A Chinese ratings house has accused the United States of defaulting on its massive debt, state media said 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. ...Foreign ministry spokesman Hong Lei on Thursday urged the United States to adopt "effective measures to improve its fiscal situation".
A Chinese ratings house has accused the United States of defaulting on its massive debt, state media said 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.
...Foreign ministry spokesman Hong Lei on Thursday urged the United States to adopt "effective measures to improve its fiscal situation".
http://ca.news.yahoo.com/china-ratings-house-says-us-defaulting-report-054309883.html
It was going to happen eventually, will the US listen? Would not raising the debt ceiling make any difference anyway. Even if the US went in to surplus hundreds of billions of dollars, it would still take decades. How does china or the US know when the debt out of control and a default is likely, where is the limit?
Dagong is going around p***ing way too many people off. If they weren't fully backed by the Chinese government somebody would have given them the Wikileaks treatment already. This is good: it's really way too funny seeing Our Wise Overlords patting themselves on the back while getting ferociously defensive when the words "sovereign debt crisis" are brought up. Compared to US and British rating agencies (curiously the EU seems to have shelved plans for their own in-house rating agency) Dagong ratings are probably much closer to reality. For example they seem to adopt a much more realistic approach regarding future outlook instead of the rose-tinted glasses worn by the Greek bonds, Fannie Mae and Freddie Mac gang.
Frankly speaking there is no set rule to declare a country on the brim of default. For example Japan, despite its enormous sovereign debt, is probably in much better shape than the US. Also Spain has a modest (by European standards) sovereign debt but the internal situation is degrading so fast they could have problems "servicing" the debt in the near future. Finally we should not forget that Dagong seems to be the only rating agency considering what sovereign debt truly is: living beyond one's means. Countries like the US have made living beyond their means a way of life. Despite all the usual reassurances "governments cannot go bust" a massive reality check will arrive sooner or later.
The U.S. may be forced to default on its expenses if the debt ceiling is not elevated. If that happens, it will also drop its top-notch credit rating. A decreased credit score will impact all levels of the economic system and be experienced in the pocket of typical citizens. I read this here: The U.S. credit rating will fall if debt ceiling is not increased.
U.S. will not default.
It will sell its assets. Cash flow can be prioritized before "stiffing" the bond holders. U.S. credit rating will fall when real interest rates rise and make the frederal debt unservicable (which is the real problem).
It is just fear mongering propaganda.
Fed is between a rock and a hard place; either continue monetizing debt through the QE program (dollar devaluation) or raise interest rates and put the financial markets back into panic mode.
Eating Propaganda
What do you mean i don't care how your day was?!