| User Info
| China Downgrades United States Credit in forum [Market-Ticker]
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Smacktle
Posts: 1039
Incept: 2009-01-20
Texas
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China is gonna kick our ass!
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The faults of the burglar are the qualities of the financier.
- George Bernard Shaw
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Randy123
Posts: 4551
Incept: 2008-09-24
New Jersey
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We should default on their debt and get it over with.
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China is the Enemy. Wake Up.
New Normal. Same As The Old Awful.
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Mondocondo
Posts: 3628
Incept: 2007-12-03
Miami
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It's a sad day indeed when a communist country shows more knowledge of our capitalist economy than Bernanke.
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Rbarreira
Posts: 2727
Incept: 2009-05-27
Portugal -> Sweden
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China is not a communist country.
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In Soviet Russia, the government regulates the banks.
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Hogman
Posts: 6557
Incept: 2008-02-18
Derby City, USA
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what mondo said
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| Learn How The Corrupt Political System Killed Our Economy
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Vapor
Posts: 1266
Incept: 2008-04-10
virginia
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Hmmm. Wow.
When did the first downgrade happen?
Do USG bonds have exceptionally low interest rates for an A+ rated bond? I would expect that the Fed actions are resulting in US bonds having really low interest rates compared to other A+ rated bonds.
What interest rates do other A+ rated bonds have? Anyone else know or know where to find this information?
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Asdqwe
Posts: 132
Incept: 2010-06-18
Banned
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Bah. They are just trying to get a better price at the next treasury auction.
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Trades50
Posts: 3442
Incept: 2007-10-30
Land of Tax and Spend
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Kinda think Bernanke knew this was going to be announced.
The Chinese warned the US ahead of time. That's why the Fed is the buyer of last resort lately. Anything to protect member banksters/fraudsters.
Getting close to an end-game scenario? Next year is when the SHTF?
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"Fascism should more properly be called corporatism because it is the merger of state and corporate power." Benito Mussolini
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Grace
Posts: 362
Incept: 2008-10-15
upstate new york
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Dagong believes that the occurrence and development process of the credit crisis in the U.S. resulted from the long-standing accumulation of the contradictions in its economic system; the U.S. debt burden can be relieved only to a certain extent through large-scale printing and issuance of the U.S. dollar; however the consequent decline of the U.S. dollar status and national credit will block the debt revenue channel which is vital to the existence of the United States to a greater extent. The potential overall crisis in the world resulting from the U.S. dollar depreciation will increase the uncertainty of the U.S. economic recovery. Under the circumstances that none of the economic factors influencing the U.S. economy has turned better explicitly it is possible that the U.S. will continue to expand the use of its loose monetary policy, damaging the interests the creditors. Therefore, given the current situation, the United States may face much unpredictable risks in solvency in the coming one to two years. Accordingly, Dagong assigns negative outlook on both local and foreign currency sovereign credit ratings of the United States. http://www.dagongcredit.com/dagongweb/uf.... |
Psquared
Posts: 1856
Incept: 2008-10-11
SE USA
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Every day that passes, I am more convinced that the purpose of QE II is NOT to add liquidity or bring down long term rates; it is none other than an attempt to stave off a bond market dislocation and then a collapse of the dollar.
It is clear to me that the Chinese are saying (quietly at first and now shouting from the rooftops) that they will not buy anymore US debt at these interest rates. As Sarah Palin put it yesterday, that makes the Fed the ONLY buyer of treasuries.
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"Our Constitution is designed only for a moral and religious people. It is wholly inadequate for any other." ~ John Adams
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Vmooper
Posts: 1826
Incept: 2007-11-30
Bailout ville
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Mondo, we are not a capitalist economy. We are an Oligopoly with a capitalism wrapper to get you to take a bite. You know, chocolate shell on a turd economy. China is a chocolate shell on one of those nasty orange fillings. Fake but not as rancid.
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"If you don't know where you are going, speeding up is not the answer." -Jeff Macke
"If you bail out everyone, nobody gets bailed out." -Jeff Macke
"Those who make peaceful revolution impossible, make violent revolution inevitable." -JFK
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| Learn How The Corrupt Political System Killed Our Economy
|
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Rutben
Posts: 1321
Incept: 2007-07-27
Phoenix, AZ
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Rbarreira
Posts: 2727
Incept: 2009-05-27
Portugal -> Sweden
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Go read the full PDF over at Zero Hedge, they talk about "utter chaos" and "malicious act of currency devaluation" in the last page. Quote:The status of the U.S. dollar as the dominant international reserve currency
determines that its depreciation gives an inevitable impact to the interests of all creditors.
In addition to the shrinking of creditors’ assets, the utter chaos in the international
currency system triggered by the depreciation of the U.S. dollar will definitely damage the
interests of all the creditors in the world at various levels. Together with the possibility of
inflation in the future, the wealth of creditors will be plundered once again by the malicious
act of currency devaluation conducted by the U.S. government after it suffered the losses
during the financial crisis since 2007.
The value fluctuation of the world’s major currencies caused by the continuous
devaluation of the U.S. dollar will push the adjustment in world interest pattern through the
value comparison of the monetary system. The essence is to transfer the interests of the
creditors to the debtor free of charge, and that will fundamentally destroy the international
credit system and global economic system comprised of the creditor system and debtor
system, resulting in an overall crisis around the world.
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In Soviet Russia, the government regulates the banks.
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Docj
Posts: 787
Incept: 2009-09-10
Suburban Boston
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Winter is coming.
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We've gone from a country whose population instinctively knew there was no free lunch to one who's population has convinced itself that the consumption of free lunches is a revenue generating activity.
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Daveincsa
Posts: 194
Incept: 2009-01-25
In the South
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I hope and pray this has nothing to do with the 'mystery missile launch off the West Coast' that's in the news.
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Bertdilbert
Posts: 1458
Incept: 2008-12-22
CA
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When the Saudi's downgrade us, we are in serious trouble.
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I think I found Bondzilla and he is wearing a toga!
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Mj71
Posts: 111
Incept: 2009-03-14
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Good for a whopping 4pts off of the S&P.  |
Vmooper
Posts: 1826
Incept: 2007-11-30
Bailout ville
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I don't think Ben cares about the dollar because he knows that the Euro will come apart within 18 months and China is pegging to USD. I don't think he believes the USD can collapse on a relative value because he has that as cover.
The key is the bond market. IMO he knows short rates will stay negative and he will let long rates rise some to allow bank earnings to cover the fraud like Japan did. But we all need to realize that the bond market per say no longer exists. Ben is the bond market, China has already stopped buying our debt out the curve, and unless the USD collapses, the long rate can't spike as it should because Ben will buy it all. I believe he will try to print $4-6 trillion if nobody pulls the plug on him.
Who is gonna pull the plug: USD vs. Euro?, congress?, Obama?, the American people?, new Fed voting members?, ratings agencies?.
IMO, if the courts don't block enough foreclosures to kill the banks via cash flow, we are done. I don't think any of the groups listed above will pull the plug to the printer before it is too late. Ben seems to have a back up generator and it is that he has taken over the bond market. He has taken the police off the streets and it sucks.
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"If you don't know where you are going, speeding up is not the answer." -Jeff Macke
"If you bail out everyone, nobody gets bailed out." -Jeff Macke
"Those who make peaceful revolution impossible, make violent revolution inevitable." -JFK
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Azengrcat
Posts: 127
Incept: 2010-05-31
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I'm surprised the Fed has not heard of or signed up for Freecreditreport.cn
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Karlmarxghost
Posts: 4081
Incept: 2009-01-26
I'm Your Huckleberry
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War is coming soon folks, It may start with a trade war and escalate into something bigger but this might just be the first shot. Maybe now that the government sees that China isnt looking out for our interests it is time to tilt the trade balance more to the center...
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My views are my view and mine alone. Karl or ticker forum does not endorse or necessarily agree with my views. DO not trade on my views or take them personally.
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Vmooper
Posts: 1826
Incept: 2007-11-30
Bailout ville
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I pray for tariffs and trade wars every night. It is time to end the fraud that globalization has become. It is nothing short of a needle to suck the wealth out of every non-elite around the world. Problem is the needle is no longer at boiling frog speed, it is a full out geyser and people are starting to talk about it. It's time to take our veins back from this bloody mess.
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"If you don't know where you are going, speeding up is not the answer." -Jeff Macke
"If you bail out everyone, nobody gets bailed out." -Jeff Macke
"Those who make peaceful revolution impossible, make violent revolution inevitable." -JFK
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Corn1945
Posts: 4167
Incept: 2009-04-30
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Quote: I'm surprised the Fed has not heard of or signed up for Freecreditreport.cn
*Phone Rings* United States: Hi, this is the United States calling. Is this Freecreditreport.cn? China: Yes it is! United States: Great! I'd like my free credit report! China: Er, that offer expired. You will have to pay. United States: Ok, how much is it? *Muffled voices.* *How much of their crap, uh, I mean treasuries do we have?* *About a trillion bucks.* China: That will be $1 trillion please. United States: Do you take IOUs? |
Themortgagedude
Posts: 7863
Incept: 2007-12-17
saint louis
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All that has to happen is to get some big boys in a room and make some tough decisions. Part B gone. Medicare - no more hips and knees. Social Security - age 72. Afghanistan and Iraq bring em home. Tax cuts gone. Social security taxes on all income not just wages under $100k.
Balance the budget and interest rates won't have to be brought down artificially. And as for earning an honest interest rate - you won't need to when deflation brings the prices of everything down.
The only bit of overspending should be done to bring us to energy independence. That would be an investment in our future.
It would also be nice to put all the banksters behind bars.
If we don't make the tough choices now they will be forced upon us later. It would be nice to do it now while we can still roll existing debt. What the hell happens when we can't afford new debt and can't roll existing?
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themortgagedude - The man who is constantly 1.6 million miles ahead of Karl Denninger.
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Trades50
Posts: 3442
Incept: 2007-10-30
Land of Tax and Spend
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China's interest is in China.
There are a number of ways China can be screwed. They have over a billion mouths to feed. Hungry people have nothing to loose.
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"Fascism should more properly be called corporatism because it is the merger of state and corporate power." Benito Mussolini
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