Thursday, October 17, 2013

Sum Ding Wong

Yeah, all this dicking around with the debt limit has consequences you fucking morons.

Chinese agency downgrades US credit rating

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.



"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.

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

1 comment:

  1. Well, the entire outstanding debt could be paid off over 30 years like a mortgage with just a 3.3% tax. Mortgages are often 300% of yearly income (paid off over 30 years), the national debt is 1/3rd of that. So I think the Chinese are actually just trying to scare people into not buying Treasuries so that they can get higher interest when they themselves buy Treasuries at Treasury auctions. Wouldn't put it past the greedy bastards.

    ReplyDelete

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