Chinese Ratings Company Claims U.S. Is Already ‘Defaulting’
- Posted on June 10, 2011 at 9:32am by
Billy Hallowell
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A Chinese ratings house is making a dramatic and economically dangerous claim — that America is already “defaulting” on its enormous debt. While the ratings company is speaking more figuratively than it is literally, this is yet another round of bad news for the U.S. AFP has more:
“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.
This news comes as the U.S government debates raising its “debt ceiling” beyond the current $14.29 trillion limit (the federal government is estimated to hit this limit on August 2). The Chinese alarm isn’t the only one ringing:
Ratings agency Fitch on Wednesday joined Moody’s and Standard & Poor’s to warn the United States could lose its first-class credit rating if it fails to raise its debt ceiling to avoid defaulting on loans.
A downgrade could sharply raise US borrowing costs, worsening the country’s already dire fiscal position, and send shock waves through the financial world, which has long considered US debt a benchmark among safe-haven investments.
China, a nation that currently stands as the largest owner of U.S. debt, has been worried about America’s finances for some time now. The communist nation’s Foreign ministry spokesman Hong Lei lectured America yesterday, saying that the government needs to craft “effective measures to improve its fiscal situation”.
According to Advisor One, the world is in a quasi-panic over the current economic debate over U.S. debt:
As wrangling in the U.S. Congress continues over the debt ceiling, with Republicans insisting that a taste of default could force the White House to cut spending, the rest of the world looks on in growing horror at the prospect.
Reuters reported Wednesday that government officials all over the world, as well as large creditor nations like China, are viewing the possibility as a potential disaster the more likely it gets. On Tuesday it reported that mainstream Republicans, dismissing the idea that such a move could trigger a financial catastrophe, are beginning to espouse the idea of a technical default as a means of forcing spending cuts
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Comments (109)
charliego
Posted on June 10, 2011 at 11:08amJim Rogers,a guest on Glenn’s program yesterday 6/09/2011, suggested strongly to learn a new language. One at the top of the pool is Mandarin. Hmmmm, best go to Rosetta Stone and see what they have to offer.
Report Post »rossabh
Posted on June 10, 2011 at 10:57amIgnorance is no excuse for supporting the theft of our gift, Free Enterprise America with the ability to risk and work hard to reap the rewards if you succeed. It took WWII to save US from a previous assault on America by FDR. History teaches US what results to expect and we are seeing it under this Progressive assualt. “I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises.” — Henry Morgenthau Jr.—pal, lunch companion and loyal secretary of the Treasury to President Franklin D. Roosevelt.
Report Post »Where in history has there been a better system than the one eroded by the Progressives and left under protected by the other parties?
flsnipe
Posted on June 10, 2011 at 10:51amBuy food and ammo we are screwed !!1
Report Post »Ghastlyone
Posted on June 10, 2011 at 10:50amWe clearly need more government investment, in things like infrastructure, green technology, and high speed rail.
If only we would “invest” in high speed rail. That is the saving grace of this country.
Report Post »Outlaw_Josey_Wales
Posted on June 10, 2011 at 1:27pm@ghastlyone
Report Post »Could you please explain, how is building a high speed rail is going to save the country?
fitsgibbons
Posted on June 10, 2011 at 2:09pmGet a grip on whats going on…..DAMN….. God Bless you,but open your eyes.
Report Post »Whostolemypig
Posted on June 10, 2011 at 10:37amThe US treasury is no doubt history’s biggest check kiting scheme.
Report Post »aragona
Posted on June 10, 2011 at 10:35amI would agree that BO has had a LOT to do with this but let’s face it. Our government has been driving us to this since Wilson and the people let it happen. If we, as a country, survive this we must never again be so compacent.
Report Post »David, the Constitutional Libertarian
Posted on June 10, 2011 at 10:18amYou guys at the Blaze reading more at Zero Hedge? I noticed quite a few related articles lately.
You should write an article on how the Federal government is now raiding the pensions of the government workers and replacing them with the same type of bonds they have done with the SS fund.
I wonder if SEIU knows about it?
Report Post »MidWestMom
Posted on June 10, 2011 at 11:02amAnd you’re surprised? They’ve been doing the same to Medicare for years & years.
Report Post »Mandors
Posted on June 10, 2011 at 10:16amObama can barely quit smoking. No way he can stop spending.
Hey, can we start a pool on whether Obama puffs up when he golfs with Boehner on June 18th?
I’m good for five.
Report Post »standwithIsraelstandwithGod
Posted on June 10, 2011 at 10:14amHere comes hyper-inflation.. Hold on everybody.
Report Post »harumph
Posted on June 10, 2011 at 10:12amAll by design. Barry’s tired of us being the big guy on the block. Time to give lesser countries a run for our money.
Report Post »loadingmyclips
Posted on June 10, 2011 at 10:08ammaybe we could subtract monies given to china in the form of aid to offset the dollars owed. That’s just too bad about the declining value of the dollar! Do you think that it might have something to do with all the chinese goods coming over to our merchants???
Report Post »last frontier
Posted on June 10, 2011 at 10:07amThis looks like a job for our new comic book hero, Super Hillary! President of the world bank, and Defender of Red China, with her trusty sidekick Bill, president of the UN.
Report Post »SCARED
Posted on June 10, 2011 at 10:05amWhy doesn‘t anyone in Washington seem to be as worried as I am about our nation’s financial situation? Whether your views are religious, agnostic or athiest this debt and the weight of it on the people is morally wrong.
Report Post »let us prey
Posted on June 10, 2011 at 10:03amThe pretender in chief and Bernake are now wearing chinese finger cuffs.
Report Post »NJTMATO
Posted on June 10, 2011 at 10:00amToo bad only conservatives paid attention when BO said he would FUNDAMENTALLY CHANGE AMERICA! Those of us who have paid attention, researched and learned, did our homework, have prepared to the best of our ability. Many in my family and most of my friends think I’m nuts…or continue to just hope that something will happen to change our direction….with this bit of news out to the rest of the world, I believe that the time is coming soon….Preparation is KEY
Report Post »Hiswill
Posted on June 10, 2011 at 10:17amYou’ll have plenty of company in the nut house. My family thinks the same of me, but I‘m not letting that stop me from preparing for our future or what’s left of it. Obama doesn’t care about how much he spends. He knows if the spending works to his advantage and things get better, he will be a hero. If the spending causes the US to crash and burn, he will be retired with a nice pension, perks and body guards for life. It’s a win win for Obama.
Report Post »jb.kibs
Posted on June 10, 2011 at 10:23am“I’ll get mines.” – Barak Obama
Report Post »Stevsea
Posted on June 10, 2011 at 9:59amThe Federal Government owns a huge amount of acreage in the western US. When China demands that the US pay back some of it’s debts, our inept, incompetent officials in Washington will want to negotiate. I honestly wouldn’t put it past them to suggest trading some of that land, including our national parks, oil, natural gas, and precious metal bearing properties, for payment of that debt. Just my opinion of course.
Report Post »Gas137
Posted on June 10, 2011 at 10:07amInteresting idea. Then the Chinese (and Japanese) would have unlimited access to resources while the EPA would continue to prevent the US from using other available land.
Report Post »Obama_Sham
Posted on June 10, 2011 at 11:43amI say we negotiate the left coast…
Report Post »PRAYFOROURNATION
Posted on June 10, 2011 at 9:58amIf we americans don’t vote this guy (obama) out of office in 2012……….We are doomed….To destruction…He will drive all of us down to death…….Because he won’t have to worry about re-election after 2012…God help us!!!
Report Post »Gas137
Posted on June 10, 2011 at 9:55amJim Rogers warned us that the Fed will have to go on to more quantitative easing after this round is over at the end of June. The Chinese and Japanese will put up with devaluation of the dollar in the new round of qe but will not buy more of our debt. They will not put up with failure to raise the debt ceiling, leading to temporary default.
Report Post »clarkm
Posted on June 10, 2011 at 11:33amAgree. I read a good viewpoint about this on http://www.whitehousevoice.com
Report Post »SON OF JEFFERSON
Posted on June 10, 2011 at 9:46amThe chinese figure win win, for they either get to “guide” our economic future or see the only power in their way implode on it’s self. the trillion dollars is a fair price in their minds for Tawain and the rest of east asia
Report Post »Gonzo
Posted on June 10, 2011 at 9:59amGood analysis. The more panic they can create for us, the better for them. Not that I think there is no merit in saying it. They just have a completely different motivation for saying it than we do.
Report Post »ENTITLEMENTSBLOW
Posted on June 10, 2011 at 9:46amGood job fundamentaly changing the greatest nation in the world Obummer!
Report Post »IMPEACHBHO
Posted on June 10, 2011 at 9:45amBernanke (BHO’s buddy) is already talking of QE3 – to devalue our dollar more! Ya, that’ll help!
Report Post »SamIamTwo
Posted on June 10, 2011 at 9:43amGive em rapid fire dollars from the printing press. LOL
Report Post »TexasCommonSense
Posted on June 10, 2011 at 9:56amShoot, they create them digitally these days. There’s no limit to the speed at which they can create money, or should I say, devalue or money.
Report Post »NOKOOLAIDDRINKER
Posted on June 10, 2011 at 9:40amWhen we hear this from the Chinese, from multiple sources—we are DOOMED!!! Pray and Prepare!!!
Report Post »oriondma05
Posted on June 10, 2011 at 9:39amAt least someone is telling the truth, just confirms what Beck, Limbaugh, and the rest have been saying for two years now. Those wackos!
Report Post »cessna152
Posted on June 10, 2011 at 10:04amBeck and Limbaugh= But they are a bunch of racists… I can’t prove they are, but they are also liars… which, I can not prove either. They should be tried and thrown in jail, they have nothing to do with writing policy and I can’t prove what they did wrong!
I can’t prove anything, but just because they predicted this does not erase the “fact” they are bigoted, lying, haters!! I have no facts to back that up as well.
(Sarcasm)
Report Post »So
Posted on June 10, 2011 at 1:08pmAnd Obama wants another stimulus to put the final nail in our economy.
Can we get a strong conservative candidate ASAP?
Report Post »FREDD The WILSON
Posted on June 10, 2011 at 1:36pmAnd if all you right wing wackos and teabaggers would have stop listing to Limbaugh Levin Hannity Beck and Savage years ago we could have made this transition to Marxism and the New World order go alot more quicker and smoother.
Report Post »SpankDaMonkey
Posted on June 10, 2011 at 9:36am.
Report Post »Well here it comes. Obama has the cheeseburger grill all fired up. Where’s my Sh_t Sandwich….
IMPEACHBHO
Posted on June 10, 2011 at 9:42amThanks BHO, thanks Bernanke. Hey BHO, got some spare CHANGE?? I HOPE you do, because you’re spending all of mine because you think you CAN!!
Report Post »joe conservative
Posted on June 10, 2011 at 9:45amThis is where I think the president must be doing this on purpose. It doesn‘t take much to fugure out that you can’t just keep spending money that you don’t have. This video details the whole debt ceiling topic. http://www.youtube.com/watch?v=UeIW4yJMYFI
Report Post »Obama Snake Oil Co
Posted on June 10, 2011 at 9:47amHave they ever heard of Bernie Madeoff with our money? They should be tried for treason along with those in congress that supported the 4 trillion dollars we didn’t have.
Report Post »Snowleopard {gallery of cat folks}
Posted on June 10, 2011 at 9:48amWhen the warning from China start getting past the rumblings of a ‘warning of concern’ to this level of where we are now ‘defaulting’ the world is going to take action shortly. Currently, the Chinese govt’ sees the weakness of America and her leadership, and will use the time to continue influential and economic expanding into traditional USA allies.
Look though for the cracks starting to form in the Chinese economy, for they are there, and soon enough, even China may go down; just as the US may soon go down.
Report Post »Blackhawk1
Posted on June 10, 2011 at 9:49amGee do you think the liberals will finally get the message? I doubt it.
Report Post »Snowleopard {gallery of cat folks}
Posted on June 10, 2011 at 9:49am@Joe:
Indeed it is deliberate – pressure, pressure, pressure. Eventually, the system will come down, and they – the administration – are building the structure for it to collapse into. Keep watching and counting the new escalation on the admin’s part to turn the nation upside down, and inside out.
Report Post »TexasCommonSense
Posted on June 10, 2011 at 9:50amNever let a good crisis go to waste, even one created by the king and all the king’s men. I think this is what they call peeing on our collective leg and telling us it’s raining.
Report Post »escape_from_socialism
Posted on June 10, 2011 at 9:51ambla bla bla…..
check this out;
Report Post »http://www.infowars.com/bilderberg-2011-full-official-attendee-list/
KOCHLEFFEL
Posted on June 10, 2011 at 9:54amThis enormous money problem is not only Obama’s fault it goes back to a few jerks who led us into this dilemma. The government should be ashamed to be lectured by the Chinese, maybe we could learn from them, no it is too late!
Report Post »escape_from_socialism
Posted on June 10, 2011 at 9:58amThey are trying to scare us. NO to rising debt ceiling.
I’m sure they (bankers) will bring catastrophe upon us, for not letting them borrow more money, but it will be short live. Better now then later, and without easy money they will die but we will survive. Take away they power to print money. It is a source of their power and they will be finished.
Report Post »siebegorman
Posted on June 10, 2011 at 9:58amThis comes from a country which routinely manipulates their currency at the expense of everyone else. China, shut up.
Report Post »Now this is Art
Posted on June 10, 2011 at 10:08amchina can fok-off. like russia did, we NEED to default and tell the chi-coms to F-OFF. they have poisoned out babies, ripped off our technologies, infringed on our patents, toyed with our navy….fok ‘em. tell they can flush all their bonds…BECAUSE WE AINT PAYIN’
Report Post »encinom
Posted on June 10, 2011 at 10:20amAnd the GOP is playing around with the debt limit like a retarded child witha match and gasoline, to score points with their uneducated tbagging base.
Report Post »Brasil2520
Posted on June 10, 2011 at 10:22amTo OBAMA SNAKE OIL CO
When you get a chance take look at this movie, “Casino Jack” its about Bernie
Report Post »idrathermisstotheright
Posted on June 10, 2011 at 10:22amFundamental transformation to be defined over 4 or 8 years? As his definition gets clearer so does the destruction of the US. People of his political philosophy need to be rounded up and sent to a rock quarry with a chain around each leg and a hammer since that is the result the rest of America will experience after the fundamental transformation is complete.
Report Post »escape_from_socialism
Posted on June 10, 2011 at 10:24amDear Blazers.
Report Post »Please check and comment about Bilderberg meeting.
go to drudge report, infowars, google it
It is about our future and our kids.
We have to pressure media, all media to report it.
As Glen sad, you don’t have to go to watherburger, but Bilderberg group is real and they are meeting right now. We have to expose them like media exposed Weiner.
Now this is Art
Posted on June 10, 2011 at 10:28am@ENCINMOM
Report Post »your an idiot. you’ve bought into all the lilberal media bs. we’re not going to explode if we dont raise the debt limit, just like we wouldnt have imploded if we didnt bail out the banks, only to have them give the money to banks in europe. when will you liberal morons realize your being played by the liberal elite that arent going to give you a fokkin penny when they take it all from the ‘rich’….ever read a history book??
DrFrost
Posted on June 10, 2011 at 10:54am@BLACKHAWK1
The evidence is that they’re already ramping up to blame the conservatives.
Report Post »Miami
Posted on June 10, 2011 at 10:56amAnd so it begins,
Are you armed and stocked up yet, time is running out
Report Post »Polwatcher
Posted on June 10, 2011 at 10:56amI agree with China on this. Inflation has been 9% per year for two years and our federal reserve claims 2% or less. Bank rates are around 1%. This is aall make believe. All we get are lies from government officials. In the money business, lies = default.
Report Post »TomFerrari
Posted on June 10, 2011 at 11:07amI think when Obama ran on “CHANGE” – what he really is meant, is, ALL YOU WILL HAVE LEFT FROM YOUR LIFE’S SAVINGS is some “CHANGE”.
Or, maybe your home will be worth little more than pocket CHANGE.
Thanks, Obama!
Report Post »drbage
Posted on June 10, 2011 at 11:22amWhen you take these reports and join them to the rumors that the Hillary is looking to become President of the World Bank, which basically does nothing but spend both taxpayer money and borrowed Chinese money with NO control by Congress, you have a scenario that must make Spooky Dude smirk and clap his hands. Hillary’s new moniker could be Spooky Dudette!
Report Post »smithclar3nc3
Posted on June 10, 2011 at 11:22am14,4000,000,000,000 most of it attributed to socialist entitlement programs more proof socialism doesn’t work. And while our country burns these useless pr**ks in D.C. CONTINUE TO EXPAND SOCIALIST PROGRAMS and continue sending U.S. TAX DOLLARS TO OTHER COUNTRIES.
Report Post »CatB
Posted on June 10, 2011 at 11:59amWatch Obama .. he is “doubleling down” on the spending !! Even O’Reilly has noticed!
TEA!
Impeachment is TOO GOOD .. Try them for TREASON!
Report Post »GETLIFE
Posted on June 10, 2011 at 12:35pmAll of the arrogance is perhaps justified–Americans are perhaps too naive to figure it out until it’s too late– just a bunch of racists eager to vote for the first “black” president. Well now the future looks pretty black, and our president is either an idiot or a criminal. The idea of an “historic election” now has an entirely different meaning.
Report Post »Sound The Trumpet In Zion
Posted on June 10, 2011 at 1:04pmI say that all of us Americans can tell the chinese and everyone else around the world that an imposter in the WH borrowed that money without our approval and so we are not liable nor will we pay. If they don’t like that, they can come and collect from obama and his cronies personally and if they don’t pay. Well, what do loan sharks do? Just as long as they know that we America didn‘t borrow the money and it’s just tough luck on anyone that did borrow using our name.
Report Post »101
Posted on June 10, 2011 at 2:25pm[QUOTE] “Ratings agency Fitch on Wednesday joined Moody’s and Standard & Poor’s to warn the United States could lose its first-class credit rating if it fails to raise its debt ceiling to avoid defaulting on loans.”
So more debt increases your credit rating. WTF do they really think American’s are that stupid!
Take away our so called “first-class credit rating” it’s a step in the right direction…governments addiction to spending has to stop!
Report Post »silentwatcher
Posted on June 10, 2011 at 5:44pmIt’s beginning……………
Report Post »silentwatcher
Posted on June 10, 2011 at 5:47pmFor the life of me I DO NOT understand how the Democrats won‘t stop spending and won’t parlay for substantially large spending cuts. I fear now that the U.S. government MUST shut down to slow down the disaster from escalating.
Report Post »fixer
Posted on June 10, 2011 at 6:46pmwhy do they keep saying that we would default on our debt? we take in enough taxes to TOTALLY pay our debt and interest no problem.we would have to CUT the FREE money Obummer is passing for QE1,QE2 and NOW(drumroll)…QE3…guarenteed to cure what ails us.
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