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China Downgrades US Again, From AA To A+, Outlook Negative, Sees "Long-Term Recession", Blasts QE2, Expects Creditor Retaliation

Tyler Durden's picture





 

With apologies for the Zagat-style headline, but, well, it's on ladies and gents:

Dagong has downgraded the local and foreign currency long term sovereign credit rating of the United States of America (hereinafter referred to as “United States” ) from “AA” to “A+“, which reflects its deteriorating debt repayment capability and drastic decline of the government’s intention of debt repayment.

The serious defects in the United States economic development and management model will lead to the long-term recession of its national economy, fundamentally lowering the national solvency. The new round of quantitative easing monetary policy adopted by the Federal Reserve has brought about an obvious trend of depreciation of the U.S. dollar, and the continuation and deepening of credit crisis in the U.S. Such a move entirely encroaches on the interests of the creditors, indicating the decline of the U.S. government’s intention of debt repayment. Analysis shows that the crisis confronting the U.S. cannot be ultimately resolved through currency depreciation. On the contrary, it is likely that an overall crisis might be triggered by the U.S. government’s policy to continuously depreciate the U.S. dollar against the will of creditors.

Full report (pdf):

Dagong US

h/t Pedro

 


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Tue, 11/09/2010 - 11:23 | Link to Comment juangrande
juangrande's picture

Hi Ho Silver! Away!

Tue, 11/09/2010 - 11:27 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

Its the end of the world as we know it.

Tue, 11/09/2010 - 11:34 | Link to Comment Gene Parmesan
Gene Parmesan's picture

Am I the only one who doesn't feel fine?

Tue, 11/09/2010 - 13:16 | Link to Comment OldTrooper
OldTrooper's picture

No.  It's pathetic that we have to get real news on the state of our economy from the commies.  Welcome to the Matrix.

A+, Outlook Negative -- They are being generous.

Tue, 11/09/2010 - 16:31 | Link to Comment duncecap rack
duncecap rack's picture

I thought they were being generous too. When I read it it seemed like they made a pretty good case for BBB. My favourite line was saying QE 2 was analagous to drinking poisin to quench your thirst.

Tue, 11/09/2010 - 11:35 | Link to Comment Revolution_star...
Revolution_starts_now's picture

"Its the end of the world as we know it."

and I feel fine.

Tue, 11/09/2010 - 12:21 | Link to Comment Cruel Aid
Cruel Aid's picture

Stipe is nuts, so his opinion doesn't count. And that's ok.

Tue, 11/09/2010 - 11:35 | Link to Comment Whizbang
Whizbang's picture

Hi-Ho parabolic blowoff in silver! Away! The good news is that you can now buy precious metals with only 25% down!

Nothing to see here, no bubble in commodities happening at all right?

 

Also, you should know that this downgrade is nothing more than some petulance from the chinese 'people' because obama is pushing to allow india onto the u.n. security council.

Tue, 11/09/2010 - 11:39 | Link to Comment tmosley
tmosley's picture

Feel free to go all in short.

Reap your reward for being so smart or stupid.

Tue, 11/09/2010 - 12:27 | Link to Comment Shameful
Shameful's picture

Where can I buy physical for 25% down?

Also have to agree, feel free to short silver/gold. Maybe it's not a bubble in commodities and the bubble that is the dollar deflating. But hey I could be wrong, gold back to $35 an ounce?

Tue, 11/09/2010 - 12:31 | Link to Comment goldsaver
goldsaver's picture

$35? Shit, I would be orgasmic over $350! Give me a chance to buy a whole lot more!

Tue, 11/09/2010 - 13:13 | Link to Comment Turd Ferguson
Turd Ferguson's picture

Btw, Rand Paul was on GB this morning. Regarding the debt ceiling, he said he'd vote "no" on raising it but he expects it to pass. Signals he will not filibuster.

Tue, 11/09/2010 - 11:23 | Link to Comment Ragnarok
Ragnarok's picture

Put your money where your mouth is and start selling treasuries already. 

Tue, 11/09/2010 - 11:32 | Link to Comment Minion
Minion's picture

Maybe they're waiting for the JUMBO POMO's to begin!

Tue, 11/09/2010 - 11:38 | Link to Comment Ragnarok
Ragnarok's picture

I hope so, plus we don't know if the number of bonds they are holding is accurate.  They may have already sold a large portion.

Tue, 11/09/2010 - 13:06 | Link to Comment illyia
illyia's picture

HA! Almost forgotten.

Apparently they were "bearer bonds" meaning that whomever has them owns the loot. But they were rendered illegal (to produce more of) long ago. These were left overs but still legal tender. They were possibly part of a postulated dollar refunding program that was sponsored by China and the English Queen but nixed by Geithner et al. Apparently the FedTreas wanted control of the funds for themselves.

The guy who reported on these things died last July under mysterious circumstances and accused USoA Ops of doing him in in his last post. He was a fine man.

He was an upstanding English gentleman who had been slandered for his reporting of, what he then called, the derivatives "Octopus" - or the "Financial Carrousel" - foreshadowing Matt T's later Vampire Squid.

We will never know all of it. But the Japanese incident was an attempt to cash in on old collateral. We may hear many rumors of like incidents in the future. Unlikely we will ever hear the real news...

If you have certain security systems they will block the deceased reporter's site. However, his archives are still up - last I checked - except for the last post... that one was removed.

i.

Tue, 11/09/2010 - 14:28 | Link to Comment DaveyJones
DaveyJones's picture

Yeah, always thought that was an interesting one. Would make a nice little documentary. Can you give me a link to this site? Thanks

Tue, 11/09/2010 - 23:16 | Link to Comment illyia
illyia's picture

You asked for it.

http://www.edwardharle.com/news

Last post (snippet of archive) 7-10-10: He died four days later 7-14-10.

A detailed report on this assassination attempt and the horrible illness inflicted on the Editor as a consequence will be published as soon as feasible.
We now have proof that the CIA/MI6/Obama/Bush/Cheney issued an assassination order against this Editor. We have proof that they are surprised that the Editor is not dead.

Tue, 11/09/2010 - 11:39 | Link to Comment truont
truont's picture

I think that China is being smart about their move out of Treasuries.

I think they are trying to directly swap their Treasuries for hard assets/commodities/companies/strategic resources around the world.

They don't want to spook the Treasury market just yet--they are working on their escape plan.

Tue, 11/09/2010 - 11:43 | Link to Comment DaveyJones
DaveyJones's picture

seems that way

Tue, 11/09/2010 - 11:43 | Link to Comment AbandonShip
AbandonShip's picture

Absolutely.  They need to exit quietly so as not to move the price against their large UST position too quickly. Hard trick to pull off.

Tue, 11/09/2010 - 12:40 | Link to Comment SheepDog-One
SheepDog-One's picture

Exactly, China is dumping treasuries, probably at a good discount, in order to stock up on commodities. When the trade becomes a wash for the Chinese then its on. But they are quietly getting rid of their US Treasury debt no doubt.

Tue, 11/09/2010 - 13:52 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

I believe that is what Bennie wants. To chase all foreign creditors out of the UST market including China. Defaulting on your own citizens is much easier than a foreign nation.

Tue, 11/09/2010 - 11:24 | Link to Comment kaiserhoff
kaiserhoff's picture

You know the world is upside down, when the Chicoms are on the leading edge of bond rating.

Tue, 11/09/2010 - 11:38 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

This has everything to do with them climbing on top of the dead and decomposing body of America in order to save themselves from drowning.

Tue, 11/09/2010 - 11:50 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

How bad is it going to be, Daddy?

Tue, 11/09/2010 - 12:24 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

"Every thing's going to be fine Honey. Daddy would never let anything bad happen to you."

Tue, 11/09/2010 - 12:05 | Link to Comment Running on Empty
Running on Empty's picture

Well as long as it's decomposing it will float, once it stops their dead too.

Tue, 11/09/2010 - 12:26 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Agreed.

But kick the can is the only game in town.

Tue, 11/09/2010 - 11:25 | Link to Comment MrTrader
MrTrader's picture

That´s the right answer for stupid beyond all imaginations FED governors-especially Bullard. Did this guy ever attended primary school ?

Tue, 11/09/2010 - 11:25 | Link to Comment DaveyJones
DaveyJones's picture

"indicating the decline of the U.S. government’s intention of debt repayment."

can something that does not exist lose value?

Tue, 11/09/2010 - 11:58 | Link to Comment SheepDog-One
SheepDog-One's picture

Yes it seems value is just in the eye of the beholder....as things that used to be SCOFFED at as valuable suddenly shoot up in demand....PM's, ammo, weapons, food...all going parabolic.

Tue, 11/09/2010 - 12:07 | Link to Comment ZakuKommander
ZakuKommander's picture

Weaponry still a good buy, especially those durable AK variants.

Tue, 11/09/2010 - 12:42 | Link to Comment SheepDog-One
SheepDog-One's picture

Still a good buy yes...but I harked way back to the good ol days (3 years ago) where you could buy an SKS and 1,000 rounds for $100. Look at an SKS today, $350 or so, and the ammo has tripled.

Tue, 11/09/2010 - 12:19 | Link to Comment DaveyJones
DaveyJones's picture

Yeah, food. Frankly, the world's food production system scares the shit out of me more than anything else

Tue, 11/09/2010 - 11:27 | Link to Comment vote_libertaria...
vote_libertarian_party's picture

They have so much to learn.

 

If you are holding a massive amount of an asset (Treasurys) and you think they are junk but you want to sell then you tell everybody they are a BUY BUY BUY.

Tue, 11/09/2010 - 11:31 | Link to Comment A Man without Q...
A Man without Qualities's picture

you'd be amazed what size you can get done in the swaps market if you are patient...

Tue, 11/09/2010 - 11:32 | Link to Comment lolmao500
lolmao500's picture

Indeed.

As many analysts said, they should have started buying stuff with their US dollars a few years ago and be done with US dollars by now.

Now they are just committing suicide.

Tue, 11/09/2010 - 11:42 | Link to Comment tmosley
tmosley's picture

I guess you didn't hear about how they have been acquiring gold on the sly for years, or where they have been buying up commodities and producers worldwide?

Tue, 11/09/2010 - 12:43 | Link to Comment SheepDog-One
SheepDog-One's picture

Yes but those who were warning of China and others acquiring gold on the sly years ago were called 'consipracy kooks' 'tin foilers' as 'all was well' and the economy = A-Ok!

Tue, 11/09/2010 - 12:01 | Link to Comment SheepDog-One
SheepDog-One's picture

OH now the Chinese should have listened to the US economists who have of course gotten everything right all along? LULZ!!

(Maybe the first time 'LULZ' has ever been used on Zerohedge before, but oh so fitting.)

Tue, 11/09/2010 - 14:36 | Link to Comment JohnG
JohnG's picture

Buzzsaw lulz frequently.

Shadenfruade bitchez!

 

(can't spell German so much...)

Tue, 11/09/2010 - 11:28 | Link to Comment packman
packman's picture

Odd - there's no header or source information on that paper.  Not that I doubt it, but shouldn't there be some official-looking header page and such, indicating what is the source of the info?

 

Tue, 11/09/2010 - 11:54 | Link to Comment LMAO
LMAO's picture

LOL

Some official-looking header page = credibility

Like in the logo from: "Board of governors of the federal reserve system"

and the document beginning with: "We the people"

 

If you see anything resembling an official-looking header you know you are in trouble and you better start running.

LMAO

Tue, 11/09/2010 - 12:01 | Link to Comment SheepDog-One
SheepDog-One's picture

Heh heh heh..

Tue, 11/09/2010 - 12:30 | Link to Comment Mariposa de Oro
Mariposa de Oro's picture

Why not just stick the Obama logo on it?  His Believers will feel better seeing the mark of their savior...

;o>

Tue, 11/09/2010 - 11:54 | Link to Comment LMAO
LMAO's picture

.

Tue, 11/09/2010 - 11:27 | Link to Comment macholatte
macholatte's picture

I Am Jack's Complete Lack of Surprise

Tue, 11/09/2010 - 11:31 | Link to Comment Agent P
Agent P's picture

...said our largest creditor and deficit trading partner.

I'm taking this one with a big grain of salt (or in this case, MSG).

Tue, 11/09/2010 - 11:29 | Link to Comment lolmao500
lolmao500's picture

This is it. NICE.

Tue, 11/09/2010 - 11:29 | Link to Comment Anal Picnic
Anal Picnic's picture

China downgrading the debt they own probably makes them wish they hadn't played mercantilists with a country that prints the trade currency. Maybe China man not so smart.

Tue, 11/09/2010 - 11:33 | Link to Comment SheepDog-One
SheepDog-One's picture

OR....they have us RIGHT where they planned to have us ALL ALONG!

Tue, 11/09/2010 - 11:56 | Link to Comment assumptionblindness
assumptionblindness's picture

Forgive me for stating the obvious but why do we still have AAA ratings from Moody's, Fitch, and S&P?  Hee hee...

Even China's rating of the US is INFLATED at A+/outlook negative.  'careful not to crash those bonds before selling them...

Tue, 11/09/2010 - 12:44 | Link to Comment docj
docj's picture

Paraphrasing Admiral Josh Painter from Hunt for Red October...

(ChiComs) don't take a dump, son, without a plan.

Tue, 11/09/2010 - 13:55 | Link to Comment whaletail
whaletail's picture

Siege is the worst way to defeat an enemy. But in the end, as Georgy Zhukov said when confronted by Western journalists post-WWII and the larger number of Russian soldiers lost in battles vis-a-vis the Nazis: perfect is the mortal enemy of quite good enough.  China will take the victory even if it means it is holding a bunh of worthless treasuries.    

Tue, 11/09/2010 - 11:34 | Link to Comment Central Wanker
Central Wanker's picture

Hmm.... so this is what happens, if you f*ck with your creditor. Interesting!

Now we at least know that the Chinese are mad. Does it actually matter?

Tue, 11/09/2010 - 11:50 | Link to Comment Xedus129
Xedus129's picture

Maybe.. seeing how they have nukes, more warships, and a hell of a lot more manpower than us.

Tue, 11/09/2010 - 12:34 | Link to Comment Bob
Bob's picture

Nukes appear to be equal opportunity items worldwide:

http://www.guardian.co.uk/world/2010/nov/07/nuclear-material-black-marke...

Tue, 11/09/2010 - 11:31 | Link to Comment Buttcathead
Buttcathead's picture

It's all gunna crash and burn one of these days...  Sure wish I could buy more ABK.

Tue, 11/09/2010 - 11:32 | Link to Comment SheepDog-One
SheepDog-One's picture

Hmmm stocks seem to LOVE it!! LOL Bizarro World deluxe.

Tue, 11/09/2010 - 11:34 | Link to Comment Whatta
Whatta's picture

damn them chinamen. cancel them 65,000,000 ship loads of plastic crapolas I had ordered. I'll find a non-uppity Vietnamese to make it fer me instead. they'll rate our FED money AAA.

Tue, 11/09/2010 - 12:12 | Link to Comment Anarchist
Anarchist's picture

And where are the Vietnamese going to buy the raw materials and components to make all your crapola? The Vietnamese cannot make crap unless everything required to make the product is shipped into the country. Funny thing is much of it has to come from China....

Tue, 11/09/2010 - 11:35 | Link to Comment doomandbloom
doomandbloom's picture

ni hao, bitchez

Tue, 11/09/2010 - 11:36 | Link to Comment lolmao500
lolmao500's picture

"In essence, the U.S. government's move to devalue the dollar indicates its solvency is on the brink of collapse".

Tue, 11/09/2010 - 11:42 | Link to Comment truont
truont's picture

"In essence, the U.S. government's move to devalue the dollar indicates its solvency is on the brink of collapse".

The tension caused by our USGovt insanity is now palpable in the most powerful places of the world.

Anyone who has not hedged their FRN/USTreasury exposure is going to be very, very sorry in the months coming ahead...

Tue, 11/09/2010 - 11:50 | Link to Comment Anal Picnic
Anal Picnic's picture

I think I saw a movie where the Chinese were overwhelming a U.S. position during the Korean War and the U.S. commander called an air strike on his own position. Maybe this is what Bernanke is doing. You want to be paid? Take these worthless dollars, sucker.

Tue, 11/09/2010 - 11:57 | Link to Comment spartan117
spartan117's picture

That only speeds up the demise of the US.  You can't just devalue your currency with ONE creditor nation - it would be across the map.

Tue, 11/09/2010 - 13:44 | Link to Comment cougar_w
cougar_w's picture

I'm reminded of how the US destroyed the USSR; an expensive arms race that we could afford and they could not, because we could print the global currency and they could not. You can say all you like about the fall of the USSR, but that's the usual story. Reagan did it, did it deliberately, and it worked. We're still paying the bill of course and the RBN is doing really well and might pwn our butts someday, so "worked" is a relative term.

Act II: China Syndrome. We don't have to do great if China does extremely shitty and dies before we do. Our balance sheet would look really great if China came completely unhinged and imploded, allowing us to skate away.

Though we'd still be stuck with another bill. They'll have to inflate that away I guess. Going to be a bumpy ride.

Tue, 11/09/2010 - 13:58 | Link to Comment whaletail
whaletail's picture

+1

Tue, 11/09/2010 - 13:36 | Link to Comment Lucius Corneliu...
Lucius Cornelius Sulla's picture

Chosin Reservoir

Tue, 11/09/2010 - 11:37 | Link to Comment chinaguy
chinaguy's picture

It is obvious that China & the US struck a deal at the conference in Japan over the weekend & that it will play out thus: The US et al will make no substantive move against China at the G20 and China et al will make no substantive move against QE2.

That said, now both sides have to bluster to appear "honest".

The net result will be a weaker dollar & China doing as it wishes.

 

 

 

Tue, 11/09/2010 - 11:58 | Link to Comment crosey
crosey's picture

+1.  Agreed.

Tue, 11/09/2010 - 12:32 | Link to Comment chinaguy
chinaguy's picture

The exchange was reported in Bloomberg & frankly, I thought it (& it's ramifications) was the biggest news story in the past couple of weeks, but no one else picked up on it.

Tue, 11/09/2010 - 11:38 | Link to Comment tip e. canoe
tip e. canoe's picture

mysterious missle launch last night off the US west coast:

http://www.cbsnews.com/stories/2010/11/09/national/main7036716.shtml?tag...

George Ure is wondering if it might be China.   crazy tinfoil?  perhaps, but gold & silver is telling us something well beyond QE2.

Tue, 11/09/2010 - 11:46 | Link to Comment Argos
Argos's picture

I saw that article too.  Very strange really.  The Navy was quick to deny any launch.  Well, if it wasn't the U.S. Navy launching from a sub, which Navy was it?

Tue, 11/09/2010 - 12:01 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

The above event is more than a wee bit disconcerting after just reading One Second After.

http://www.amazon.com/One-Second-After-William-Forstchen/dp/0765317583

Tue, 11/09/2010 - 12:25 | Link to Comment HarryWanger
HarryWanger's picture

It was nothing more than a jet contrail. Happens frequently and depends upon angle of view and lighting.

Tue, 11/09/2010 - 12:40 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

We all know that is not true.  I pray that your cruel statement will not achieve its intended result.

This submarine launched ICBM is a ransom note.  Plain as day.  The negotiations, like all ransoms, are being conducted in secrecy.

Tue, 11/09/2010 - 12:41 | Link to Comment HarryWanger
HarryWanger's picture

Not cruel. Here, read this: http://contrailscience.com/a-problem-of-perspective-in-the-oc-new-years-...

Clearly a jet contrail. No question about it.

Tue, 11/09/2010 - 12:50 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

Fine to read Harry's site and watch the video before making your own decision, but then make sure you read this, too, friends.

http://www.onesecondafter.com/pb/wp_194d9c9d/wp_194d9c9d.html

Tue, 11/09/2010 - 13:05 | Link to Comment RobD
RobD's picture

If that was a jet contrail they better be looking for it to see if it had a rocket strapped to its ass becouse there is no dought that that was rocket propelent not jet fuel spewing out. 6 year Navy vet here and I've seen my share of rockets and jets and the only plane currently in the inventory that uses rocket assest is the C-130s and they only use them for take off from short runways and that was no C-130. If the US Navy does not come out and clame this as one of there own Obama is going to have some explaining to do when/if he gets home.

Tue, 11/09/2010 - 13:43 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

My guess is it landed in very deep water (Marianas Trench?) to drown the smell of kimchi.

In what I am not so sure is totally unrelated news, Carnival Cruise liner off of So Cal loses all power yesterday and needs to be towed in:  http://www.cbsnews.com/stories/2010/11/09/national/main7037086.shtml?tag=topnews

And also two Nuclear reactors are shut down within a half hour of each other:

http://homelandsecuritynewswire.com/two-nuclear-reactors-shut-down-sunday-because-problems

This tinfoil PASGT is starting to feel more and more comforting.

Tue, 11/09/2010 - 14:11 | Link to Comment OnTheFelt
OnTheFelt's picture

Oh Harry harry boy,

 

STFU!  Seriously, I'm so sick of you fucking shills.  Karma is a motherfucker asshole!  Your eventual payback will definitely be in spades.  Put that in your pipe!

Tue, 11/09/2010 - 20:30 | Link to Comment kiwidor
kiwidor's picture

Ransom note from whom?  the good guys or the bad guys?

No wait...there aren't any good guys left. 

Tue, 11/09/2010 - 12:47 | Link to Comment tip e. canoe
tip e. canoe's picture

harry, i see dozens of contrails a week from my vantage point on my roof.   UNLESS they're speeding up the video and playing around with after effects (see that orange glow in one of the shots), that was no jet.   with that said, i would like to hear some eyewitness reports just on the odd chance that a local TV station is digitally manipulating 'reality' for whatever reason.

Tue, 11/09/2010 - 13:11 | Link to Comment HarryWanger
HarryWanger's picture

If you look at the still photos from the site of the contrail it is very different from what the "news" shows. So, perhaps the news did manipulate the video to make a story out of nothing.

Tue, 11/09/2010 - 13:50 | Link to Comment cougar_w
cougar_w's picture

Nice try. But it's easier to manipulate a still image than a video.

Tue, 11/09/2010 - 13:51 | Link to Comment cougar_w
cougar_w's picture

Missile. Of some kind. Get over yourself.

Tue, 11/09/2010 - 13:24 | Link to Comment tahoebumsmith
tahoebumsmith's picture

And my son came in just after dark in No. Cal and reported seeing 2 stealth bombers flying overhead? I thought he was seeing things, however it was about the same time...just before dark???

Tue, 11/09/2010 - 13:35 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

There were Apache helicopters flying all around Houston last night.  I saw two myself.

Tue, 11/09/2010 - 14:50 | Link to Comment XPEH BAM
XPEH BAM's picture

Ellington Field.  Texas Army National Guard.  They train around Houston (even above downtown) very regularly.

Tue, 11/09/2010 - 13:55 | Link to Comment cougar_w
cougar_w's picture

Is he Air Force Reserve or Mil-Int? Professional pilot? Would he know a bomber of any kind if he saw one? Some people would think a private jet casting itself in shadow would qualify as a stealth bomber. Just say'n

Tue, 11/09/2010 - 11:40 | Link to Comment Careless Whisper
Careless Whisper's picture

h/t pedro

thanks pedro, what else u got for us?

 

Tue, 11/09/2010 - 11:40 | Link to Comment ebworthen
ebworthen's picture

Time to foment a war.

War with China, whether over Taiwan, North Korea, or in the Pacific; even a limited naval incident - would be reason to rescind our "debts" to them.

Problem solved.

No, I don't think this is a good idea, but it is I'm sure part of the contingency plan.

Tue, 11/09/2010 - 11:41 | Link to Comment Dick Darlington
Dick Darlington's picture

I guess their models allow negative numbers.

Tue, 11/09/2010 - 11:41 | Link to Comment Wu Qi Ming
Wu Qi Ming's picture

With the first down grade by Da Gong agency I told many of my friends living here in China that, "It's the first shot across the bow of a trade war."

The response was such that I was obviously a dim wit, "Da Gong aint no US credit rating issuer so pull your head in."

The subtleties in the Chinese approach are missed by many. I know from bitter personal experience, first they give you enough rope........

 

Tue, 11/09/2010 - 11:42 | Link to Comment PeterSchump
PeterSchump's picture

Time to start selling those crotch shots of Paris and Britney instead of giving them away for free on the internet.  Then we can even out the trade balance and have some good things start happening.  Short of that, I can't think of any way the U.S. can compete with a nation of a billion people whose youngsters actually believe in learning and building rather than sucking and f___ing for a living.

Tue, 11/09/2010 - 11:43 | Link to Comment Me XMan
Me XMan's picture

Who the heck is DA GONG? Is that the dude from the GONG show?

Tue, 11/09/2010 - 11:44 | Link to Comment His Dudeness
His Dudeness's picture

Man with fly down have problem with gong showing...

Tue, 11/09/2010 - 11:52 | Link to Comment Me XMan
Me XMan's picture

HAHAHAHAHA!! Just made my day!

Tue, 11/09/2010 - 11:43 | Link to Comment His Dudeness
His Dudeness's picture

Fan, meet shit:

Tyler,

You always maintain your civility of introduction. English breeding? Charm school?

Tue, 11/09/2010 - 11:46 | Link to Comment williambanzai7
williambanzai7's picture

Does anyone remember the fretting that went on in the Summer of 2008 over the GSEs? Pulled the wool over on that close call eh? Now, look what is coming back around. 

The US is about to learn just how hard it is to fuck a Chinaman.

Tue, 11/09/2010 - 11:56 | Link to Comment His Dudeness
His Dudeness's picture

WBInfinity: Born 198_ Died 20__

Artistic talent and word smith, caring individual, frequent contributor of: −459.67°F Bush (formerly Zero Hedge).

0-700 in attempts to have sex with a Chinaman. Passed on this information freely November 9, 2010.

Tue, 11/09/2010 - 11:48 | Link to Comment RobD
RobD's picture

What got the DXY positive?

Tue, 11/09/2010 - 11:52 | Link to Comment uno
uno's picture

well China get ready to see a lot more of our warships in the South China Seas.

Tue, 11/09/2010 - 11:53 | Link to Comment Me XMan
Me XMan's picture

China got nukes correct?

Tue, 11/09/2010 - 12:09 | Link to Comment tmosley
tmosley's picture

And they have more warships than us.

And we can't detect their subs, even when they are within striking distance of our carriers.

Tue, 11/09/2010 - 11:55 | Link to Comment Thunder Dome
Thunder Dome's picture

U.S. playing this card while it still can support its military.  Don't have to pay debts if you're the biggest bully on the block.  Just ask Tony Soprano.

Tue, 11/09/2010 - 12:08 | Link to Comment SheepDog-One
SheepDog-One's picture

I think anyone who thinks we now go and bully China around militarily has their head in the clouds. Or someplace far more stinky. I just left the US Navy, the Chinese now routinely surface their new subs (the ones we cant detect) right in the center of US carrier groups, much to admirals and top brass' surprise.

This idea we go boss around China with our military is a desperate pipe dream, far from reality.

Tue, 11/09/2010 - 12:24 | Link to Comment Pants McPants
Pants McPants's picture

++++  Exactly right. 

You'd think the collective US boner for their military would have been stunted a bit by our inability to subdue a "buncha pissed off ragheads with AK 47s and a few RPGs"

You are right about Chinese subs, too.  I spent some time operating in that area - Japanese subs are equally proficient.  Diesels are undetectable.

Tue, 11/09/2010 - 12:33 | Link to Comment DaveyJones
DaveyJones's picture

I find it funny how we concede that they have "caught up" making all sorts of things but deny that they could produce a competitive military 

Tue, 11/09/2010 - 12:34 | Link to Comment Thunder Dome
Thunder Dome's picture

Well that sucks!

Tue, 11/09/2010 - 12:51 | Link to Comment Bob
Bob's picture

I just left the US Navy, the Chinese now routinely surface their new subs (the ones we cant detect) right in the center of US carrier groups

You're serious?  So much for cowering Chinaman, eh?

Tue, 11/09/2010 - 11:53 | Link to Comment Thunder Dome
Thunder Dome's picture

Eat shit China.  Big helping on the way.

Tue, 11/09/2010 - 11:53 | Link to Comment demsco
demsco's picture

blow-off top in silver? Commodities in a bubble? Gold is not money, but is accepted as collateral? Right. How many times do the "precious metals are in a bubble" crowd have to be wrong before they shut up??? Will metals always go higher? No, but wither will stocks, psst, look at the 10 year return on the S&P 500. However, silver is in demand, industrial and investment, with the Fed printing like madmen, this is bullish for silver, but all metals will benefit. Get a clue man. Just because you missed the ride you want to talk down metals, that ain't my fault. Hell, I missed the ride in Amazon.com, but do you hear me whining about it? No, because I am up 120% in silver, dumbasses. 

Tue, 11/09/2010 - 11:57 | Link to Comment Gimp
Gimp's picture

You mean we can't print monopoly money to pay-off our debt!

Ponzi coming apart at the seams.

Tue, 11/09/2010 - 12:03 | Link to Comment bankonzhongguo
bankonzhongguo's picture

I may be interesting to watch if the Fed directly buys China's UST as part of QE2.  Even a de minimis change in China's exposure would signal an important move.  Yet, China sells us stuff and we give them more paper. Priceless.

Tue, 11/09/2010 - 12:06 | Link to Comment Elk peanus
Elk peanus's picture

Business Insider calls Dagong "rogue rating agency" in their headline

http://www.businessinsider.com/dagong-downgrades-us-credit-rating-2010-11

Tue, 11/09/2010 - 12:06 | Link to Comment zabaneh atashin
zabaneh atashin's picture

My Lovely Chinese please do not play with the LION TAIL!!!

Tue, 11/09/2010 - 12:10 | Link to Comment SheepDog-One
SheepDog-One's picture

LOL dream on.

Tue, 11/09/2010 - 12:08 | Link to Comment HarryWanger
HarryWanger's picture

"Shit meet fan."

Hardly. Another meaningless "downgrade" of debt by the fools who keep buying it up. Haven't you guys learned by now that this type of rhetoric has been going on for decades? 

"well, it's on, ladies and gents."

What's on, the same bullshit rhetoric that we've heard forever? Come on. You know this is meaningless as does the market.

Tue, 11/09/2010 - 12:11 | Link to Comment SheepDog-One
SheepDog-One's picture

'This rhetoric has been going on for decades'? Liar. Nothing like this has been going on at all.

Tue, 11/09/2010 - 12:08 | Link to Comment uno
uno's picture

Is this a bad time to sell China some more of our MBS.  Fannie and Feddie are good for it.

Tue, 11/09/2010 - 12:09 | Link to Comment shushup
shushup's picture

If you don't read Zerohedge then you don't even know that this happened, so how could there be a reaction?

Tue, 11/09/2010 - 12:43 | Link to Comment HarryWanger
HarryWanger's picture

No offense but it's sort of like a National Enquirer story. Did you read that report? It's nothing but silly rhetoric and meaningless. A non-story. That's why you won't read it anywhere else.

Tue, 11/09/2010 - 12:10 | Link to Comment buzlightening
buzlightening's picture

Now the 800 pound gorilla goes ape shit on bendover/tiny timmy before the goonzi20 even begins in Seoul! Perhaps the porkin U.S. pigmen feeding at the trough of U.S. citizens  are in for a real bitch slappin!  Don't think a new shade of lipstick goon-a keep China from ape shitting all over the dead head fed U.S. harbored goons!!!

Tue, 11/09/2010 - 12:14 | Link to Comment SheepDog-One
SheepDog-One's picture

Yep, and basically the entire White House and thousands of entourage are over partying in sub Asia or wherever, no one really knows why....I think all this was known beforehand and staged. Setting up for a big conflict.

Tue, 11/09/2010 - 12:12 | Link to Comment lolmao500
lolmao500's picture

Remember this :

http://rawstory.com/news/afp/China_s_development_strategy_shift__0518201...

US Treasury Secretary Timothy Geithner said Tuesday that export-driven China was shifting its development strategy to rely more on domestic consumption, a move he described as "encouraging."

 


Tue, 11/09/2010 - 12:18 | Link to Comment Fearless Rick
Fearless Rick's picture

Let's get real. China's rating is purposeful, to make Bernanke think twice about QE2. They are not the only ones complaining either and the upshot is that Uncle Bengie may have to backtrack a bit on his "endless printing wet dream."

Note the stock markets at a standstill for two days now, gold, silver and other commodities skyrocketing, condemnation from all sides against Bernanke. The Dagong downgrade is another knife-wound to the Fed, which is well-deserved, and then there's the coming shit-storm from Rand Paul, Mike Lee and the Tea partiers. Check out the PBS Newshour, where Lee says explicitly he will vote against raising the debt ceiling and Rand Paul's comment about cutting federal salaries by 10%, followed by Jim Demint saying government workers make 50% more than the private sector..

http://www.pbs.org/newshour/bb/politics/july-dec10/teaparty_11-08.html

Bernanke's goose be cooked, bitchez!

Tue, 11/09/2010 - 12:56 | Link to Comment Lucius Corneliu...
Lucius Cornelius Sulla's picture

+1

Monetization = default.  Creditors are not going to take it sitting down.

Tue, 11/09/2010 - 12:24 | Link to Comment Fearless Rick
Fearless Rick's picture

Here's a little piece of the transcript from the video. Nice!


CHRISTIANE AMANPOUR, host, "This Week With Christiane Amanpour": Give me one specific cut, Senator-elect.

RAND PAUL: All across the board.

CHRISTIANE AMANPOUR: One significant one. No, but you can't just keep saying all across the board.

RAND PAUL: Well, no, I can, because I'm going to look at every program, every program.

But I would freeze federal hiring. I would maybe reduce federal employees by 10 percent. I would probably reduce their wages by 10 percent.

Tue, 11/09/2010 - 13:36 | Link to Comment Cruel Aid
Cruel Aid's picture

Paul puts up a no brainer. It is the only fair austerity solution. How can they squawk about this.

Tue, 11/09/2010 - 12:45 | Link to Comment trgfunds
trgfunds's picture

Boring... Nuke Washington DC, then put signs everywhere saying "We are here to help" or I turn the channel. Over it.

Tue, 11/09/2010 - 12:49 | Link to Comment Lucius Corneliu...
Lucius Cornelius Sulla's picture

In my view, the main take away from this is the amount of pressure being applied against any further monetization.  It will be very difficult for the FED to continue its policy ... and its not just the Chinese who are pissed.  Its most of the world and many domestic critics.  QE will be limited, de-leveraging will continue, IMHO.

Tue, 11/09/2010 - 13:08 | Link to Comment waterdog
waterdog's picture

It appears Geithner's last trip to China did not go very well.

 

Tue, 11/09/2010 - 13:10 | Link to Comment sethstorm
sethstorm's picture

Then downgrade China, or bring up the human rights issues that keep on being swept under the rug.

Tue, 11/09/2010 - 14:09 | Link to Comment Anarchist
Anarchist's picture

Human rights??

Iraq, Afghanistan = mass murder, war crimes, crimes against humanity.....

The US has been pumping weapons and money into the Chinese and Iranian hinterlands attempting to trigger multiple civil wars. What if China decides to cause mischief in our thiefdoms around the world? Won't be pretty....

Tue, 11/09/2010 - 14:36 | Link to Comment MrTrader
MrTrader's picture

Just received an email from a friend who wrote an email :

TO MOODY´S, S&P and FITCH :

Gentlemen,

 

I don´t know what you are doing the whole day long . At least there is ONE CREDIBLE rating agency out there realistically is downgrading the sovereign debt of the US of A.

 

Maybe you want to stand up from your chairs and start doing your job ! Your credit ratings are not worth anymore the paper you are writing it on !

 

http://www.dagongcredit.com/dagongweb/uf/USARatingReport.pdf

 

Tue, 11/09/2010 - 14:38 | Link to Comment trav7777
trav7777's picture

Just a bunch of bullshit...China steals wantonly, respects no IP...downgrade them to D-

Thu, 01/06/2011 - 12:28 | Link to Comment LDW
LDW's picture

Thanks for this report. It provides a macro-economic view on what is going on and how it affects businesses large and small including custom web design companies.

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