Dagong It - China Has Threatened to Lower Us Debt Rating without a Near Term Debt Limit Deal
Well so far we have warnings from various rating agencies that if the Congress and the Obama Administration do not come to terms for a Debt Limit Deal soon, that the United States debt rating will fall off a cliff into the abyss.
We've read about Standard & Poor's warning and Moody's too, and now even China's credit rating agency is warning the US to get a deal done.
Have you ever heard of Dagong Credit Rating Agency in China? Me either, until now that is.
Well, "Dagong it Anyway," I say! Meanwhile, Bill Gross, Jim Rogers, and all the other detractors in the know are saying the same thing.
President Obama noted the need to expedite the talks to reach a solution 'very soon' as our foreign trading partners are getting spooked, and that is not good for the stability of global markets.
True, enough, likewise it isn't good to continue to spend the US into oblivion on social programs either, as our middle class is holding up the whole world right now, and higher taxes, high unemployment, and continued increase of the debt is definitely one cliff we need not attempt to jump.
There was an interesting article recently in TerraDaily Online titled; "China ratings agency issues warning on US debt" by the by Staff Writers in Beijing (AFP), published on July 14, 2011 "Chinese credit rating agency Dagong said it had put US sovereign debt on negative watch for a possible downgrade, following a similar move by Moody's the previous day.
Dagong said the ability of the US to repay debt was likely to decline given its economic growth was expected to slow & fiscal deficits to remain high in the next couple of years.
Dagong will downgrade the US sovereign ratings if there is no substantive improvement in its repayment ability & willingness within the period of observation.
" Obviously, the concept of a government living within its means, and refraining from borrowing too much money has global implications.
There are a lot more parties involved in this process than merely the Obama Administration and the U.
S.
Congress.
And there is a lot more at stake, and many other nations want the US to keep spending, because that flow of money also helps their economy.
Yet, at the same time other nations hold our debt, and they don't want to see it go down, or become worth any less.
As far as China is concerned, there is not a "Dagong" thing they can do about it, except lower the debt rating.
Indeed I hope you will please consider all this and think on it.
We've read about Standard & Poor's warning and Moody's too, and now even China's credit rating agency is warning the US to get a deal done.
Have you ever heard of Dagong Credit Rating Agency in China? Me either, until now that is.
Well, "Dagong it Anyway," I say! Meanwhile, Bill Gross, Jim Rogers, and all the other detractors in the know are saying the same thing.
President Obama noted the need to expedite the talks to reach a solution 'very soon' as our foreign trading partners are getting spooked, and that is not good for the stability of global markets.
True, enough, likewise it isn't good to continue to spend the US into oblivion on social programs either, as our middle class is holding up the whole world right now, and higher taxes, high unemployment, and continued increase of the debt is definitely one cliff we need not attempt to jump.
There was an interesting article recently in TerraDaily Online titled; "China ratings agency issues warning on US debt" by the by Staff Writers in Beijing (AFP), published on July 14, 2011 "Chinese credit rating agency Dagong said it had put US sovereign debt on negative watch for a possible downgrade, following a similar move by Moody's the previous day.
Dagong said the ability of the US to repay debt was likely to decline given its economic growth was expected to slow & fiscal deficits to remain high in the next couple of years.
Dagong will downgrade the US sovereign ratings if there is no substantive improvement in its repayment ability & willingness within the period of observation.
" Obviously, the concept of a government living within its means, and refraining from borrowing too much money has global implications.
There are a lot more parties involved in this process than merely the Obama Administration and the U.
S.
Congress.
And there is a lot more at stake, and many other nations want the US to keep spending, because that flow of money also helps their economy.
Yet, at the same time other nations hold our debt, and they don't want to see it go down, or become worth any less.
As far as China is concerned, there is not a "Dagong" thing they can do about it, except lower the debt rating.
Indeed I hope you will please consider all this and think on it.
Source...