China Official: It's Too Late, U.S. Already 'Defaulting'

[SmokeEater2]

http://www.foxnews.com/politics/2011...est=latestnews

"As lawmakers scramble to cut a budget deal and avoid defaulting on U.S. debt, the head of a top Chinese rating agency claims it's too late.

Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., reportedly told state media that the United States has already defaulted by letting the U.S. dollar weaken.

"In our opinion, the United States has already been defaulting," Guan was quoted as saying, according to AFP."-Snippage

[Munster30]

Thank you Mr. pResident.

[DakTo]

I think someone need to advise Jianzhong that it's a matter of "net present value" in terms of the US dollar.
What the Sinos have loaned will not be the same equivalent funds which will be repaid, however with interest should exceed the principal.

Gotta watch that Zhongwen math.

[JM]

DakTo--the Chinese have America by the gonads--their fuzzy math is the new standard.

[juanni]

Yes we have already defaulted, when Bernskanke and the FED monetized the debt by purchasing it with dollars printed out of thin air.


It is similar to Lehman's repo 105 scam of selling their bad debt off to themselves, only to buy it back later from themselves.

Pure magic.....until collapse.



...............juanni

[JohnnyV1966]

I have to ask who has been giving away the store for years? What Corporations and Politicians have been facilitating the piecemeal sale of our Economic Engine to the Developing ( Third) World. You cannot tell me that Execs with solid Educations in Business & Economics did not understand the implications of Offshoring.

Clearly we are now going to be paying a high price in terms of debt, a falling US dollar and others around the globe bidding up the resources which we have enjoyed for years.

[LTC B]

Originally posted by DakTo
What the Sinos have loaned will not be the same equivalent funds which will be repaid, however with interest should exceed the principal.

The rates paid on US Treasuries have been nearly zero for years. The dollar has lost enough buying power that the Chinese have lost money. Lots of it. Of course they are unhappy about this. Wouldn't you be?

The drop in the dollar is a principal reason for the (non-housing) inflation we are seeing. Foreign holders of our debt are terrified that we will "monetize" the debt by diminishing the dollar's strength.

Yep, that's what third world countries do when they are in strong fiscal distress. They devalue their currency.

Obama didn't make this fiscal mess, but he is unquestionably making it worse.

[V guy]

Yep, them chinks ought to invest in Greece or Ireland or some african shithole, or just keep their damn money in some shanghai bank--- and buy some friggin derivitives from goldman Sachs.

Too bad they are loosing money and it is eroding in value, like some year old SUV!!

They sent us shit goods, the price based upon their inflated Yen.
Karma is a bitch.

[Deltaten]

Originally posted by DakTo


Gotta watch that Zhongwen math.

zhonguo ren translates as "chinese people", or, more literally, "people from the kingdom in the middle". this is han dynasty talk. han dynasty is dead long time now.

[Munster30]

China's saying we're going third world or too far left?

[FAL freek]

Originally posted by LTC B
The rates paid on US Treasuries have been nearly zero for years. The dollar has lost enough buying power that the Chinese have lost money. Lots of it. Of course they are unhappy about this. Wouldn't you be?

Fugk them. The Chinese have tied their currency to the American dollar for how many years to keep their own currency undervalued so people will keep buying cheap products from them. Way I see it is they are getting a return on their investment.