China downgrades U.S. credit rating

I was honestly wondering what was taking so long until the international medium finally said something about the U.S. economic policy.

Chinese Agency Downgrades US

What are your thoughts on this? Symptoms of bad policy, possible economic collapse or future financial upheaval? Or is China just mad?

However, something to really note is their reasoning behind the maneuver. Here is a quote from the agency.

"Hence the government is still approaching the verge of default crisis, a situation that cannot be substantially alleviated in the foreseeable future," it said.

Maybe US should undervalue the dollar as a counter-measure. Fight fire with fire, China has been doing it for years now so they can't say anything lest look like hypocrites

This isn't surprising, China has a lot invested in the US. The US keeps being fiscally irresponsible and spending money like a lottery winner. If I was China and just witnessed the US vote itself a higher credit limit (AND start up talks about ending the Sequester) while doing nothing to reign in spending, I'd do the same thing. Good on China.

America has no one to blame but itself for this.


Dont like it tough!

Shouldnt have acted like children.

China simply downgraded USSA...

They are the Superpower now...

We are gonna have to deal with that!!

Militaristic Communist China!!

Thanx again Nixon....For Everything....

USA is now under the heel of something..



Need an Elite supreme alien being to save us...

Meaningless. China long ago ceased buying U.S. debt, everyone has, that is why we now "buy our own debt".

If it is rated at anything above D, the Chinese are still off the mark.

I think economics works in a world with it's own very real and somewhat flexible rules...but they only flex so far.

We damn near broke them outright in a time of world history where the US is no longer in any position to expect automatic tolerance, let alone forgiveness on much of anything, IMO.

China is just doing what China has to do as a nation with their own interests to protect and we let ours run down. We'd do the very same with then, if roles were reversed. Perhaps more.

and why hasnt the world been doing this EVERY time we raise the debt ceiling?
maybe the ones in charge here would have taken a budget seriously, years ago.

Some people think it's oil and gas...

and a 'balance' of international trade.

China’s Dagong credit rating agency on October 17th downgraded its United States sovereign credit rating to A- and maintained its negative outlook on America’s solvency. Dagong warned that despite Washington's last-minute resolution of the debt ceiling deadlock, “The fundamental situation that the debt growth rate significantly outpaces that of fiscal income and gross domestic product remains unchanged.”

China understood that as it sucked manufacturing jobs out of the U.S., the Chinese renminbi currency would be expected to rise in value and destroy their “cheap” labor advantage. As a communist nation, they adopted a national policy of recycling a portion of their export sales revenue into the purchase of U.S. Treasury bonds to drive up the value of the U.S. dollar versus the Chinese renminbi.

Fearing that every 10% increase in the exchange rate of the renminbi to the dollar would cause the loss of 35 million manufacturing jobs, by 2008 China had purchased $2 trillion in U.S. Treasury Bonds. China’s bond purchases drove down U.S. interest rates and caused a real estate building boom, employing millions of Americans. But when the real estate bubble burst, the “Great Recession” educated Americans on the pain of losing manufacturing jobs.

Hmmm. Sounds like *Economic Insurrection* ?


Unusually good article;
Why China Wants to Dump the Dollar


and on the 'outside', they and others might be worried about future interpretations of the 14th Amendment
There are some rumblings

China has its own REAL problems.

Without America buying the junk they produce I fear China would be in for a shock.

Its about World viewpoints.

reply to post by WorthlessServant


Thats all bs. The debt ceiling raise did not help our economy, and the A rating was already dropped over a year or more ago, so this is nothing new.

reply to post by Wrabbit2000


And as if you could really use the A-F score.... If that were so US with our debt to china would be at about a D- at this point.

crazyewok
America has no one to blame but itself for this.


Dont like it tough!

Shouldnt have acted like children.

America never had a choice.

This is the path that was made for them.

China is up to bat and it means very little in the grand scam
of central banks.