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Chinese rating agency strips Western nations of AAA status

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posted on Jul, 13 2010 @ 08:04 PM
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Yes, this is self-serving on China's part, and I do not trust their accounting or economic statistics. But they do have a point in that the rating agencies hand out triple-A's these days the way schools put stars on every kid's forehead so they don't feel bad. But not everyone can be a winnah, can they?

I don't see "ideological bias in favor of the west" per se behind the grossly inflatied ratings. I think its just economic and poltiical pressure/expediency.



Chinese rating agency strips Western nations of AAA status

China's leading credit rating agency has stripped America, Britain, Germany and France of their AAA ratings, accusing Anglo-Saxon competitors of ideological bias in favour of the West.

Dagong Global Credit Rating Co used its first foray into sovereign debt to paint a revolutionary picture of creditworthiness around the world, giving much greater weight to "wealth creating capacity" and foreign reserves than Fitch, Standard & Poor's, or Moody's.

The US falls to AA, while Britain and France slither down to AA-. Belgium, Spain, Italy are ranked at A- along with Malaysia.

Meanwhile, China rises to AA+ with Germany, the Netherlands and Canada, reflecting its €2.4 trillion (£2 trillion) reserves and a blistering growth rate of 8pc to 10pc a year.



More at source
www.telegraph.co.uk...




posted on Jul, 13 2010 @ 09:03 PM
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I certainly believe China is more credit-worthy than the US. Their ratings seems to be based on mathematics more than on politics. The US will be junk status a few years down the road. China on the other hand most likely will not be junk status.

A debt/GDP ratio of 100% indicates a possible bankruptcy ahead. There is almost no doubt the US will be hitting that 100% number in a year or two... currently at about 93%. The official debt/GDP of China is a mere 20% to 25%. Even though the real number could easily be twice that I don't believe given the attitude of China towards debt that it is anywhere close to that of the USA.

I think Japan will bankrupt before anybody else does. And when I say bankrupt I mean they run out of money and have to dramatically cut government services due to not having money for them. If Japan's rates go up 0.5% they are instantly toast. And chances are that will happen. This is what inevitably happens when you have a system based on voting to take away other people's money without their permission.



posted on Jul, 13 2010 @ 09:37 PM
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A little late on the topic OP ..search first please.


www.abovetopsecret.com...



posted on Jul, 13 2010 @ 09:49 PM
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Originally posted by awakentired
A little late on the topic OP ..search first please.


www.abovetopsecret.com...


We are allowed to post the same story simultaneously in both breaking news and in other forums. Please read the terms and conditions before criticizing.

Beyond that, I always took the stance that: "what does it matter how many threads are posted on a topic or who started them, as long as the information is on the table?" I guess some people have other ideas.



posted on Jul, 13 2010 @ 10:50 PM
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reply to post by silent thunder
 


Sorry, my ignorance of terms. I was only giving a heads up ..no offense intended brother.



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