Quoted Text

China ratings house says US defaulting:

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

Maybe box will listen to the Chinese since won't list to the "right winger conspiracy".  The economy is weak and our dollar is weakening NOT because we don't tax the "rich" enough to pay for government entitlements, it's because we keep printing money and weakening the dollar in an attempt to stop the recession, causing prices to rise or INFLATION!!!  If they let the markets correction to happen like they should, be prepared for interest rates to skyrocket and the bottom fall out of the value of your home.  OR, they do a QE3 and set off a period of hyper inflation.  

Do you think its true that our interest payment  covers 80 % of China's military cost  ..  ?