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Posts Tagged ‘united states of america’

Will 2013 Be Known As The Year America Dies?

December 17th, 2012

Paul Joseph Watson: Will 2013 be remembered by future historians as the year that the United States of America to all intents and purposes died as a Republic and was finally seized by authoritarian globalists who have already openly usurped governments all across Europe? Read more…

Economy, Government

Doug Casey: The U.S. Is Now the United (Police) State of America

November 30th, 2012

Louis: Doug, after conversations like the one we had last week, we often get letters from angry readers who accuse you of hating America, disloyalty, and perhaps even treason. These people don’t know or understand what I do about you – that you love the idea that was America. Read more…

Government, Markets

Mass Immigration, Economic Decline, and Moral Degradation Will Trigger A Civil War and The Collapse of The Dollar

November 15th, 2012

Mac Slavo: Amid hundreds of thousands of signatures calling for secession of individual states from the United States of America, one can’t help but consider the past warnings of former KGB analyst and Russia’s head of the Foreign Ministry for Diplomats, Igor Panarin, who in 1998 theorized Read more…

Currency, Economy, Government, Markets

Dagong: US Solvency on the Brink of Collapse

November 11th, 2010

Founded in 1994, Beijing-based Dagong Global Credit Rating Co. is making headlines once again… this time for downgrading US debt from its already world’s lowest, if not most credible, assessment of double-A, to a lower by one level A+ with negative outlook.

The lowered rating is mainly due to round two of Fed quantitative easing. Among other problems, Dagong highlights “serious defects in the US economy,” including lowered “national solvency,” and “long-term recession.” In this process, the China-based credit rating agency is of course also describing, in a backhanded way, how its own home nation’s biggest foreign reserve holding, US bonds, is deeply flawed.

From The Telegraph:

“The Dagong Global Credit Rating Company analysis is highly critical of American attempts to borrow their way out of debt. It criticises competitive currency devaluation and predicts a “long-term recession”. Dagong Global Credit says: ‘In order to rescue the national crisis, the US government resorted to the extreme economic policy of depreciating the U.S. dollar at all costs and this fully exposes the deep-rooted problem in the development and the management model of national economy.

“’It would be difficult for the U.S. to find the correct path to revive the US economy should the US government fail to understand the source of the credit crunch and the development law of a modern credit economy, and stick to the mindset of traditional economic management model, which indicates that the US economic and social development will enter a long-term recession phase.’

“The analysis concludes: ‘The potential overall crisis in the world resulting from the US dollar depreciation will increase the uncertainty of the U.S. economic recovery. Under the circumstances that none of the economic factors influencing the U.S. economy has turned better explicitly it is possible that the US will continue to expand the use of its loose monetary policy, damaging the interests the creditors. Therefore, given the current situation, the United States may face much unpredictable risks in solvency in the coming one to two years. Accordingly, Dagong assigns negative outlook on both local and foreign currency sovereign credit ratings of the United States.’”

Dagong’s first report was already insulting for being pretty much true… but, what is this? It was one thing to make the point and bring international attention to the US’ papered over debt debacle  However, it’s quite another to bring up a different, lowered version of the US credit rating every single time the feds make a catastrophic and world financial system-jeopardizing blunder (thank you, QE2). Continually downgrading US debt doesn’t seem fair at all, something like punching below the belt. This new strategy is almost certain to get embarrassing quickly.

To drive home this point, just take a look at what is perhaps the report’s most biting quote — which came to our attention by way of The Reformed Broker:

“Though it is likely for the current loose monetary policy to postpone the occurrence of difficulties, yet in the long run, it will be proven to be a practice resembling drinking poison to quench thirst.”

Again, thank you Fed. Thank you for your QE2 poison. And, thank you Dagong, for pointing it out. Way to pick on the fat kid. You can read Dagong’s full report in all its colorful detail in a PDF here entitled, “Surveillance Report for Sovereign Credit Rating: The United States of America.”

Best,

Rocky Vega,
The Daily Reckoning

Dagong: US Solvency on the Brink of Collapse originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

Read more here:
Dagong: US Solvency on the Brink of Collapse




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

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