Dollar to Be ‘Discarded’ by World: China Rating

[trooper]

* Dollar to Be ‘Discarded’ by World: China Rating Agency

August 9, 2011

Dollar to Be ‘Discarded’ by World: China Rating Agency

Published: Sunday, 7 Aug 2011 | 10:28 AM ET By Ee Sing Wong

News Editor

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.

The United States “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.”

Guan Jianzhong

Chairman, Dagong Global Credit Rating

In comments emailed to CNBC, Guan Jianzhong, chairman of Dagong Global Credit Rating, said the currency is “gradually discarded by the world,” and the “process will be irreversible.”

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.”

[BruceV]

F CHINA!!!!

[Brudog]

F CHINA!!!!

Love it! Screw'em

Love it! Screw'em. And the banks. No bail out money left unless the Fed prints some new one's!

[countryroads]

They had better hope so. Because when we recover, we're going to remember what they said about us. We were a capitalist nation when they were sloshing around in the mud and bowing to emperors. We'll be back.

[Brudog]

They had better hope so. Because when we recover, we're going to remember what they said about us. We were a capitalist nation when they were sloshing around in the mud and bowing to emperors. We'll be back.

And we will survive!

[Rayzur]

Personally, I rather like the proactive approach Wisconsin is taking at this moment, in dealing with the " policymakers in Washington [who] failed to act in a timely manner to lift its debt celing"........

It seems to kind of push the boundaries of logic in blaming the game of chicken that the tea party played with democrats on China.

And did anyone notice the line " 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.

Read more:

Read more:

[Texas1]

Hide their ping pong paddles, then see what they have to say....

[estewart]

Personally, I rather like the proactive approach Wisconsin is taking at this moment, in dealing with the " policymakers in Washington [who] failed to act in a timely manner to lift its debt celing"........

It seems to kind of push the boundaries of logic in blaming the game of chicken that the tea party played with democrats on China.

And did anyone notice the line " 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.

Read more: http://dinarvets.com.../#ixzz1UVYhapQy

Read more: http://dinarvets.com.../#ixzz1UVY5AWiD

I had already seen about China beginning to establish a new World's Reserve Currency. China is the biggest holder of the US' international debt, and China is alarmed at what this country is doing with its money. It's just not understandable how the World's Reserve Currency could be ever treated the way the FED has been doing. I could easily believe the FED is aiming to destroy the US.

[lvbodyworker]

I had already seen about China beginning to establish a new World's Reserve Currency. China is the biggest holder of the US' international debt, and China is alarmed at what this country is doing with its money. It's just not understandable how the World's Reserve Currency could be ever treated the way the FED has been doing. I could easily believe the FED is aiming to destroy the US.

VERY LIKELY!!

WE AS AMERICAN'S CAN SEND A STRONG MESSAGE BY READING LABELS, EVEN ON FOOD. IF IT SAYS MADE IN CHINA, DON'T BUY IT FOR 1 PREFERABLY 3 MONTHS. STAY OUT OF WALL MART FOR THE SAME

PERIOD OF TIME AND JUST SEE WHAT HAPPENS TO THE CHINESE CURRENCY AND THEIR ECONOMY. WITHOUT US, AMERICAN'S, USING OUR GREENBACKS TO PURCHASE THEIR CHINESE GOODS, THEY WOULD BE IN FOR A WORLD OF HURT, AND THEIR ECONOMY WILL TAKE A HUGE HIT, SENDING THEM AN EVEN BIGGER MESSAGE. JMHO!!

SPREAD THE WORD!!

[wavggg]

I can't believe the blind-faith just mal-informed comments that come out here sometimes...

It's like sayin the Cubs are gonna win, just cause I live in Chicago!

Please get a grip and introduce yourself politely to your new masters...

-gg

[JCS1977]

They had better hope so. Because when we recover, we're going to remember what they said about us. We were a capitalist nation when they were sloshing around in the mud and bowing to emperors. We'll be back.

Are you sure about that? We can't recover when we have a cancer in our leadership. This downgrade has been the plan all along - one orchestrated by soros, and put into effect by his puppets in ours and others governments. The only way to get back on the right path is for us to cut the disease out of our government. Now. We cannot wait until the next term, as things are happening too fast already.

[estewart]

VERY LIKELY!!

WE AS AMERICAN'S CAN SEND A STRONG MESSAGE BY READING LABELS, EVEN ON FOOD. IF IT SAYS MADE IN CHINA, DON'T BUY IT FOR 1 PREFERABLY 3 MONTHS. STAY OUT OF WALL MART FOR THE SAME

PERIOD OF TIME AND JUST SEE WHAT HAPPENS TO THE CHINESE CURRENCY AND THEIR ECONOMY. WITHOUT US, AMERICAN'S, USING OUR GREENBACKS TO PURCHASE THEIR CHINESE GOODS, THEY WOULD BE IN FOR A WORLD OF HURT, AND THEIR ECONOMY WILL TAKE A HUGE HIT, SENDING THEM AN EVEN BIGGER MESSAGE. JMHO!!

SPREAD THE WORD!!

It's not China that's screwed up.

China has done no wrong.

There's no reason to get upset about China.

[wavggg]

Under the terms structured by the US government to postpone our financial collapse, (until the next round of elected carpetbaggers) the US arranged for China to loan us money which we in turn use to "buy" their products.... so China is paying for their own products! We are just the intermediaries... (BTW - China is just the latest teet upon which the USG has attached its fangs -eh-mouth - there are many prior creditors in line before them!)

So everything you buy is owned by China... until the Bill Gets Paid.... which is NEVER because there is no Lawful Asset Based Money with which to actually PAY for anything... there are only Federal Reserve Promissory Debt Notes to temporarily "offset" the debt.

We've been screwed since 1933 and hundreds of smart people have been saying so - but nobody wants to listen and insists that they are all "Chicken Littles" - Well folks - the abilty to repair the damaged/dying body has come to an end.

Time for a clean sweep. Would it not be better to be part of the solution than a further victim of this rediculous 17th century ruse???

Up to you!

-gg

Edited August 9, 2011 by wavggg

[estewart]

Under the terms structured by the US government to postpone our financial collapse, (until the next round of elected carpetbaggers) the US arranged for China to loan us money which we in turn use to "buy" their products.... so China is paying for their own products! We are just the intermediaries... (BTW - China is just the latest teet upon which the USG has attached its fangs -eh-mouth - there are many prior creditors in line before them!)

So everything you buy is owned by China... until the Bill Gets Paid.... which is NEVER because there is no Lawful Asset Based Money with which to actually PAY for anything... there are only Federal Reserve Promissory Debt Notes to temporarily "offset" the debt.

We've been screwed since 1933 and hundreds of smart people have been saying so - but nobody wants to listen and insists that they are all "Chicken Littles" - Well folks - the abilty to repair the damaged/dying body has come to an end.

Time for a clean sweep. Would it not be better to be part of the solution than a further victim of this rediculous 17th century ruse???

Up to you!

-gg

Exactly the case.

[MPG350]

It's not China that's screwed up.

China has done no wrong.

There's no reason to get upset about China.

They have devalued there currency to make it cheaper for people in other countries to buy their goods....might want to look into that.

[SexyDinar]

I am sorry China has nothing to do with the US emploding in fact if it wasn't for China then the US would have been bankrupt years ago.

The US citizens borrowed and begged for money to buy housing they couldn't afford to pay for and the rest of the world are paying for this miss management of banks and authorities in the US who should have been watching what was happening (US is based on GREED).

Obama was put in place by the world elite (the riches bankers/oil familys in the world) to get rid of the dollar as reserve currency so they can build from the ground-up and have complete control over the US citizens.

LOOK CLOSER TO HOME FOR THE ANSWERS AND YOUR ANGER!!!

[wavggg]

They have devalued there currency to make it cheaper for people in other countries to buy their goods....might want to look into that.

Don't mean to sound BASH-ful BUT - If you really think that China devalued their currency to make it cheaper for the rest of the world to buy their products... go back to Econ101, please...

China devalued their currency in exchange for sweetheart deals on buying up the other countries' government-backed bonds AND so as to entice these same other countries into allowing China to become their secured party creditor - which secures for China a primary position at the bankruptcy table of each of these countries... the products they sell are just a vehicle for contractual debt to support the former.

They have studied well and are poised to overturn the centruries old European Royalty based/Rothschild backed banking system by virtue of international contracts. The only problem I have with China is they refuse to acknowledge their responsibility to pay-up on the 100 year old Chinese bonds I and others hold... If they want honor in contracts - it has to go both ways!

P.S. THERE IS NO DEBT CEILING--- ITS THE FLOOR DAMMIT!!!)

Edited August 9, 2011 by wavggg

[wishwell11]

I just don't get it. What is behind the US footing the bill, our servicemen and women sacrificing their lives, while China is allowed to extract billions of dollars in copper..etc out of Afghanistan under the security we provide. Exactly what is their contribution?

Wishwell11

[SexyDinar]

I just don't get it. What is behind the US footing the bill, our servicemen and women sacrificing their lives, while China is allowed to extract billions of dollars in copper..etc out of Afghanistan under the security we provide. Exactly what is their contribution?

Wishwell11

Who is paying for the war in Afghanistan? Lets think about it...........................USA is broke and China keep buying-up USA government bonds!!!!

If I have to spell-it out to you C H I N A !!!!!!!!!!

[wavggg]

I just don't get it. What is behind the US footing the bill, our servicemen and women sacrificing their lives, while China is allowed to extract billions of dollars in copper..etc out of Afghanistan under the security we provide. Exactly what is their contribution?

Wishwell11

Wishwell - The US is NOT footing the bill - China and the IMF are!

The US (and thus you, your parents and grandparents) has not had a penny to spend for over 80 years... it has all been make-believe.

Sorry -

-gg

BTW - just for grins and giggles - I discarded all of my US Federal Resereve Notes except for the minimum I need for essential interactions with idiots awhile ago!

-gg

Edited August 9, 2011 by wavggg

[The Jonald]

sooner or later its going to be time to whip some china ass, in a big way!!

[wavggg]

We Americans calling anyone else in the world "arrogant" is like "the pot calling the kettle black".

Screw the whole notion of manifest destiny, God's chosen nation, and all that blubber...

We were lucky - and for a "galactic picosecond" we had the sun on our shoulders and the wind at our backs...BUT we got drunk on our luck and let prosperity go to our heads, got lazy and let the Europeans regain control over us without even noticing...

Now we are just a trophy over which China and Europe are fighting...

Either way - we lose...

(but there is still that "other" option requiring personal sweat and gulp - blood)

- but shucks Martha, that means I'll miss the Bears/Packers game)

-gg

[DinarBam]

VERY LIKELY!!

WE AS AMERICAN'S CAN SEND A STRONG MESSAGE BY READING LABELS, EVEN ON FOOD. IF IT SAYS MADE IN CHINA, DON'T BUY IT FOR 1 PREFERABLY 3 MONTHS. STAY OUT OF WALL MART FOR THE SAME

PERIOD OF TIME AND JUST SEE WHAT HAPPENS TO THE CHINESE CURRENCY AND THEIR ECONOMY. WITHOUT US, AMERICAN'S, USING OUR GREENBACKS TO PURCHASE THEIR CHINESE GOODS, THEY WOULD BE IN FOR A WORLD OF HURT, AND THEIR ECONOMY WILL TAKE A HUGE HIT, SENDING THEM AN EVEN BIGGER MESSAGE. JMHO!!

SPREAD THE WORD!!

I love the sentiment, but most people will quickly come to realize that they can't find any domestically produced alternatives because we no longer produce or manufacture many goods in this country. Why that is would be a widely argued debate so I won't start down that path but Just go into any Walmart, Home Depot, Lowes, clothing store, electronics store, auto parts store, etc. and try to find something produced in the USA. Then ask again where the problem lies.....

[sheik]

Richard Nixon is rolling in his grave right now.

[TruthNTime]

I can't believe the blind-faith just mal-informed comments that come out here sometimes...

It's like sayin the Cubs are gonna win, just cause I live in Chicago!

Please get a grip and introduce yourself politely to your new masters...

-gg

Thank you, I read these posts and it's as if these guys are best friends with Ben Bernanke or Tim Geithner! I dont condone the spending and debt creation in this country, and I know what it will cause.... my patriotism is based on the spirit of the founders, the protection of the constitution, and the preservation of liberty.

Those of you who think we will climb back out of this hole 'SOLELY BECAUSE WE ARE AMERICANS' had better grow up and get a grip. Freedom is not gauranteed but preserved, debt is not forgiven but defaulted on. We have carried the torch of 'World Reserve Currencey' since 1971 and we took that role from Great Britain as Richard Nixon shocked the world and pulled the U.S. off the gold standard. Yes friends, it was a U.S. president that took our gold and out right to redeem our certificates for gold and silver. Today you carry fiat notes redeemable in faith that are printed by a private bank that refuses to answer to the Congress of the United States of America. The longer you stand in support of your 'team' without realizing that you are not on that 'team', the less likely we the people will ever regain our proper place in this nation along with the Congress. Ignorance and appathy are our enemy, and division the goal of our rulers. Just ask if you can get an appointment with the Governor of your State, then ponder wether or not the President of Bank of America could, or Steve Jobs, or the head of a union. You are not part of that 'team', time to join the real team of individual citizens who are calling for accountability, for constitutional government, this team calls themselves Americans!

Richard Nixon is rolling in his grave right now.

He is more likely rolling in hell.