According to the Chinease press, the Chinese rating agency Dagong Global Credit has downgraded the US credit rating due to QE (Quantative Easing) program that was recently put into place.
The Agency cut the long term US sovereign rating one notch to A+ from AA because of negative outlooks. They quoted that this is due to "The serious defects in the U.S. economy will lead to long-term recession and fundamentally lower the national solvency. The credit crisis is far from over in the United States and the U.S. economy will be in a long-term recession."
According to the rating agency the weaker dollar will hurt the United States' ability to attract dollar capital reflow. In essence, the U.S. government's move to devalue the dollar indicates its solvency is on the brink of collapse.
Very bad news indeed for us here in the United States. A currency war is coming with China and things are going to start getting real bad from an economic standpoint. Also, don't just think that the chinese are involved in this little game,Russia I believe is pulling the strings as well. Bank holidays are coming. More to come.
-Blogging4Bullion
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