Chinese Agency Downgrades US Credit Rating

[Purveyor]

Source: Agence France-Presse

AFP - A Chinese ratings agency downgraded its US sovereign credit rating Thursday despite Washington's resolution of the debt ceiling deadlock, warning that fundamentals for a potential default remained "unchanged".

Dagong lowered its ratings for US local and foreign currency credit from A to A-, maintaining a negative outlook, the agency said in a statement.

The announcement came after the US Congress passed and President Barack Obama signed a bill that extends the nation's borrowing authority and ends a two-week government shutdown.

Read more on FRANCE 24: Republicans "biggest losers" in shutdown aftermath

"The fundamental situation that the debt growth rate significantly outpaces that of fiscal income and gross domestic product remains unchanged," Dagong said in the statement, adding Washington's solvency was vulnerable as old debts were still repaid through raising new debts.

Read more: http://www.france24.com/en/20131017-chinese-agency-downgrades-us-credit-rating

[onehandle]

1. The GOP Tea Party: China's Best Friend©. nt

[flamingdem]

2. Can't really blame them

Why should they be exposed to the loonies in our country. They are the ones who would lose the most if the usa goes bankrupt.

[Lochloosa]

8. That's not accurate. China only owns 7.5% of our debt.

[dixiegrrrrl]

17. which equals $1.28 trillion

according to
http://www.washingtonpost.com/blogs/worldviews/wp/2013/10/10/this-surprising-chart-shows-which-countries-own-the-most-u-s-debt/

[Lochloosa]

18. It is a lot of money, I agree. But I was responding to the statement:

"They are the ones who would lose the most if the usa goes bankrupt."

Actually, the ones that would lose the most would be American investors. You and me.

We own 67% of the debt.

[ffr]

3. Of course. We'd do the same, situations reversed.

Thanks Boehner & Co., you've just made it harder on us all.

[RKP5637]

5. Yep, brought to us by the Teaparty Patriots, the "real americans," those

protecting the US from the majority of Americans. Nice job guys, you fucked it up again for the rest of us. Ass hats.

[daybranch]

12. do we really know

why things happen in China? it is such a great democracy- not!

[RKP5637]

4. In the big picture, nothing has changed, we can go through all of this bullshit again. I don't

blame them one bit. I would see the US as increased risk too.

[Auggie]

10. I agree ... best chance for change will be the 2014 election

[RKP5637]

11. Exactly, these people are unfit to serve ... and with an approval rating of I think

~10% now for congress ... I don't think many companies, for example, keep employees with a performance rating of 10%.

Clarification (update): ... not all of congress, but those responsible for impeding the democratic process and progress of this nation by disruptive shenanigans.

[daybranch]

13. Actually you should quit worrying.

The rich owners of the GOP aka the teaparty have spoken , you are not allowed to stop the raising of the debt limit. This eats up some of their profits. This ain't gonna change.

[RKP5637]

14. Quite true, big money talks and has power, the rest of us just talk. n/t

[AllyCat]

6. I agree. The fundamentals do remain unchanged

That evil GOP/TEArrorist group will do this again in February. One thing I see working against them (and it's a big thing) is that by then, millions will now have health coverage under ACA and many of those will be Republicans...and they will realize they have been lied to...and might put some pressure on their reps for opposing their earned benefits.

[WilliamPitt]

7. The end of the world as we know it in six words

China: "We want our money back."

[RKP5637]

15. And, eventually, that will likely happen given the demonstration of financial and

political astuteness of the US NOT the past 2 weeks and the potential for continuance.

[Laelth]

9. k&r for exposure. n/t

-Laelth

[Pterodactyl]

16. Not unexpected. We do have a ridiculously increasing debt.