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http://news.goldseek.com/GoldSeek/1313006700.php
Excerpts from link:
1. Yet the most important voice in the debate about the credit worthiness of America’s debt, is not the twisted opinions of the US-credit rating agencies, but rather, that of China’s credit rating agency - Dagong Global Credit Rating, which downgraded US-Treasury’s debt from A+ to single-A last week. “The US decision to raise the borrowing ceiling will not change the fact that the growth of its debt has outpaced its overall economic growth and fiscal revenue. “It may further erode the country’s debt paying ability in the coming years,” Dagong Global said. It also issued a negative outlook. “The rise of the US-debt ceiling helped temporarily avoid a debt default but has not improved its solvency and the increasing government debt burden will deteriorate the US sovereign debt crisis.”
2. In a commentary published by the China News Agency on the evening of August 7[SUP]th[/SUP], the technocrats in the Politburo dropped the equivalent of a nuclear bombshell that ignited a worldwide meltdown in global stock markets and sent gold soaring above $1,700 /oz. “China, the largest creditor of the world’s sole superpower, has every right to demand the US to address its structural debt problems and insure the safety of China’s dollar assets. If no substantial cuts were made to the US’s gigantic military expenditure and bloated social welfare costs, the latest credit downgrade would prove to be only a prelude to more devastating credit rating cuts, which will further roil the global financial markets all along the way,” it said.
3. [FONT=Arial, Verdana, Helvetica, sans-serif]On August 8[SUP]th[/SUP], Beijing shocked the markets again, in a stinging commentary carried by the official Xinhua news agency. “China has every right to demand the US address its structural debt problems and safeguard China’s dollar assets. Washington needs to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone. To cure its addiction to debts, the US has to re-establish the commonsense principle that one should live within one’s means,” Xinhua said.
4. [/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]Over 60% of China’s foreign currency stash is believed to be in US-dollar assets. Apart from Treasury bonds, China holds hundreds of billions in mortgage-backed securities issued by Freddie Mac and Fannie Mae, and corporate equities and bonds. The dollar assets held by China are now believed to total $2-trillion. It is estimated that in the first four months of 2011, China’s invested three-quarters of its foreign currency surplus in non-US dollar assets. As a result, China is vulnerable to the demise of the US-dollar, but also the European debt crisis that threatens the existence of the Euro as a unified currency.
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Excerpts from link:
1. Yet the most important voice in the debate about the credit worthiness of America’s debt, is not the twisted opinions of the US-credit rating agencies, but rather, that of China’s credit rating agency - Dagong Global Credit Rating, which downgraded US-Treasury’s debt from A+ to single-A last week. “The US decision to raise the borrowing ceiling will not change the fact that the growth of its debt has outpaced its overall economic growth and fiscal revenue. “It may further erode the country’s debt paying ability in the coming years,” Dagong Global said. It also issued a negative outlook. “The rise of the US-debt ceiling helped temporarily avoid a debt default but has not improved its solvency and the increasing government debt burden will deteriorate the US sovereign debt crisis.”
2. In a commentary published by the China News Agency on the evening of August 7[SUP]th[/SUP], the technocrats in the Politburo dropped the equivalent of a nuclear bombshell that ignited a worldwide meltdown in global stock markets and sent gold soaring above $1,700 /oz. “China, the largest creditor of the world’s sole superpower, has every right to demand the US to address its structural debt problems and insure the safety of China’s dollar assets. If no substantial cuts were made to the US’s gigantic military expenditure and bloated social welfare costs, the latest credit downgrade would prove to be only a prelude to more devastating credit rating cuts, which will further roil the global financial markets all along the way,” it said.
3. [FONT=Arial, Verdana, Helvetica, sans-serif]On August 8[SUP]th[/SUP], Beijing shocked the markets again, in a stinging commentary carried by the official Xinhua news agency. “China has every right to demand the US address its structural debt problems and safeguard China’s dollar assets. Washington needs to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone. To cure its addiction to debts, the US has to re-establish the commonsense principle that one should live within one’s means,” Xinhua said.
4. [/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]Over 60% of China’s foreign currency stash is believed to be in US-dollar assets. Apart from Treasury bonds, China holds hundreds of billions in mortgage-backed securities issued by Freddie Mac and Fannie Mae, and corporate equities and bonds. The dollar assets held by China are now believed to total $2-trillion. It is estimated that in the first four months of 2011, China’s invested three-quarters of its foreign currency surplus in non-US dollar assets. As a result, China is vulnerable to the demise of the US-dollar, but also the European debt crisis that threatens the existence of the Euro as a unified currency.
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