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China Cuts US Credit Rating To Below Botswana’s

From Bloomberg:

China’s Dagong Cuts U.S. Credit Rating After Debt Limit Raised

Oct 17, 2013

China’s Dagong Global Credit Rating Co. cut its sovereign rating for the U.S. hours after President Barack Obama signed legislation raising the federal debt limit.

"After"? How is that possible? Our media guardians have told us for weeks that the credit rating firms were going to downgrade us if we didn’t raise the debt limit.

Of course, as we have been saying for some time, the truth is the exact opposite. The credit rating firms are only concerned about our debt, especially our debt to GDP ratio. And this debt ceiling deal only made that worse.

Dagong, one of China’s four biggest credit rating companies, downgraded the local and foreign currency credit ratings of the U.S. to A- from A, maintaining a negative outlook, the company said in an e-mailed statement today. That’s below Dagong’s rating of Botswana, which has a A rating, and puts the U.S. on par with Brazil.

“Leaders of nations and institutions have all expressed concern for the situation,” Chinese Foreign Ministry spokeswoman Hua Chunying told a briefing in Beijing today. “The U.S. is the world’s biggest economy, and whether it can resolve the problems matters to its own interest and also the stability and growth of the whole global economy.”

This news is being completely ignored by the rest of the news media because it puts the lie to the claim that the credit rating firms were going to downgrade us if we didn’t raise the debt limit.

And it was is also being ignored because the media have been telling us for weeks that the world markets were going to love us raising the debt limit. So that we can borrow another trillion dollars to pay the interest on the trillions we have already borrowed.

China is the largest foreign holder of U.S. Treasuries and increased its holdings to $1.28 trillion as of July, according to U.S. government figures. Privately owned Dagong rates China’s foreign currency debt AAA.

Nothing in China is truly privately owned. Dagong would not have done this without the government’s blessing.

Dagong’s move came hours after the U.S. Congress voted to fund the government and lift the debt limit, ending a shutdown that began Oct. 1 and took $24 billion out of the economy. Obama signed the bill just after midnight…

But why should we worry about what China thinks of our credit rating? They are just the biggest holder of our debt and practically the only country left who will let us borrow any money.

But remember how the new media warned us that a lower credit rating would make borrowing money just that much more expensive? Well, guess what. Borrowing money just got a lot more expensive.

This article was posted by Steve on Thursday, October 17th, 2013. Comments are currently closed.

3 Responses to “China Cuts US Credit Rating To Below Botswana’s”

  1. Astravogel says:

    Consider if China stops buying our worthless securities,
    could that be a bad thing?

  2. canary says:

    The US is upset because US Troops, Drones, tanks, etc. helping Turkey on their border, are planning on buying a huge defensive missile system from a Chinese company that is under US sanctions. Turkey just can’t pass up the small 3 billion dollar price tag China is giving them, because China’s prices are cheap. What choice does China have when the US is bankrupt and their potus keeps making defensive and military cuts weakening the poor US.
    When the US isn’t taking care of those grand National Parks used as collateral for loans, well…
    money talks.

  3. GetBackJack says:

    It will be a great day when our infrastructure get all the money it needs
    and the Chinese air force has to hold a bake sale to buy a bomber.

    Because they quit riding our paper to a false economy .. so, go ahead. Quit buying our paper. I dare you. I double dog dare you.

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