China ratings house says US defaulting: report

[thewiseguy]

A Chinese ratings house has accused the United States of defaulting on its massive debt, state media said Friday, a day after Beijing urged Washington to put its fiscal house in order.

"In our opinion, the United States has already been defaulting," Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., the only Chinese agency that gives sovereign ratings, was quoted by the Global Times saying. Washington had already defaulted on its loans by allowing the dollar to weaken against other currencies -- eroding the wealth of creditors including China, Guan said.Guan did not immediately respond to AFP requests for comment.

The US government will run out of room to spend more on August 2 unless Congress bumps up the borrowing limit beyond $14.29 trillion -- but Republicans are refusing to support such a move until a deficit cutting deal is reached.

Ratings agency Fitch on Wednesday joined Moody's and Standard & Poor's to warn the United States could lose its first-class credit rating if it fails to raise its debt ceiling to avoid defaulting on loans. A downgrade could sharply raise US borrowing costs, worsening the country's already dire fiscal position, and send shock waves through the financial world, which has long considered US debt a benchmark among safe-haven investments.

http://ca.news.yahoo.com/china-ratings-house-says-us-defaulting-report-054309883.html

[ProdigalJunkMail]

1. Defaulting is not an 'opinion' n/t

[Avant Guardian]

2. Republicans toy with debt limit

...and most of their supporters lose their houses because interest rates shoot up to 20%

Republicans are dangerous

[NutmegYankee]

4. Only those with adjustable rate mortgages.

Those with fixed rates will be fine.

[OmahaBlueDog]

3. Weakening the currency is not defaulting

It's a clear sign of what's obvious to everyone - China's currency is artificially low.

[Drale]

5. There is probably a political angle to this in china

This guy is probably trying to get more power, compared to China our government works perfectly.

[FreakinDJ]

6. You can rely on China to incite as much panic as possible on US debt

it can ONLY strengthen their position