This page has been archived and commenting is disabled.
Chinese Rating Agency Warns Coming Crisis Is Worse Than 2008, Blames US "Printing Press"
The head of China's Dagong Rating Agency, Guan Jianzhong, had some very blunt words for the world's investors and policymakers overnight. As ITAR-TASS reports, Jianzhong warned , "the world economy may slip into a new global financial crisis in the next few years... that is even worse than in 2008."
"I believe we’ll have to face a new world financial crisis in the next few years. It is difficult to give the exact time but all the signs are present, such as the growing volume of debts and the unsteady development of the economies of the US, the EU, China and some other developing countries," he said, adding the situation is even worse than ahead of 2008."
"The current crisis in Russia is caused by Western countries’ sanctions rather than internal factors. If we look at the US and the EU countries, their crises were caused by internal and not external factors," the president of China’s Dagong rating agency said.
"As distinct from Russia, the scope of crediting in these countries exceeded the potential for the production of goods and created a bubble.
This crisis was transmitted to the entire world through the policy of quantitative easing and the use of the printing press. All the countries had to pay for that," he said.
A setback in the growth model focused on credit-based consumption may become a source of a new crisis, he said.
"Developed countries, including the US and the EU, remain the main consumers. But these countries develop only if there is consumer demand while the main potential for this consumption is based on borrowings. The US, the EU and Japan are increasing consumption through growth in crediting, which poses a risk," he said.
Some emerging market countries have also been increasing consumption through crediting in recent years and the global economy has been based on the model that promotes consumption through funds that will be earned in the future," the head of China’s Dagong rating agency said.
* * *
»
- 42346 reads
- Printer-friendly version
- Send to friend
- advertisements -
Do we really have to wait years?
Nope. Begins in earnest in 2015.
Its a case of the pot calling the kettle black---The Chinese printing presses have been going a hundred miles an hour too, longer than ours, but they have been buying natural resources all over the world and building excess infrastructure including uninhabited cities . Then there are the "party folks" who have been taking the stolen money and have been bidding up real estate prices all over the USA and the world and using the investor visa loopholes to get the greencards and come over here in time for medicare to take care of them after they retire in China. But our fearless leader doesnt want to close these kind of loopholes in the immigration system or the tax credit abuse by non citizens--he just wants to let more in so its a bigger party. Let no one be deceived--Obama hates taxpayers and supports freeloaders.
Ho Lee Fuk!
All the printing presses have been going at 100 miles an hour, including China, that's how currency pegs work, the US gets to export inflation. Currency pegs are a dumb idea.
So are non-stop printing presses.
'
'
'
Let's see those Yankee bastards sue the Chinese when they downgrade them!
•?•
V-V
The America made Chinese work like slaves for producing iPhones etc. and paid in dollars.
Realizing too many dollars went to China,
now USA wants to pulls the plug on Dollar so that the Dollars in hands of China become less
valuable (worthless??)
Get out of Dollar (& EURO) slavery ,
The west (+Aus+Jap) are only printing presses and the rest of world gives them the best of products & services working overtime.
Start your own fin. system BRICKS
ASAP
Hey, thanks for the tip...
"This crisis was transmitted to the entire world through the policy of quantitative easing and the use of the printing press. All the countries had to pay for that,"
2008 and sub-prime:
"This crisis was transmitted to the entire world through complex financial instruments. All the countries had to pay for that,"
So, in a nutshell, they are worried that everyone's credit cards are maxed out or soon will be. Hence the "living on credit" scheme is up and nobody will be able to buy their junk? That's the way I am reading this.
Who needs Chinese ratings agencies when we have Standard (1%) & Poor (99%) - it's all AAA, just an 'opinion'..
The world is ready for new leadership.
The world is ready for no leadership.
China accusing the US of currency manipulation? Pot, kettle black.
Global growth might have been a little more balanced if they'd allowed a free float of CNY. It may be the single biggest cause of the crisis as its masked western inflationary pressures that might have led to higher interest rates pre-2007 and prevented the catastrophic accumulation of debt.
Clearly they are not speaking to the financial industry as they are well aware but play the market or manipulate the market as they find it. Is old news.
Perhaps they are speaking to retail investors?
Or are they trying to out thr CB?
China has no printing press then? China had one of the biggest credit expansions in history in 2009-2010, and the after-effects of that are at least as dangerous as the Fed's printing