The PJ Tatler

It's not just the S & P - China's Dagong credit agency downgraded US in November

From the Economist Magazine:

JOSH Noble in the FT has a great piece on the views of Dagong, China’s credit rating agency. Since China is the world’s key creditor, it makes sense to focus on its views. Never mind “negative watch”; Dagong downgraded the US back in November from AA to A+, on a par with Chile. Only Switzerland, Denmark and Australia are ranked AAA; China and Germany are AA+ or three notches higher than the US.

Nor does the agency pull its punches. In its outlook for the year, published in January, it said that

the United States, as the biggest country involved in sovereign debt crisis around the world, will continue its quantitative easing policy when the country is in danger, and the world credit war will be escalated due to the overflow of US dollars. In particular, the trend of continuous depreciation of US dollar will result in haircut of international creditors’ debts dominated in US dollar. The issuance of US dollar encourages numerous speculative capitals into the global commodity market, leading to an increasing pressure on global inflation. Different countries, in order to avoid unpredictable losses on their own interests, will have to seek for adjustment of international credit relations, and the global credit war, no doubt, will become the turning point of reforming international credit relations in 2011.

Hey, don’t feel so bad. Some have it worse. There’s always this song…

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