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Dagong Rating Agency: "The US Has Already Defaulted"

Tyler Durden's picture




 

The soundbite of the day comes from AFP which quotes the infamous Chinese Rating Agency Dagong, known for being a little too truthy, which told state media Global Times what everyone already knows but is afraid to say out loud: "'In our opinion, the United States has already been defaulting....Washington had already defaulted on its loans by allowing the dollar to weaken against other currencies - eroding the wealth of creditors including China, Mr Guan said." Oddly enough, this contradict Tim Geithner's heartfelt appeal that the US is pursuing a strong dollar policy. The Dagong announcement follows on the heels of various reports from earlier this weeks (most notably the SAFE announcement which was subsequently pulled) which are urging China to not only pull its US holdings, but to minimize its USD exposure in total. Now if only Moody's would opine on the stealth 1.5 TARP Chinese bailout we noted earlier this week, then the full out credit rating cold war would be on like Donkey Kong.

Full report from AFP:

A CHINESE ratings house has accused the United States of defaulting on its massive debt, state media said on Friday, a day after Beijing urged Washington to put its fiscal house in order.

'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, Mr Guan said.

Mr Guan did not immediately respond to AFP requests for comment. The US government will run out of room to spend more on August 2 unless Congress bumps up the borrowing limit beyond US$14.29 trillion (S$17.57 trillion) - but Republicans are refusing to support such a move until a deficit cutting deal is reached.

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

 

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Fri, 06/10/2011 - 09:01 | 1357445 margaris
margaris's picture

you chose the perfect picture for this post.

How did it go? Did you first write this post and THEN search for a suitable picture?

 

Or did you find the picture first, and thought... hm... that inspires me to write a nice article

Fri, 06/10/2011 - 09:05 | 1357486 Dapper Dan
Dapper Dan's picture

Speaking of pictures, how far away is China from the area in this photo posted below?

http://pointscope01.jp/cgi-local/f1np/f1np1/imageview.cgi?mode=past_frame

Check out the date of photo.

Fri, 06/10/2011 - 09:08 | 1357503 redpill
redpill's picture

Not far enough.

The willfully ignored/forgotten Fukushima disaster continues unabated, and eventually the full scope will force itself into the currency markets like DSK on a hotel maid, not to mention irradiate the island and everyone on it. The wobbly three-legged table that is the international currency market will crumble like a dry MOX fuel rod.

Fri, 06/10/2011 - 09:13 | 1357517 EscapeKey
EscapeKey's picture

Meanwhile, NFLX is still a strong buy, as Apple hurtles through $500.

Fri, 06/10/2011 - 11:51 | 1358114 kumquatsunite
kumquatsunite's picture

Exactly. And that means start your gardens....

 

AS to China, when you don't have enough food or enough water or enough medical supplies or enough of anything (China, Japan, India and Africa) what are you gonna do?

When you answer that question you've answered every question about the next ten years that you might have. And it ain't purdy....

Fri, 06/10/2011 - 09:09 | 1357505 ArgentDawn
ArgentDawn's picture

You will catch on to ZH's unique memes soon enough.

Fri, 06/10/2011 - 09:37 | 1357576 He_Who Carried ...
He_Who Carried The Sun's picture

"Washington had already defaulted on its loans by allowing the dollar to weaken against other currencies - eroding the wealth of creditors including China, Mr Guan said".

 

Why is this worth a commentary on ZH?

Its about as significant as that moment when a certain bag of rice suddenly fell over last week. Time is money, guys!

Fri, 06/10/2011 - 10:27 | 1357775 SheepDog-One
SheepDog-One's picture

Time is money? I thought you said opium is money?

MONEY is money!!

Fri, 06/10/2011 - 11:28 | 1358003 Pegasus Muse
Pegasus Muse's picture

"you chose the perfect picture for this post.

How did it go? Did you first write this post and THEN search for a suitable picture?"

Cute comment .... this pic goes perfectly with it:

 http://www.dailyhaha.com/_pics/clinton_poop.htm

Fri, 06/10/2011 - 08:55 | 1357446 HamyWanger
HamyWanger's picture

Then why does China continue to buy Treasuries???

Fri, 06/10/2011 - 09:00 | 1357462 SheepDog-One
SheepDog-One's picture

Hamy...I guess they just love us so much. BTW whats your proof they ARE continuing to buy any treasuries?

Fri, 06/10/2011 - 09:25 | 1357543 Cdad
Cdad's picture

I'm sure that the BlowHorn [CNBC] will shortly warn its viewers that flows are continuing into fixed income [on the fear trade signaled by the equity market...if not signaled by the VIX] so that folk do not get caught in the Pachinko S&P or the fractal algo'd NASDAQ.  This because the BlowHorn ALWAYS alerts its viewers when money is leaving the fixed income market announcing that the equity train is about to leave the station in a curiously thin and bouncy rally.

I'm sure any minute now, the BlowHorn will alert viewers to this fixed income trade.  Holding my breath...

Fri, 06/10/2011 - 10:29 | 1357763 SheepDog-One
SheepDog-One's picture

'Fixed income'....WOW the Blowhorn is roto-rootering new all time lows!

Fri, 06/10/2011 - 09:32 | 1357568 Nacho.Libre
Nacho.Libre's picture

You know, about three weeks ago I went to a luncheon put on by the Fed Bank of Dallas and the speaker was Fisher.  He told all the bankers, community leaders, and business leaders in the room that China was still buying our debt.  I didn't want to be escorted out, so I contained my very strong desire to stand up and yell "I call bullshit!". 

I think I saw Hamy there, so that's probably where he got the idea.

Fri, 06/10/2011 - 09:41 | 1357598 DaveyJones
DaveyJones's picture

What do a Fed Reserve speaker and Fukushima plant manager have in common?

Fri, 06/10/2011 - 10:41 | 1357813 Almost Solvent
Almost Solvent's picture

Public statements not intended to be truthful

Fri, 06/10/2011 - 09:44 | 1357600 Pladizow
Pladizow's picture

In honor of your avatar and corn hitting a multi year high:

http://www.youtube.com/watch?v=1kLBjdxVKbI

Fri, 06/10/2011 - 10:55 | 1357897 Nacho.Libre
Nacho.Libre's picture

Thank you.  And when you are a man, sometimes you wear stretchy pants...in your room.  It's for fun.

http://www.youtube.com/watch?v=N14Y81L4IXE&feature=related

 

Fri, 06/10/2011 - 09:00 | 1357467 kito
kito's picture

because there are no other viable options for them. damned if they do, damned if they dont.

Fri, 06/10/2011 - 09:08 | 1357489 SheepDog-One
SheepDog-One's picture

'No other viable options for them' really Kito prove China IS buying any Treasuries at all. I dont see a big sell off, but no increase in amount owned either.

Fri, 06/10/2011 - 09:10 | 1357494 Nepenthe
Nepenthe's picture

Beijing cut its holdings of US Treasury securities for the fifth month in a row to $1.145 trillion in March, down $9.2 billion from February and 2.6 percent less than October's peak of $1.175 trillion, US data showed last month.

Damned if you continue to play the contrarian moron...

Fri, 06/10/2011 - 09:29 | 1357553 kito
kito's picture

nepenthe, this is zerohedge, the site of contrarians.........

Fri, 06/10/2011 - 09:41 | 1357585 Nepenthe
Nepenthe's picture

Thanks for setting me straight- after reading your drivel I keep thinking I'm at yahoo finance. I realize now you aren't a contrarian, just a moron.

Fri, 06/10/2011 - 09:59 | 1357671 kito
kito's picture

nepenthe, keep that bag over your head, lest we all suffer from brain smoke inhalation.

Fri, 06/10/2011 - 10:32 | 1357635 SheepDog-One
SheepDog-One's picture

'The site of contrarians' mmm yessss Kito you get the 'Golf Clap and Chortle of the Day' award which is a monacle holster.

Fri, 06/10/2011 - 12:59 | 1358342 Founders Keeper
Founders Keeper's picture

 

A "monacle holster"? That was hilarious!

Thanks, SheepDog-One.

 

Fri, 06/10/2011 - 13:29 | 1358454 kito
kito's picture

your prize is generous, i will pass it to the one eyed king, who is busy having its yields trampled as the world is flocking to it today, as usual, when there is a flight to safety. whats gold been up to lately?

Fri, 06/10/2011 - 09:44 | 1357611 DaveyJones
DaveyJones's picture

and gold and farmland and rare materials and...

Fri, 06/10/2011 - 15:22 | 1358881 Things that go bump
Things that go bump's picture

The girls in Boise will be competing for all those nice Chinese boys.  This is actually an old trick.  Because of overpopulation and primogeniture, in the tenth century the Danes began colonizing northern Britain (by force).  After things had settled down a bit the Anglo Saxon girls found their new neighbors quite attractive.  They were wealthier, as they had taken a lot of the good land and they bathed more often then the Anglo Saxon men. The same thing happened in Normandy too.  William the Conquoror was a direct decendent of Rollo the Viking.  

Fri, 06/10/2011 - 09:02 | 1357475 lizzy36
lizzy36's picture

DIP financing.

Fri, 06/10/2011 - 09:19 | 1357519 hedgeless_horseman
hedgeless_horseman's picture

Perhaps the most absurd argument of Reaganomists was that we should not worry about growing public debt because it is being matched on the federal balance sheet by an expansion of public "assets."

 

http://mises.org/daily/1423

Do the chi.coms have a UCC filing on the Hoover Dam? 

I Love Lucy.

Fri, 06/10/2011 - 09:21 | 1357541 LawsofPhysics
LawsofPhysics's picture

Are we talking about the same Hoover damn that is currently below half-pool?  The pile of concrete isn't valuable, it is all the fresh water that used to be behind it.

Fri, 06/10/2011 - 09:33 | 1357548 hedgeless_horseman
hedgeless_horseman's picture

Write downs are so 20th century.

Mark to myth.*

 

 

* This accounting standard has been approved by the FASB.

Fri, 06/10/2011 - 15:11 | 1359003 Stuck on Zero
Stuck on Zero's picture

You misspelled it.  It's "Mark to mirth."

Fri, 06/10/2011 - 17:41 | 1359654 Bastiat
Bastiat's picture

or "mark to meth"

Fri, 06/10/2011 - 09:43 | 1357595 Urban Roman
Urban Roman's picture

They can BTFD in Lake Meade and get in on the fresh water boom.

 

Fri, 06/10/2011 - 09:19 | 1357526 redpill
redpill's picture

The Chinese are very good at the fiat funny money game. Perception is reality when peddling worthless paper.

Fri, 06/10/2011 - 10:01 | 1357668 Slim
Slim's picture

So if allowing your currency to depreciate it default...this is maybe the best pot calling kettle black example I've ever seen.

Fri, 06/10/2011 - 13:32 | 1358476 three chord sloth
three chord sloth's picture

Heh. Damn straight!

The only way it could be better is to accuse the US of mercantilism.

Fri, 06/10/2011 - 08:58 | 1357448 Bindar Dundat
Bindar Dundat's picture

Looks like the gloves are off!

Fri, 06/10/2011 - 08:56 | 1357454 the not so migh...
the not so mighty maximiza's picture

Dagong, we are good for it, trust us.

Fri, 06/10/2011 - 09:01 | 1357470 bigdumbnugly
bigdumbnugly's picture

"we will gladly pay you tuesday for some more cheap imports today."

 

Fri, 06/10/2011 - 08:57 | 1357455 Conrad Murray
Conrad Murray's picture

How dare they so flagrantly assassinate our character. Let's show them what default really looks like.

Fri, 06/10/2011 - 09:00 | 1357456 redpill
redpill's picture

Just another shot fired in the currency war.

Fri, 06/10/2011 - 09:00 | 1357466 ursus.peracto
ursus.peracto's picture

Money$hot?

Fri, 06/10/2011 - 09:24 | 1357549 aheady
aheady's picture

lulz

Fri, 06/10/2011 - 08:59 | 1357463 ursus.peracto
ursus.peracto's picture

"Washington had already defaulted on its loans by allowing the dollar to weaken against other currencies - eroding the wealth of creditors including China, Mr Guan said."

Ron Paul said this nearly verbatim the other day.

Fri, 06/10/2011 - 09:04 | 1357469 SheepDog-One
SheepDog-One's picture

And just think, the ONLY answer any of them have to the present deteriorating economic situation is to weaken the dollar further.

Fri, 06/10/2011 - 09:08 | 1357487 buzzsaw99
buzzsaw99's picture

China ain't seen nothin' yet.

Fri, 06/10/2011 - 10:48 | 1357848 rufusbird
rufusbird's picture

Exactly!, and Neil Barofsky says he is scared now...

Fri, 06/10/2011 - 09:52 | 1357630 DaveyJones
DaveyJones's picture

it is their only gameplan, it is their only answer. Problem is these idiots think nobody is on to them. Problem is these idiots don't realize two (or twenty) can play that game

Fri, 06/10/2011 - 09:42 | 1357589 Chump
Chump's picture

Well Ron Paul is obviously just a fucking commie terrorist.

Fri, 06/10/2011 - 09:00 | 1357465 plocequ1
plocequ1's picture

This is bullish for Nintendo

Fri, 06/10/2011 - 09:03 | 1357483 snowball777
snowball777's picture

The Weeeyooooo starting at $899.95

Fri, 06/10/2011 - 09:04 | 1357468 dognamedabu
dognamedabu's picture

Donkey Kong. Got me thinking..When the Japanese were taking over the world at least they gave us some decent video games.

 

 

Fri, 06/10/2011 - 09:02 | 1357474 SheepDog-One
SheepDog-One's picture

I never bought that 'Japan is taking over the world' simply because they were making cars and bought a golf course in CA.

Fri, 06/10/2011 - 09:08 | 1357488 ursus.peracto
ursus.peracto's picture

Our contributions are Ron Jeremy and Duncing with the Stars.

Fri, 06/10/2011 - 10:00 | 1357640 DaveyJones
DaveyJones's picture

Don't forget Lindsey Lohan. I've decided that Lindsey is the ultimate american avatar. The dark side of disney for beneath that polished mainstreet and similing mouse lies an immature, ignorant, and abused generation, well past its prime, addicted to oil, debt and denial.

Fri, 06/10/2011 - 13:01 | 1358366 Founders Keeper
Founders Keeper's picture

[I've decided that Lindsey is the ultimate american avatar.]---DaveyJones

Nice post, Davey.

 

Fri, 06/10/2011 - 16:46 | 1359461 Cathartes Aura
Cathartes Aura's picture

and don't forget that WINNING chucky sheen.

Fri, 06/10/2011 - 09:18 | 1357522 dick cheneys ghost
dick cheneys ghost's picture

China has no "brands" and buys their military ships from Ukraine........

Is the CIA behind this dust up btw Vietnam and China? Lets see how China reacts....

 

http://www.bbc.co.uk/news/world-asia-pacific-13727822

 

Fri, 06/10/2011 - 09:30 | 1357556 LawsofPhysics
LawsofPhysics's picture

Of course, China's people are it's strength and weakness.  Stir the pot in their own back yard and give them something to think about, this has been the real American foreign policy since the creation of the Fed.  All the market nonsense means nothing.  When people get hungry and start to starve (regardless of the country), that is when the shit hits the fans.  Yeah, we defaulted, I guess I need to jack up the price of the soybeans we have been selling to China. China still needs to eat.

Fri, 06/10/2011 - 16:42 | 1359402 thriftymost
thriftymost's picture

China is pretty much self-sufficient in food.  Trust me, I live here.  Outside the big cities, it's one vast expanse of farmland out there.  Food enough to feed a billion plus people?  Hell yeah.  Easily.

There are problems here, to be sure, but hunger isn't one of them.  America, with its factory farms and just-in-time deliveries and so on, is in reality much, much closer to the edge, where food is concerned.

Fri, 06/10/2011 - 09:39 | 1357574 Urban Redneck
Urban Redneck's picture

No, the CIA isn't behind it the PLA is behind it.  75% of the world's maritime boundaries are undetermined/disputed.  The sad thing is that when the JDA is signed between China and Vietnam, development will be handed to CNOOC, Sinopec, or PertroChina.  So all China is achieving is a bigger % (lower cost) of the same oil it will receive anyway.

Fri, 06/10/2011 - 09:05 | 1357473 Arnolds Love Child
Arnolds Love Child's picture

So London/NY bitch slap metal.

Fri, 06/10/2011 - 09:05 | 1357476 snowball777
snowball777's picture

OH SNAP!

Fri, 06/10/2011 - 09:06 | 1357482 buzzsaw99
buzzsaw99's picture

Bang Dae Ho

Long Guan Silver

 

they should have bought NFLX bitchez!

Perhaps buy some advice from CRM?

 

Fri, 06/10/2011 - 09:08 | 1357484 RobotTrader
RobotTrader's picture

Meanwhile, the Treasuries are rallying again with the 5-yr. yield plunging to 1.57%.

Gold is getting destroyed, but "investors" are clamoring for LULU, up $5 pre-market on blowout earnings.

Fri, 06/10/2011 - 09:06 | 1357493 SheepDog-One
SheepDog-One's picture

You got your last stupid LULU posts pulled from the other article go check it out.

Fri, 06/10/2011 - 09:13 | 1357508 Johnny Lawrence
Johnny Lawrence's picture

Considering LULU's down 13% over the last month, maybe some people will make a portion of their money back.

Fri, 06/10/2011 - 09:12 | 1357513 SheepDog-One
SheepDog-One's picture

LOL, 'upside only' MomoFader strikes again.

Fri, 06/10/2011 - 09:20 | 1357530 Internet Tough Guy
Internet Tough Guy's picture

Time to short LULU. Last time Momo pumped it it dropped 40%.

Fri, 06/10/2011 - 09:19 | 1357539 SheepDog-One
SheepDog-One's picture

'Gold destroyed'....wow yea Momo its almost off 1% from all time highs. Just shocking how much its 'destroyed'.

Fri, 06/10/2011 - 09:29 | 1357554 shortus cynicus
shortus cynicus's picture

all time highs

Nominal highs, in real terms we have plenty room to go.

Fri, 06/10/2011 - 09:38 | 1357571 razorthin
razorthin's picture

1% = destroyed?

LOL!

Fri, 06/10/2011 - 09:47 | 1357624 lieutenantjohnchard
lieutenantjohnchard's picture

meanwhile, the tzoo who the part time contract 1099 processor touted is down 45% or so from $103 to $59.

for the unvarnished and new at zh the part time contract 1099 processor known as robottrader is a serial  poster who has to post something on every thread to distract himself form the rapid destruction of his seed capital, which he fancied would lead him to a successful trading career.

Fri, 06/10/2011 - 10:11 | 1357713 DaveyJones
DaveyJones's picture

Can I have some of that destruction? Thank you sir may I have another

Fri, 06/10/2011 - 10:31 | 1357793 Dave Thomas
Dave Thomas's picture

Lets see, company that sells Yoga themed athletic apparrel to crazy suburban bitches?

Or a barbarous relic that has no place in modern economies?

Ahh Robo, you're like kitchy, franchised, corporate, 11$ rice burrito chain. Looks big but full of crap.

Fri, 06/10/2011 - 11:44 | 1358082 bIlluminati
bIlluminati's picture

Cramer is bullish on LULU. And we all know that means buy it on margin /sarc.

Fri, 06/10/2011 - 09:08 | 1357485 BorisSDT
BorisSDT's picture

My take on why now is the time to bail out of that sinking ship better known as the US...

 

http://www.singledudetravel.com/2011/06/now-is-the-time-to-move-abroad/

Fri, 06/10/2011 - 09:11 | 1357501 SheepDog-One
SheepDog-One's picture

Yea if youre so inclined, better move out now its basically 1937 Weimar. Im stickin around though, spoils galore in the making here.

Fri, 06/10/2011 - 09:24 | 1357544 hedgeless_horseman
hedgeless_horseman's picture

Agreed.

There is more wealth to be made in the destruction of a nation, than its creation.

                                       -Rhett Butler

Fri, 06/10/2011 - 09:50 | 1357637 falak pema
falak pema's picture

"Frankly my dear, I couldn't give a damn"...Rhett Butler...about what he said earlier...How perspectives change. Rich men don't die happy...That is the true lesson of 'Gone with the wind'... But rich women do! Especially after having written that block buster book!

Fri, 06/10/2011 - 10:18 | 1357722 DaveyJones
DaveyJones's picture

Ever seen that Carol Brunett clip where she comes down the stairs in the dress made out of curtains?

http://www.youtube.com/watch?v=k6bOpJ5elW8

The true American analogy - a ridiculous self parody

Fri, 06/10/2011 - 15:41 | 1359160 falak pema
falak pema's picture

she even had the curtain rod!

Fri, 06/10/2011 - 10:23 | 1357741 kekekekekekeke
kekekekekekeke's picture

ugh douchey American guys whining about American women are so lame. 

Fri, 06/10/2011 - 09:10 | 1357495 qussl3
qussl3's picture

They know the next crunch is coming and are trying to push the CNY as the safety trade.

Problem is they print even more than the US.

Fri, 06/10/2011 - 09:14 | 1357509 SheepDog-One
SheepDog-One's picture

Oh its NOT all just about currency trades at all, this is more about the threats from the UN that China and Russia better get in line with their wishes and approve invading Syria which both are refusing to do. Currency war is near over, nuclear exchange war is about to kick off. Prepare accordingly.

Fri, 06/10/2011 - 09:17 | 1357531 zaknick
zaknick's picture

Can't wait. Only way to get bitches like Tyler et al to continue believing that raping the world for their comfort is a mushroom cloud or two in a neighborhood near you!

Apocalypse Now + The Day After=

AmeriKKKa

Fri, 06/10/2011 - 09:11 | 1357498 TideFighter
TideFighter's picture

Bad Homburg Feri bangs DaGong.

US now toothless.

Fri, 06/10/2011 - 09:30 | 1357562 shortus cynicus
shortus cynicus's picture

Germany <--> China

The new Axis Of Evil.

 

Fri, 06/10/2011 - 16:56 | 1359500 Cathartes Aura
Cathartes Aura's picture

doubtful - with our chinese allies setting up shop across amrka. . .

AN UNUSUAL IDEA THAT MAY BECOME COMMON

Sinomach is not looking only at Idaho.

The company sent delegations to Ohio, Michigan and Pennsylvania this year to talk about setting up research and development bases and industrial parks. It has an interest in electric transmission projects and alternative energy as well.

The technology zone proposal follows a model of science, technology and industrial parks in China — often fully contained cities with all services included.

Read more: http://www.idahostatesman.com/2010/12/31/1472023/chinese-company-eyes-boise.html#ixzz1OuOuz57c

got mandarin?

Fri, 06/10/2011 - 09:12 | 1357506 scratch_and_sniff
scratch_and_sniff's picture

And another - German Rating agency Feri EuroRating also downgraded US to AA from AAA...citing " continued deterioration of creditworthiness due to public debt, inadequate fiscal measures, and weaker growth prospects". They are only small fish, but still.

Fri, 06/10/2011 - 09:13 | 1357507 gianakt
gianakt's picture

Oh No Italy wants to sell some of its Gold!!!

Fri, 06/10/2011 - 09:15 | 1357511 MonsterZero
MonsterZero's picture

When Apple moves their production out of China and into the US I'll care. But considering Amerikans don't have the skillset to work those factories I think we're a long ways off from catching up to China.

Fri, 06/10/2011 - 09:18 | 1357532 buzzsaw99
buzzsaw99's picture

skillset? funny. You're right, sniffing n-hexane requires specialized training. lulz

Fri, 06/10/2011 - 09:48 | 1357608 Bob
Bob's picture

That meme is a sadly funny one--we just need a better educated workforce able to compete globally! 

Bad news: Production jobs don't require significant education.  OJT is the reality.  How many of those Chinese workers have degrees or advanced skillz of any kind whatsoever?

But the prevailing meme about the US worker keeps the otherwise permanently unemployed busy and high on scammium for a few more years. 

Bullish on educational debt. 

Fri, 06/10/2011 - 09:15 | 1357515 zaknick
zaknick's picture

Here's looking at you Tyler Durden:

Michael Ruppert laments:

My country is dead. Its people have surrendered to tyranny and in so doing, they have become tyranny’s primary support group; its base; its defender. Every day they offer their endorsement of tyranny by banking in its banks and spending their borrowed money with the corporations that run it. The great Neocon strategy of George H.W. Bush has triumphed. Convince the America people that they can’t live without the ‘good things’, then sit back and watch as they endorse the progressively more outrageous crimes you commit as you throw them bones with ever less meat on them. All the while lock them into debt. Destroy the middle class, the only political base that need be feared. Make them accept, because of their shared guilt, ever-more repressive police state measures.

Fri, 06/10/2011 - 09:15 | 1357524 SheepDog-One
SheepDog-One's picture

Ooooo sorrryyy 'the neocon plan of Bush'? Had to screech to a halt there. So this all just started 10 years ago? Wow...just wow... Anyone who wrote that has got to be a fukin retard...'the plan' has been marching along for over 150 years culminating in whats playing out today.

Fri, 06/10/2011 - 09:22 | 1357546 zaknick
zaknick's picture

Actually, they had been stymied by real populist democrats before the civil rights movement made the KKK southernrrs break ranks and join the rethuglicans. "Rubbers" Bush was the front CIA bankster in charge of their resurgence and reducing the muddle class to the genocide supporters we see here today.

Mike Ruppert's site:

www.copvcia.com

Fri, 06/10/2011 - 09:43 | 1357555 SheepDog-One
SheepDog-One's picture

The KKK was always CIA from the start. The Nazi groups in america were started by the ADL. Democrats and republicans have always just been imaginary puppets to keep the sheeple in their pens. The central banker Rothschilds have been starting and funding both sides of all wars since before Napoleon. This is all new world order 101 stuff, and its been going on for many decades.

Fri, 06/10/2011 - 10:10 | 1357712 john39
john39's picture

if you look closely at the symbols used by the NWO, it becomes clear this fight goes back into the dawn of recorded history.  just because the masses have been brainwashed to ignore real history, does not mean the elites don't know it all to well.

Fri, 06/10/2011 - 10:21 | 1357750 SheepDog-One
SheepDog-One's picture

Yea absolutely, everyone wonders when the 'great deception' that will 'fool the whole world' is coming...its been right in front of everyones faces for centuries!

Fri, 06/10/2011 - 10:49 | 1357850 john39
john39's picture

if you read the signs and symbols, the time is very close.  much happening behind the scenes, which plays out the economic issues and wars. very difficult to determine if the NWO is coming apart, or suceeding in creating chaos.  order out of chaos was always the plan.  but chaos has a funny way of turning the tables on those who think they can control it.

Fri, 06/10/2011 - 10:54 | 1357878 LawsofPhysics
LawsofPhysics's picture

come on guys, don't buy into the two party crap.  We all know the truth.

 

http://i.imgur.com/D1xG5.jpg


Fri, 06/10/2011 - 11:09 | 1357727 i-dog
i-dog's picture

"The great Neocon strategy of George H.W. Bush "

Ruppert just lost all credibility with that howler!

The Neocons started out as D's under LBJ (well, actually, under the wing of his VP, Hubert Humphrey) then jumped ship to the R's when they saw that Nixon was going to win in 1968 (well, actually, Kissinger helped him to win while still a D!). They have been progressing steadily ever since under both R's & D's -- with such treacherous D luminaries as Brzezinski, Kissinger and Perle as well as the better-known warmongering R bunch of GHWB, Rumsfeld, Cheney, et al.

They have no allegiance to either party ... only to the globalist oligarchy.

Fri, 06/10/2011 - 09:12 | 1357516 Dick Darlington
Dick Darlington's picture

In the traditional rating agency universe, S&P today said that France downgrade likely by 2020 without reforms. I guess Dagong has not received the rating agency emergency Kool Aid package... Whether to laugh or cry, u decide.

Fri, 06/10/2011 - 09:44 | 1357599 SheepDog-One
SheepDog-One's picture

'By 2020' yea I love these date projections, if theyre saying 2020 expect it within 3 weeks.

Fri, 06/10/2011 - 09:19 | 1357525 steve from virginia
steve from virginia's picture

This is so funny I can't stand it.

Basically China sucks (it's a cardboard and spit- fake version of the United States) except for childishly honest Dagong.

Dagong is Too precious! Get rid of Chinese modernity and keep Dagong for entertainment purposes, only.

The best thing for China would be for it to dump its US dollar holdings and its Treasuries. China is bankrupting itself b/c it expends the entire effort/energy of the country to manage the costs arising from its massive cash/credit hoard!

The cost of supporting dollar value is Chinese hyper-inflation leading to social dissolution. China is the fool in the 'Bernanke Market'. China importing dollars is the same as China importing some nice 'glow-y' rocks from somewhere in Japan.

Of course, dumping the dollar would be painful for China, yadda yadda so they will never do it. They will parade the clownish Daggone which will go out on TV somewhere and mutter. It's entertaining, but shtupit.

Let's all ZHers push China to dump the dollar. It would be good for China, good for the US (we would hurt for awhile but China has been a hedge that has far outlived its usefulness), good for the dollar and start the process of economic renewal.

Bullish for gold and silver too!

It's going to happen anyway. There is no way to escape.

Fri, 06/10/2011 - 09:30 | 1357565 magpie
magpie's picture

Motion to name biggest and emptiest Chinese satellite city "Bernank's Paradise".

Fri, 06/10/2011 - 09:47 | 1357596 Urban Redneck
Urban Redneck's picture

How about- New Detroit, less rusty than the rust belt, just as underutilized.

Fri, 06/10/2011 - 09:16 | 1357528 orangedrinkandchips
orangedrinkandchips's picture

TALK, TALK, TALK!

Fri, 06/10/2011 - 09:19 | 1357537 buzzsaw99
buzzsaw99's picture

+1 Public consumption only.

Fri, 06/10/2011 - 09:51 | 1357626 fuu
fuu's picture

The idiot convention. Which one of these words don't you understand?

Fri, 06/10/2011 - 09:18 | 1357533 rsnoble
rsnoble's picture

I have my own ratings agency, I downgrade the US and all the EU to "FFF-".

BTW--when I was 10 I spent all the money I made mowing lawns playing donkey kong at the arcade.  I won a Donkey Kong championship at 11 and still have the trophy and tshirt somewhere around here.

I wouldn't know what to do with an xbox lol. 

 

Fri, 06/10/2011 - 09:20 | 1357540 buzzsaw99
buzzsaw99's picture

I was right about the video games. LMAO!

Fri, 06/10/2011 - 09:49 | 1357632 rsnoble
rsnoble's picture

?? I guess you must've accused me of being a video game junkie somewhere?  That was 30 years ago.  You can't really believe all the bs I type, I didn't really apply at the mess hall lol.  I'm actually in pretty good shape here, just pissed cause the bottom dropped out of my future plans because this massive economic recovery ruined it.  If I want to bitch about it I will.

In the meantime i've built a small machine shop and foundry in the back of my barn.  I'm lucky I can get by doing odd jobs, many aren't. 

Fri, 06/10/2011 - 09:42 | 1357603 1100-TACTICAL-12
1100-TACTICAL-12's picture

I used to make good mowing yard's. We would slip over to Oklahoma & buy beer, it was 3.2 schaffer light but it did the trick. Oh well no mowing job's for kids around here, Mexican's have it sowed up..

Fri, 06/10/2011 - 09:35 | 1357567 Oh regional Indian
Oh regional Indian's picture

china says

one notch down

the ringmaster 

is now the clown

 

ORI

http://aadivaahan.wordpress.com/2011/06/09/anniversary-thoughts/

Fri, 06/10/2011 - 09:58 | 1357649 Bob
Bob's picture

Hey, Happy One Year, ORI!  Nice post. 

http://aadivaahan.wordpress.com/2011/06/09/anniversary-thoughts/

Sat, 06/11/2011 - 00:47 | 1360628 Oh regional Indian
Oh regional Indian's picture

Thanks and thanks Bob. Good to know you stop by. :-)

ORI

Fri, 06/10/2011 - 09:41 | 1357582 ina gadda da vida
ina gadda da vida's picture

in the meantime some rumor

IMF is selling gold in physical market due to their lending capacity running low

 

Fri, 06/10/2011 - 09:39 | 1357591 Cole Younger
Cole Younger's picture

Raising the debt ceiling and paying bills is meaningless of the U.S. credit worthiness. A 14 trillion dollar growing national debt tells the trues story. We have to borrow to pay the bills.

Fri, 06/10/2011 - 09:44 | 1357609 SheepDog-One
SheepDog-One's picture

And $14 trillion is only the imaginary operating number for 'public consumption'. Real debt by any measure is actually $70 trillion, unfunded liabilities adds another $100 trillion, and derivatives losses come to another $1,000 trillion minimum.

Fri, 06/10/2011 - 10:30 | 1357769 luk427
Fri, 06/10/2011 - 12:32 | 1358274 SilverDosed
SilverDosed's picture

I think derivatives markets are actually much higher, my theory is people dont like saying the word quadrillian.

Fri, 06/10/2011 - 09:41 | 1357601 Catherine007
Catherine007's picture

the Swiss air is polluted with Bilderbergers - constant choppers flying over. So annoying.

I believe they could not fly their private jets into St Moritz. 

Fri, 06/10/2011 - 09:48 | 1357612 SheepDog-One
SheepDog-One's picture

You guys over there out in the thousands protesting the bums? Or just annoyed by the choppers?

Fri, 06/10/2011 - 09:57 | 1357661 Catherine007
Catherine007's picture

Protesting is tomorrow. F%ck these %assholes.

Fri, 06/10/2011 - 10:30 | 1357786 SheepDog-One
SheepDog-One's picture

Good I hope theyre surrounded by protestors calling these parasites out.

Fri, 06/10/2011 - 10:02 | 1357673 Dapper Dan
Dapper Dan's picture

The last thing the Chinese want to do is hurt the USA,  but it is still on their list of things to do.

New up date: From NHK news.

Radiation in No. 3 reactor too high for work

The operator of the damaged Fukushima Daiichi nuclear poisoning plant says radiation levels in one of the reactor buildings remain too high for workers to do their jobs. They won't say which one, so the workers are allowed to pick the reactor they would like to work in. Tepco will not be responsible if workers pick the wrong one.

Tokyo Electric Power Company, or TEPCO, sent 9 workers into the No.3 reactor building for about 20 minutes on Thursday, in a bid to start stabilizing the reactor. only 3 came out.

The utility plans to inject unused radiated milk into the containment vessel to prevent accumulated hydrogen from causing an explosion. It also intends to install a Karaoke system to keep the workers focused on the difficult task at hand.

The workers withdrew after measuring radiation of 100 millisieverts per hour near the reactor's containment vessel. The workers have been told to disregard radiation readings as they are transitory.

 

Fri, 06/10/2011 - 10:05 | 1357681 Weimar Ben Bernanke
Weimar Ben Bernanke's picture

East Asia is going to be a scene of some conflict. For the last two years, a quiet showdown has played out over the South China Sea, the body of water bordered by China, Vietnam, Malaysia, Singapore, Indonesia, Brunei, the Philippines, and Taiwan. This little-known body of water is of vast strategic importance: Fully one-third of the world's maritime trade traverses the South China Sea, and some optimistic estimates of its untapped stores of oil and natural gas would make it a second Persian Gulf. The South China Sea is also a major highway linking the oil fields of the Middle East and the factories of East Asia, with more than 80 percent of China's oil imports (and large percentages for Japan and South Korea as well) flowing over its waters.  Due to these waters' importance, several countries -- Brunei, Malaysia, the Philippines, and Vietnam -- claim sovereignty over part of these waters. Yet China claims rights of sovereignty over almost the entire South China Sea, as detailed in the "9-dash line" included in its submission to the United Nations.

There is an arms race going on and sooner and later China will be at war with its neigbors over the oil in the South China Sea.Also do not forget Mongolia has alot of untapped oil and natural gas reserves that China wants. Before China can be taken seriously as a superpower it needs a blue water navy,aircrat carriers,and better technology. China sees it neighbors as potential vassal states. So we will sea an ASEAN-China war in  a couple of years.

Now you may ask why China may want to help the EU when it is falling apart. China wants the EU arms embargo against it lifted. It wants enough clout and influence to do it. In my opinion the EU is doomed for failure and not even China could save it. But China will try.

China wants control of the South China Sea but the ASEAN allaince stands it its way. We will see if China can live up on its hype. China needs oil and will do whatever it takes to get it. But this could be its downfall. Economically they are heading towards deep inflation and will need a war or conflict to direct the blame. China is not crazy enough to go to war with us because they will get spanked. But it will want to take control over the nations like Vietnam, Brunei, Malaysia etc to be its colonies. China's military buildup is not for us but for its neighbors.

 

Fri, 06/10/2011 - 10:35 | 1357771 i-dog
i-dog's picture

-1. (Too many things to contradict to bother with a detailed reply).

Is that all from your Santa's Wish List?

Fri, 06/10/2011 - 10:11 | 1357703 AldoHux_IV
AldoHux_IV's picture

Although I am not an outright Austrian as any school is limited to just its bias, the economic thought I despise the most are Keynesians and the Keynesian cancer infects all and will end those economies with policymakers who embrace it. My hope is that from the ashes of nazi-regime like institutions and failed economic theories will arise a system that will help keep balance and open prosperity for all those who seek it.

In the meantime, debt will need to be destroyed.

Fri, 06/10/2011 - 10:27 | 1357762 RafterManFMJ
RafterManFMJ's picture

1. Never get high from your own supply.

2. Never be a creditor to your junkies.

3. Don't talk about fight club.

Fri, 06/10/2011 - 11:02 | 1357826 PulauHantu29
PulauHantu29's picture

 

But....but...but...Timmy told me two years ago and last year again and again "the dollar is strong...nothing to worry about....."

What's going on?

How QE works by Creditwritedowns.com:

http://www.creditwritedowns.com/2011/03/how-quantitative-easing-really-w...

 

Fri, 06/10/2011 - 11:54 | 1358108 Jerry Maguire
Jerry Maguire's picture

Rather than defaulting stealthily, why not just do it explicitly, for everyone not just the government, by a constitutional amendment?

See this, and follow the links:

http://strikelawyer.wordpress.com/2011/06/10/china-accusing-us-of-debt-d...

Fri, 06/10/2011 - 12:06 | 1358162 iPood
iPood's picture

Since they're pegged, does that mean Yuan denominated debt is in default?

Fri, 06/10/2011 - 13:16 | 1358410 kumquatsunite
kumquatsunite's picture

http://news.yahoo.com/s/telemundo/20110609/rss_telemundo_ts/mexicanaesse...

 

meanwhile, yahoo is starting to post articles in spanish on their main pages...stop it now, as well as stop immigration all of it! we are being reversed colonized and it won't be pretty; they are happy to shove you off the cliff...

Fri, 06/10/2011 - 15:09 | 1358996 Things that go bump
Things that go bump's picture

My young granddaughter just got her first job!  Yay!!!  It is at McDonalds.  The staff have offered to teach her Spanish, (several of the guys -  she is a very pretty girl, I bet they'd like to teach her Spanish), but I figure she will pick up a lot just working there.  

Fri, 06/10/2011 - 18:16 | 1359788 Cathartes Aura
Cathartes Aura's picture

with china building factory towns in Idaho, and maybe Ohio, Pennsylvania, Michigan, with no doubt more to follow, best be learning more than "spanish". . .

Fri, 06/10/2011 - 13:29 | 1358464 Big Ben
Big Ben's picture

So US Treasuries are a terrible investment? Wow! Who wudda thunk?

This is irrelevant however because most foreign governments are only purchasing them in order to manipulate exchange rates and indirectly subsidize their exports to the US. The Chinese seem angry that they can't earn a nice rate of return while they do their best to kill US exporters.

What is that old adage? Neither a borrower or a lender be.

Fri, 06/10/2011 - 16:40 | 1359411 asiafinancenews
asiafinancenews's picture

China might want to think about curing its own $260 billion default, before accusing the U.S. of same:

http://www.marketoracle.co.uk/Article28271.html

 

Tue, 07/26/2011 - 13:20 | 1495043 r101958
r101958's picture

What does it tell you when it is a Chinese rating agency that is actually telling it the way it is?

Do NOT follow this link or you will be banned from the site!