Wednesday, July 21, 2010

China Rating Agency Rips West

It's an interesting story which appeared in today's Financial Times. Here's one segment:

“The US is insolvent and faces bankruptcy as a pure debtor nation but the rating agencies still give it high rankings ,” [head of China's largest credit rating agency] Mr Guan said. “Actually, the huge military expenditure of the US is not created by themselves but comes from borrowed money, which is not sustainable.”

A wildly enthusiastic editorial published by Xinhua , China’s official state newswire, lauded Dagong’s report as a significant step toward breaking the monopoly of western rating agencies of which it said China has long been a “victim”.

“Compared with the US’ conquest of the world by means of force, Moody’s has controlled the world through its dominance in credit ratings,” the editorial said.

No comments:

Post a Comment