Bloomberg Alert: Chinas Dagong Cuts US CREDIT RATING TO A+ !!!
This can't be good news for Gold shorts can it ? got silver ? got gold ? were you snookered by red faced Gartner and Nadler ?
China's Dagong Downgrades U.S. to A+ on Quantitative Easing, Xinhua Says By Joshua Fellman - Nov 9, 2010 11:09 AM ET Tweet LinkedIn Share Business ExchangeBuzz up!DiggPrint Email .China’s Dagong Global Credit Rating Co. cut its credit rating for the U.S. to A+ from AA because of a Federal Reserve plan to purchase bonds to spur growth and inflation, according to Xinhua News Agency.
The credit outlook for the U.S. is negative amid deteriorating debt repayment capability and a “drastic” drop in the government’s intention to repay debt, Dagong said, as cited by the state-controlled news agency. The Fed’s quantitative easing policy will erode the value of the dollar and is against the interests of creditors, the company said.
“Serious defects in the U.S. economy will lead to long- term recession and fundamentally lower national solvency,” Dagong said, as cited by Xinhua.
Dagong, seeking to become an alternative to Standard & Poor’s Corp., Moody’s Investors Service and Fitch Ratings, ranks China’s debt higher than that of the U.S. and Japan, citing widening deficits in the developed world. Global ratings methodology is “irrational,” Dagong Chairman Guan Jianzhong said in July, and “cannot truly reflect repayment ability