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These commie chinks love to tell lousy jokes. If you owe the bank $100 that's your problem. If you owe the bank $1000 billion, that's the bank's problem. Since China buys so much US Treasury debt, who has the problem?
China's Dagong lowers US sovereign ratings to Peru level following tax cuts
BEIJING/HONG KONG, Jan 16 (Reuters) - China’s Dagong Global Credit Rating Co, one of the country’s major ratings firms, cut the sovereign ratings of the United States to BBB+ from A-, saying the tax reductions announced last month weakened Washington’s ability to repay debt.
The ratings, which are now level with those of Peru, Colombia and Turkmenistan on the Beijing-based agency’s scale of creditworthiness, have also been put on a negative outlook.
In a statement on Tuesday, Dagong warned that the United States’ increasing reliance on debt to drive development would erode its solvency. It made specific reference to President Donald Trump’s tax package, which is estimated to add $1.4 trillion over a decade to the $20 trillion national debt burden.
“Deficiencies in the current U.S. political ecology make it difficult for the efficient administration of the federal government, so the national economic development derails from the right track,” Dagong said.
“Massive tax cuts directly reduce the federal government’s sources of debt repayment, therefore further weaken the base of government’s debt repayment.”
The U.S. embassy in Beijing could not immediately comment.
China's Dagong lowers US sovereign ratings to Peru level following tax cuts
BEIJING/HONG KONG, Jan 16 (Reuters) - China’s Dagong Global Credit Rating Co, one of the country’s major ratings firms, cut the sovereign ratings of the United States to BBB+ from A-, saying the tax reductions announced last month weakened Washington’s ability to repay debt.
The ratings, which are now level with those of Peru, Colombia and Turkmenistan on the Beijing-based agency’s scale of creditworthiness, have also been put on a negative outlook.
In a statement on Tuesday, Dagong warned that the United States’ increasing reliance on debt to drive development would erode its solvency. It made specific reference to President Donald Trump’s tax package, which is estimated to add $1.4 trillion over a decade to the $20 trillion national debt burden.
“Deficiencies in the current U.S. political ecology make it difficult for the efficient administration of the federal government, so the national economic development derails from the right track,” Dagong said.
“Massive tax cuts directly reduce the federal government’s sources of debt repayment, therefore further weaken the base of government’s debt repayment.”
The U.S. embassy in Beijing could not immediately comment.
