Chinese ratings agency Dagong Global Credit Rating Group made a media splash in July when it launched its sovereign debt ratings by stripping seven developed nations of their AAA ratings, putting nations such as France, Britain, and the U.S. below China.
Now the firm has just downgraded the U.S. further, to ‘A+’ from ‘AA’, blaming QE2, and they’re throwing out some real whoppers:
The serious defects in the United States economic development and management model will lead to the long-term recession of its national economy, fundamentally lowering the national solvency. The new round of quantitative easing monetary policy adopted by the Federal Reserve has brought about an obvious trend of depreciation of the U.S. dollar, and the continuation and deepening of credit crisis in the U.S. Such a move entirely encroaches on the interests of the creditors, indicating the decline of the U.S. government’s intention of debt repayment. Analysis shows that the crisis confronting the U.S. cannot be ultimately resolved through currency depreciation. On the contrary, it is likely that an overall crisis might be triggered by the U.S. government’s policy to continuously depreciate the U.S. dollar against the will of creditors…
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