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China's Dagong Downgrades US To A- From A

Tyler Durden's picture





 

Since all US rating agencies (Fitch is majority French-owned) have been terrified into submission and will never again touch the rating of the US following the DOJ's witch hunt of S&P, any US rating changes on the margin will come from abroad. Like China's Dagong rating agency, which several hours ago just downgraded the US from A to A-, maintaining its negative outlook. The agency said that while a default has been averted by a last minute agreement in Congress, the fundamental situation of debt growth outpacing fiscal income and GDP remains unchanged. "Hence the government is still approaching the verge of default crisis, a situation that cannot be substantially alleviated in the foreseeable future."

Among the other Dagong zingers:

  • The partial U.S. federal government shutdown apparently highlights the deterioration of the government’s solvency, pushing the sovereign debts into a crisis status.
  • Since the outbreak of the U.S. debt crisis in 2008, the deviation between the federal government's sources of debt repayments and the country’s real wealth creation capacity has been constantly broadened. The huge amount of government debts that lack the basis of repayment always stands on the brink of default, and this situation is difficult to change in the long term. The federal government debt stock increased by 60.7% between 2008 and 2012 when the nominal GDP increased by only 8.5% while the fiscal income decreased by 2.9%, which indicates that fiscal income is losing its means as the primary source of debt repayments.
  • Liquidity has been continuously injected into international financial markets from the U.S., which indirectly plays a key role in combating against the risk of government default. This implicit debt default behavior infringes upon the benefits of creditors.
  • The debt ceiling has been extended continually, increasing the total amount of the federal government debts. In order to avoid the sovereign debt default, it becomes an inevitable choice for the U.S. government to repay its old debts through raising new debts. The fact that the debts grow faster than the fiscal incomes will further impair the federal government’s solvency.
  • The Democrats and the Republicans of U.S. do not have a consistent strategy target to solving the sovereign debt problem.

To be sure a Chinese rating agency is just that, Chinese, and its opinions are rooted in nationalistic pride as much as S&P and Moody's AAA take on the housing bubble in 2005-2007 were rooted in mathematical logic, but the implications of this latest shot across the bow by the country which last weekend said the time has come to strip the dollar of its reserve currency status, are clear. And, at its core, Dagong is correct: because all the US really has done is kick the can for another three months, something the domestic rating agencies would also admit if they were not terrified of expressing the truth.

The logic in the full Dagong release below is self-evident:

Dagong Downgrades the U.S. Sovereign Credit Ratings to A-

On October 16, 2013 EST, the U.S. Congress approves the resolution to end the partial government shutdown and raise the debt ceiling. By such means the U.S. Federal Government can avoid the default crisis for the moment. However the fundamental situation that the debt growth rate significantly outpaces that of fiscal income and GDP remains unchanged. For a long time the U.S. government maintains its solvency by repaying its old debts through raising new debts, which constantly aggravates the vulnerability of the federal government’s solvency. Hence the government is still approaching the verge of default crisis, a situation that cannot be substantially alleviated in the foreseeable future. In light of these facts, Dagong Global Credit Rating Co., Ltd. (hereinafter referred to as “Dagong”) decides to downgrade the local and foreign currency credit ratings of the U. S., which has already been on the negative watch list, to A- from A, maintaining a negative outlook. The rationale that supports the conclusion is as follows:

1. The partial U.S. federal government shutdown apparently highlights the deterioration of the government’s solvency, pushing the sovereign debts into a crisis status. The U.S. federal government announced its shutdown on Oct. 1, 2013, a radical event that reflects the liquidity shortage aroused by depleting stock of debts without the increase of new debts, directly resulting in the federal government lack of the funds for its normal function. The partial U.S. government shutdown is an inevitable outcome of its long-term failure to pay its excessive debts. During the fiscal years from 2008 to 2012, the ratio of the federal government’s stock of debts to fiscal income increased from 4.0 to 6.6. Under such circumstances, the federal government that can hardly sustain its own expenses, not mentioning collecting reliable income to cover its huge amount of debts. Substantial decrease of the U.S. government’s solvency is proven by this shutdown incident, which pushes the federal government into a crisis position of debt cliff and default.

2. Since the outbreak of the U.S. debt crisis in 2008, the deviation between the federal government's sources of debt repayments and the country’s real wealth creation capacity has been constantly broadened. The huge amount of government debts that lack the basis of repayment always stands on the brink of default, and this situation is difficult to change in the long term. The federal government debt stock increased by 60.7% between 2008 and 2012 when the nominal GDP increased by only 8.5% while the fiscal income decreased by 2.9%, which indicates that fiscal income is losing its means as the primary source of debt repayments. Because of the fact that the federal government now depends highly on borrowing new debts to repay its old ones, vulnerability of its debt chain is accumulated so that technically debt default may occur at any time. For the fundamentals of government debt repayment condition will not be essentially improved, the federal government's debt cliff will persist in the long term.

3. Liquidity has been continuously injected into international financial markets from the U.S., which indirectly plays a key role in combating against the risk of government default. This implicit debt default behavior infringes upon the benefits of creditors. In order to avoid the debt default caused by the lack of debt repayment sources such as fiscal incomes, the U.S. government has been taking advantage of the international currency dominance of the U.S. dollar to monetize its debts and has been taking quantitative easing monetary policy to maintain its government solvency since 2008. The devaluation of the stock of debts hereby directly damages the creditors’ interests. Dagong estimates that the depreciation of the U.S. dollar caused a loss of USD628.5bn on foreign creditors over the years of 2008 to 2012.

4. The debt ceiling has been extended continually, increasing the total amount of the federal government debts. In order to avoid the sovereign debt default, it becomes an inevitable choice for the U.S. government to repay its old debts through raising new debts. The fact that the debts grow faster than the fiscal incomes will further impair the federal government’s solvency. Ever since Obama’s inauguration in 2009, the U.S. Congress has extended the debt ceiling for five times, reaching a total volume of USD5.1tn. This further raise of the debt ceiling shows the government’s incapability of improving its solvency by improving the basic economic and fiscal elements.

5. The Democrats and the Republicans of U.S. do not have a consistent strategy target to solving the sovereign debt problem. As the issue of paying sovereign debts falls into a tool that the parties make use of to realize their own interests, the political environment is unfavorable for eliminating the risk of its sovereign debt default in the long term. The recurrence of the bi-partisan conflict over debt ceiling once again reveals the U.S. superstructure’s incapacity to solve national debt crisis. A debt crisis evolves into a political crisis, which in turn exacerbates the debt crisis. Such political
environment over debt repayment renders the dim and pale prospect of the U.S. federal government’s solvency.

 


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Thu, 10/17/2013 - 06:41 | Link to Comment NidStyles
NidStyles's picture

...and boom goes the dynamite...

Thu, 10/17/2013 - 07:04 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

So we'll print 100 trillion dollars and pay them off instantly....what are they bitching about?

 

If they would rather have Bitcoins....I'm sure we can work something out.

Thu, 10/17/2013 - 07:09 | Link to Comment Squid-puppets a...
Squid-puppets a-go-go's picture

methinks China figures it has acquired enough gold to flip the switch

I'm betting the US had agreed to enable said switch to be flipped a few months ago but are now going back on their word/delaying, so China has to agitate for it

 

Postscript: i think the Fed now realises that shadow banking black hole will forever prevent its attempts at hyperinflationary debt resolution, so the merch banks are under instruction to acquire phyz. So they need to keep the price down longer to get their own phyz on board before flipping the switch -  only this strategy will ensure that the US remains a counterbalance to China if gold goes exponential 

Thu, 10/17/2013 - 07:12 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Let's just hope Germany doesn't find out about it.....cause they're gonna be super pissed off!

Thu, 10/17/2013 - 07:59 | Link to Comment SWRichmond
SWRichmond's picture

effective propaganda is always built on  a base of truth.  since the US is so obviously lying about its debt conditions China can gain significant International credibility by simply telling the truth.  I agree with other posters here that the switch flip seems to be getting much closer.

Thu, 10/17/2013 - 08:33 | Link to Comment DeadFred
DeadFred's picture

Until they actually flip the switched it's all words, just as empty as Boehner's promises. What they're saying is that their country is holding over a trillion is assets that keep getting sketchier and are doing nothing about it. Sounds treasonous to me.

Thu, 10/17/2013 - 08:40 | Link to Comment youngman
youngman's picture

The smart people always say China will never dump their bonds because it will tank the price...and the will lose billions...I disagree...when China has enough gold that will go up in value when they do dump the bonds....they will flip the switch....and its coming soon....they know Obama is weak..so why not take advantage of him when he is in power.....I would...

Thu, 10/17/2013 - 08:57 | Link to Comment thecoloredsky
thecoloredsky's picture

At this point does China turn into a service industry and the US as a manufacturing industry economies? Made in the USA.

Thu, 10/17/2013 - 09:21 | Link to Comment Bendromeda Strain
Bendromeda Strain's picture

Keep dreaming - any manufacturing startup or repatriated plant has Obamacare and Green! regs to deal with.

Thu, 10/17/2013 - 09:25 | Link to Comment Ying-Yang
Ying-Yang's picture

Dagong it!

China is FED UP

Thu, 10/17/2013 - 09:06 | Link to Comment Element
Element's picture

I've been thinking the same thing about Abe. Japan has a huge stack of gold so what do they care about their fiat snuffing. Their debt snuffs too. It looks more like currency Hara-Kiri to me, or at least priming for it.

Thu, 10/17/2013 - 08:59 | Link to Comment Element
Element's picture

Most cogent credit re-rating text I've read. Visions of Colonel Nathan Jessup.

Thu, 10/17/2013 - 06:42 | Link to Comment GrinandBearit
GrinandBearit's picture

So this is what caused this morning golden boner. 

Sadly the gold boner has already retraced 1/3 of the initial gain.

These bankster criminals will do everything in their power to prevent gold going higher.

Thu, 10/17/2013 - 06:57 | Link to Comment All Out Of Bubblegum
All Out Of Bubblegum's picture

But it is nice to wake up to PMs getting monkeyhammered up for a change.

Thu, 10/17/2013 - 07:09 | Link to Comment GrinandBearit
GrinandBearit's picture

True.  

When I wake up in the morning and gold is up $100, then I'll start getting excited. 

 

Thu, 10/17/2013 - 07:25 | Link to Comment All Out Of Bubblegum
All Out Of Bubblegum's picture

I just hope I don't crap my pants when the day comes. At my age, it could happen.

Thu, 10/17/2013 - 07:28 | Link to Comment greatbeard
greatbeard's picture

>> At my age, it could happen.

Never trust a fart my friend.

Thu, 10/17/2013 - 07:30 | Link to Comment All Out Of Bubblegum
All Out Of Bubblegum's picture

I've gambled and lost once or twice.

Thu, 10/17/2013 - 09:24 | Link to Comment Bendromeda Strain
Bendromeda Strain's picture

You just need to redefine wins and losses... like Congress

Thu, 10/17/2013 - 07:47 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

So does this mean that the US is also a currency Gold manipulator?

<Say it ain't so Dagong, say it ain't so.>

CNBC article comedy of the morning. "Gold is so yesterday, the VIX is the new safe haven."

 

Edit. Silly me. Obviously I forgot the /sarc tag.

Thu, 10/17/2013 - 08:04 | Link to Comment sumo
sumo's picture

I remember past discussions here on ZH, about how the Fed had looked at using manipulation of VIX futures as part of its arsenal of "unconventional" policy measures.

The new safe haven? Yeah, muppets, step right up, everyone's a winner at Ben and Janet's ... got to be in it to win it ... step right up ...

Thu, 10/17/2013 - 09:26 | Link to Comment Bendromeda Strain
Bendromeda Strain's picture

VIX is the new safe haven? Beaker wept

Thu, 10/17/2013 - 06:51 | Link to Comment GVB
GVB's picture

You got to love the treasury market these days...

Thu, 10/17/2013 - 06:52 | Link to Comment Nex
Nex's picture

What a massacre Chinese do in FX. Small and medium mostly wiped out in 15 minutes. And nobody even know for that rating agency.xaxa

What will happen when china official said he will sell good amount of $?

 

Thu, 10/17/2013 - 07:01 | Link to Comment NoWayJose
NoWayJose's picture

China is holding onto Treasuries and Dollars as leverage against the US. Anytime the US interferes with China, the Chinese can pull the 'big sell' threat. It has worked on things like stopping the US from officially calling China a currency manipulator. If we see a Chinese official come out and say they will sell a 'good amount' then China will actually be saying that it no longer needs that control over the US.

Thu, 10/17/2013 - 07:49 | Link to Comment Nothing but the...
Nothing but the truth.'s picture

China has positioned itself to perfection - it could slamdunk the US $ at will.

Thu, 10/17/2013 - 06:53 | Link to Comment algol_dog
algol_dog's picture

The Audacity ...

Thu, 10/17/2013 - 07:18 | Link to Comment zjxn06
zjxn06's picture

Damn.  What do they know that we don't?

Thu, 10/17/2013 - 06:56 | Link to Comment fonzannoon
fonzannoon's picture

They have that muzzle on Egan pretty tight.

Thu, 10/17/2013 - 07:41 | Link to Comment DanDaley
DanDaley's picture

Two plus two only equal four if the Fed says so, apparently...aka, shooting the messenger, aka, it-can't-be-true because they said so, not us, aka the genetic fallacy.  

 

 

Thu, 10/17/2013 - 06:57 | Link to Comment involuntarilybirthed
involuntarilybirthed's picture

Debt is our greatest enemy, a growing enemy with no apparent will to fight it.  Those that oppose it are persecuted at the highest levels and ridiculed by those that will be most affected by it.  

Thu, 10/17/2013 - 07:03 | Link to Comment razorthin
razorthin's picture

A- is about 3 grades too high still.

Thu, 10/17/2013 - 07:41 | Link to Comment Running On Bing...
Running On Bingo Fuel's picture

I'm with you. C class rating at fucking best. C and declining. My argument is that unchecked inflation is a form of default, default by erosion. FU Ben Shalom.

Thu, 10/17/2013 - 07:46 | Link to Comment Nothing but the...
Nothing but the truth.'s picture

Agreed razor - Dagong being overly optimistic and sympathetic to a lost cause.

Thu, 10/17/2013 - 08:05 | Link to Comment CaptainObvious
CaptainObvious's picture

+1 This is the equivalent of a college professor grading on a curve.  He knows his students are as dumb as rocks and spend more time getting high than cracking the books, yet he is protecting his own job (until early retirement with full state pension, of course) by grading on a curve, making those C+ grades into A- grades.  This is just the elites protecting their income streams until it's time to slip into their concrete bunkers and hide from those they screwed into poverty.

Thu, 10/17/2013 - 07:03 | Link to Comment greatbeard
greatbeard's picture

>> downgraded the US from A to A-,

Well there's the understatement of the year.  The only use for that giantic pool of debt is a place to stash massive amounts of moola with the intent of getting it out, and into something else, before the whole house of cards comes tumbling down.  There is not a smidgeon of a chancce any of it is going to be paid back.  It's already common knowledge the SS fund can kiss their money goodby.  Yet the shit is rated A-?  I guess, considering the parent country has a whole bunch of this toilet paper, they need to tead lightly.  What a fucking charade.

Thu, 10/17/2013 - 07:48 | Link to Comment Running On Bing...
Running On Bingo Fuel's picture

Are you serious with this theblaze shit??

Why not perezhilton.com? Same shit no?

Thu, 10/17/2013 - 07:56 | Link to Comment BandGap
BandGap's picture

Why would the source of the truth matter?

Open your eyes.

Thu, 10/17/2013 - 09:33 | Link to Comment Bendromeda Strain
Bendromeda Strain's picture

The fact that you would counter with perezhilton says way more about you than the substance of your initial tantrum.

Thu, 10/17/2013 - 08:44 | Link to Comment DeadFred
DeadFred's picture

Good thing, the FEMA camps need experienced stenographers.

Thu, 10/17/2013 - 07:08 | Link to Comment deerhunter
deerhunter's picture

"Earn back the trust of the American people"   BaaBaaBaaBaa,  your president.  John Boehner, "We fought the good fight"  Blah Blah Blah,  the sun will come up this morning,  it will go down.  One Illinois congressman voted no.  I live in Obama butt sniffer land.  F them all.  If you are a W-2 employee go to your HR department and put 10 exemptions on your tax withholding.  Starve the beast.  Don't use charge cards.  If you have direct deposit remove anything but known monthly expenses.  We can do it. If ten percent of the country quit paying withholding we would get their attention.  Meanwhile,  a family of four who just moved into a new home,  dad 41 mom younger and two young kids were using a generator in their garage for electricity until it got turned on.  All four died in their sleep over night.  No guarantees in life.  America has been running on a generator for decades.  We will go to sleep.  I don't know when.  I have known for years our fiat currency is worth only what a shopkeeper will give you for it.  For those unfortunate four in Merrilville Ind who won't see the sun rise today.  RIP

Thu, 10/17/2013 - 07:26 | Link to Comment BandGap
BandGap's picture

That is so sad.

When it all comes crashing down we must find each other and the good in each other.

Thu, 10/17/2013 - 08:14 | Link to Comment CaptainObvious
CaptainObvious's picture

"If you have direct deposit remove anything but known monthly expenses."

I have direct deposit (only way my company pays, it sucks, I know) and I remove everything but $30 every pay period.  The $30 is just to keep the account in open status and avoid fees, and it's about as much as I'm willing to lose when they Cyprus us.  I pay my few bills in cash and in person.  Cash gets credited immediately so they can't play the "waiting for your check to clear" game and ding you with some bullshit fake fee, and I always have access to all my money.  What's more, they find it very difficult to track my spending, at least until they incorporate RFID chips into the fiat, which I don't doubt is coming soon.  Do not go gentle into that good night, Hedgers.  Make 'em work to kill you, and take a few of them with you.

Thu, 10/17/2013 - 07:14 | Link to Comment bigkahuna
bigkahuna's picture

Oh my...

Thu, 10/17/2013 - 07:17 | Link to Comment JustObserving
JustObserving's picture

Here is the Dagong report from Nov 11, 2010 when it downgraded US debt from AA to A+:

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.

...

The total output value of the U.S. financial services industry is composed of two major parts: one is the transferred production value, most of which comes from value distribution of participating in international production. Another part is the inflated value originated from credit innovation, which belongs to bubble value. In addition, due to the high economic financialization, more than half of the profits in the real economy come from the returns of financial activities. If we exclude the factor of virtual economy, the U.S. actual GDP is about 5 trillion U.S. dollars in 2009, per capita GDP about $ 15,000. Meanwhile, the total domestic consumption was 10.0 trillion U.S. dollars and government expenditure was 4.5 trillion U.S. dollars.

http://www.businessinsider.com/china-dagong-us-gdp-2010-11#ixzz2RZwq0kxW

Thu, 10/17/2013 - 07:18 | Link to Comment iLiquid
iLiquid's picture

Debt is Wealth

Freedom is Slavery

Ignorance is Strength

Thu, 10/17/2013 - 07:26 | Link to Comment satinw
satinw's picture

But the government employees are off the golf course and back to work with unemployment checks and back pay in their pockets. That will fix everything

 

 

 

Thu, 10/17/2013 - 07:52 | Link to Comment Running On Bing...
Running On Bingo Fuel's picture

The vacation is over. The hangover begins.

Over.

Thu, 10/17/2013 - 07:28 | Link to Comment justtotaketheedgeoff
justtotaketheedgeoff's picture

Dagong is right. The US is flat ass broke. It's pathetic. We can't pay our bills unless we borrow money. When a family is in that situation, they cut spending in every category and eliminate all spending in some. Then they go through the couch cushions for spare change, sell stuff and pick up extra hours whenever they can. In other words, they act like adults and change their behavior. We need to man up and cut spending everywhere, including Social Security, Medicare, federal retirement, military retirement, disability, all federal agencies, the works. Restrict food stamps to basic staples - milk, cheese, hamburger, flour, oranges, apples, potatoes, onions, cabbage and a bottle of generic multivitamins.
We should also eliminate all foreign aid immediately. If a country wants money from us, let them write a grant proposal that details why it's a good idea.
Seriously people, this stuff has got to stop.

Thu, 10/17/2013 - 08:09 | Link to Comment gavrilo princip
gavrilo princip's picture

You are right, only there is quite a lot of things that first have to be sold and bought. Gold being one example only.

Thu, 10/17/2013 - 08:22 | Link to Comment earnyermoney
earnyermoney's picture

"We can't pay our bills unless we borrow money. When a family is in that situation, they cut spending..."

In the past, I'd agree. Not any more. Sign up for another credit card and free stuff from the government. There's a reason the Red/Blue fascists refer to the Tea Party folks as terrorists. Go read the comments section of any article dealing with the "Shutdown" circus in the Old Gray Whore. Progressives foaming at the mouth because a few people dare stand in their way.

Thu, 10/17/2013 - 07:42 | Link to Comment papaswamp
papaswamp's picture

What no Cease and Desist from the SEC like they did to Egan Jones? wtf?

Thu, 10/17/2013 - 07:44 | Link to Comment sumo
sumo's picture

A Chinese ratings agency speaks the truth. US rating agencies dare not speak the truth for fear of Gov reprisals.

WTF? Remind me again, which of these countries has the freedom-hating totalitarian regime?

What's that, you say? The one with state censorship of the news, and pervasive lawless repression and surveillance of its people?

 

Uh-huh, and ... which one is that?

Thu, 10/17/2013 - 08:25 | Link to Comment CaptainObvious
CaptainObvious's picture

Ummm, uh, I pick "C", all of the above.  China is very open about how totalitarian they are.  'Murica has to swaddle its totalitarianism in a blanket made of the flag, the Constitution, and lots and lots of fiat.  China's serfs were beaten into submission decades ago with brute force.  'Murica's serfs have been beaten into submission over decades with inflation, eroded rights, and increased regulation.  I think I would have preferred the Chinese method...it's much more honest.  We 'Muricans are the frog in the pot of water that was slowly brought to boil.  The Chinese said "fuck that noise" and just beheaded the frog.

Thu, 10/17/2013 - 07:57 | Link to Comment Analyse2
Analyse2's picture

"Fitch is majority French-owned"

NO

Fitch Ratings Inc. is a jointly owned subsidiary of Hearst Corporation and FIMALAC SA.

On April 12, 2012, Hearst increased their stake in the Fitch Group to 50%. HEARST is American.

Previously, HEARST owned a 40% stake in the company, while FIMALAC was the majority owner with 60% stake. Fitch Ratings and Fitch Solutions are part of the Fitch Group.

Fitch Ratings is dual-headquartered in New York, USA, and London, UK 

 

Thu, 10/17/2013 - 07:58 | Link to Comment Running On Bing...
Running On Bingo Fuel's picture

The regime will retaliate.

From this point forward The Dagong Cookie Company will circumnavigate the ministry of propaganda's blockade.

Read your fortune cookie carefully for the encoded messages.

Thu, 10/17/2013 - 08:28 | Link to Comment CaptainObvious
CaptainObvious's picture

I had Chinese food last night, and my fortune wasn't encoded, or even subtle.  It read "You are so fucked, American Capitalist pig!  Ha, ha ha HA!" 

Thu, 10/17/2013 - 08:08 | Link to Comment W74
W74's picture

Must've had to blow the Asian professor of Mathematics, Dr. Wei Long Dong, to get a grade that high.

Thu, 10/17/2013 - 08:14 | Link to Comment the not so migh...
the not so mighty maximiza's picture

but we are paying them back in devalued dollers, stupid chinamen,, hahahahahaha

 

Thu, 10/17/2013 - 08:30 | Link to Comment CaptainObvious
CaptainObvious's picture

And they are using those devalued dollars to buy the gold that da gubmint is selling.  Only India is buying more gold.

Thu, 10/17/2013 - 08:21 | Link to Comment Mister Ponzi
Mister Ponzi's picture

It's very hard to argue against this line of reasoning...

Thu, 10/17/2013 - 08:47 | Link to Comment youngman
youngman's picture

Remember the Chinese are a Primary Dealer

Thu, 10/17/2013 - 08:47 | Link to Comment Tsar Pointless
Tsar Pointless's picture

Bang Dagong! Get it on! Bang Dagong!

Thu, 10/17/2013 - 09:10 | Link to Comment Sufiy
Sufiy's picture

Some real economic data:


Gold Catalyst - John Williams: Very Serious Trouble in this Next Year - Weaker Dollar and Hyperinflation


 John Williams is very respected economist who is providing  the real economic data, which is not massaged by the government desires and wishful thinking. His view at the crucial juncture for US Economy and Health of US dollar us very important to share now.   Gold celebrates today "The Deal" and it looks like that Debt Ceiling Raise Does Mean Increase in the Amount of debt after all. http://sufiy.blogspot.co.uk/2013/10/gold-catalyst-john-williams-very.html#

Thu, 10/17/2013 - 09:13 | Link to Comment foodstampbarry
foodstampbarry's picture

Thank you President Downgrade.

Thu, 10/17/2013 - 09:17 | Link to Comment bullmarket
bullmarket's picture

And in similar news... Dagong reaffirms China's AAA rating. They confirmed that building empty cities will lead to A Field of Dreams

Thu, 10/17/2013 - 09:52 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

And the FED increases its buying of the Government paper until the US government is forced to sell Yellowstone National Park to the Chinese......  Maybe we don't need to re-open the park?

Thu, 10/17/2013 - 12:32 | Link to Comment nathan1234
nathan1234's picture

The Stupid & Poor index is now graded to D

Has failed as a rating agency to carry out correct ratings.

 

 

Thu, 10/17/2013 - 13:34 | Link to Comment Herkimer Jerkimer
Herkimer Jerkimer's picture

'

'

'

Watch how the Western ratings agency now downgrade China.

 

And around and around, so nobody knows who to trust.

 

What a surprise!?

 

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