Dollar to Be 'Discarded' by World: China Rating Agency

[Souldat]

The man who leads one of China’s top rating agencies says the greenback’s status as the world’s reserve currency is set to wane as the world’s most powerful policy makers convene to examine the implication of S&P’s decision to strip the United States of its triple “A” rating. Dagong made headlines last week when it became the first rating agency to cut its U.S. credit rating from “A+” to “A” after policymakers in Washington failed to act in a timely manner to lift its debt celing.

However, the announcement failed to register in the markets as investors have yet to decide whether to take the Beijing-based company seriously.

“It has been around for quite a while, but I do not know of anyone assigning risk assessment to thir portfolio according to Dagong,” said Steen Jakobsen, chief economist at Saxo Bank. “However, clearly the rating industry could do with some competition and deviance from firm beliefs.”

But Guan’s observation—made just before S&P slashed its ratings on the world’s biggest economy—now seems strangely prescient.

“I think the most pressing issue facing the U.S. at the moment is to reflect on the crisis which happened in relation with the debt ceiling," Guan said. "They should get a clear understanding that the continuous decline of the debt service capability will inevitably result in the outbreak of a sovereign debt crisis.”

His sentiment is also reflected in a strongly worded editorial published by China’s official Xinhua news agency on Saturday that is widely seen as a thinly-veiled criticism of U.S. fiscal and economic policies from Beijing.

The editorial called for “international supervision over the issue of U.S. dollars” and the introduction of “a new, stable and secured global reserve currency.”

It also noted that as its largest creditor, Beijing has every right “to demand the United States to address its structural debt problems and ensure the safety of China's dollar assets.”

Is it just me or is china the plague we cant get away form. I don't know about you guys but I stopped buying anything made in China. However you would not not believe how hard it is. I would like to get the community's input on this one.

[sasquatch]

Big government, big business, and the whole "Global community/marketplace" mentality got us in the situation we're in. We have a globalist president who seems to care more about other countries than our own, we give money and aid to countries that secretly (and openly) hate us. The UN condemns almost all our actions, and tries to impose it's will over US citizens. It seems the rest of the world is bent on seeing our country's downfall. Well, where would the world be if not for America? Has the rest of the world forgotten all that we've done for them? Who pulled England's,France's, and even China's fat out of the fryer in WWII? Who's among the first country to step in when corrupt leaders slaughter and oppress their own citizens? I say it's time to pull back from the rest of the world, let them see how quickly things would fall apart without the US. It's about time we started worrying about ourselves. In earlier days America was a great "melting pot", where hard working immigrants could enter legally, find freedom and a hand up. Now it has been turned into something akin to a slop bucket with illegals flooding over the border looking for a hand out causing over-population. Our government can give 800 billion dollars to failing financial institutions, yet there are failing farms, starving people, and wounded soldiers who have to go through Hell to receive a cent. Especially our brave troops overseas who selflessly fight and die for others' freedom using outdated equipment because military spending has been cut by the big wigs. Companies that move thousands of jobs overseas should be penalized, not rewarded with tax breaks. On the other hand companies that move/stay here and create American jobs should be rewarded. While the welfare system in this country can help those who truly need it, there are millions of people who have found out how to abuse it and take hard working American's tax dollars because they're just too lazy to work. This country needs to downsize big government, more closely regulate or close our borders, reform it's wasteful policies and let the rest of the world take care of it's self for awhile. And that's the way I see it.

[Souldat]

Couldn't of said it any better my self. One thing's for sure we are in for a rocky road ahead. All I can say is stock up on some food and water. It's Better to Have a it and Not Need It, Than to Need it and Not Have it.

[sasquatch]

Yep. This whole financial and deficit crisis may affect me, then again it may not. Either way I'm not rich, have never been rich, and I know what it's like to do without. Wouldn't really be a huge change for me, I am not a sheep, I will not follow the other lemmings over the cliff, I will adapt and survive.