovereign ratings, was quoted by the Global Times saying.

Washington had already defaulted on its loans by allowing the dollar to weaken against other currencies — eroding the wealth of creditors including China, Guan said.

All righty then, so why haven’t you cut the country’s credit rating to junk?

http://blogs.wsj.com/marketbeat/2011/06/10/us-has-already-defaulted-says-chinese-rating-agency/

[MadHound]

1. Sucks when you peg your currency to the dollar,

And then loan us a bunch of dollars. Go ahead, downgrade, we go down, we'll take you down with us. Teach you to play fucking currency games.

[leveymg]

2. They should talk to the Japanese. Ask them about Jim Baker and the '85 "Plaza Accord."

Not sure we could again force our main creditors to accept involuntary devaluation of the Dollar against their currency, but we sure as shit are trying.

[femrap]

3. This is up over

at Zero Hedge. Quite a read about China's rise to global leader.

http://www.zerohedge.com/contributed/how-china-ate-americas-lunch

Our own rich, white dudes sold us out. They should be tried for treason.

China owns us....