Dagong Global Credit Rating Co. Ltd., the bomb-tossing Chinese rating agency, is at it again. Apparently while everybody in the bond market was distracted by Weinergate or something, the US government defaulted on its debt!
That’s what Dagong — who last month downgraded the UK and has already cut the US credit rating twice in the past year – said this morning, anyway.
“In our opinion, the United States has already been defaulting,” Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., the only Chinese agency that gives sovereign ratings, was quoted by the Global Times saying.
Washington had already defaulted on its loans by allowing the dollar to weaken against other currencies — eroding the wealth of creditors including China, Guan said.
All righty then, so why haven’t you cut the country’s credit rating to junk?
http://blogs.wsj.com/marketbeat/2011/06/10/us-has-already-defaulted-says-chinese-rating-agency/