The Dagong Global Credit Rating Agency stated “The US decision to raise the borrowing ceiling will not change the fact that the growth of its debt has outpaced its overall economic growth and fiscal revenue. “It may further erode the country’s debt paying ability in the coming years.”
It also issued a negative outlook: “The rise of the US-debt ceiling helped temporarily avoid a debt default but has not improved its solvency and the increasing government debt burden will deteriorate the US sovereign debt crisis.”
A major Chinese news agency made another statement reflecting the sentiment of the Chinese people “China has every right to demand the US address its structural debt problems and safeguard China’s dollar assets. Washington needs to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone. To cure its addiction to debts, the US has to re-establish the commonsense principle that one should live within one’s means.”
This major move by the Chinese rating agency was hardly noticed or reported on any major news network, but its implications are far more reaching. China is a major holder of US debt and the statements show that the US is running out of time before China will no longer tolerate US debt and fiscal irresponsibility. In the long-term this has a very positive impact on gold and silver, because China will eventually be forced away from holding US debt and dollars. This will force them into additional asset classes and China in the past has favored both gold and silver.
It also issued a negative outlook: “The rise of the US-debt ceiling helped temporarily avoid a debt default but has not improved its solvency and the increasing government debt burden will deteriorate the US sovereign debt crisis.”
A major Chinese news agency made another statement reflecting the sentiment of the Chinese people “China has every right to demand the US address its structural debt problems and safeguard China’s dollar assets. Washington needs to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone. To cure its addiction to debts, the US has to re-establish the commonsense principle that one should live within one’s means.”
This major move by the Chinese rating agency was hardly noticed or reported on any major news network, but its implications are far more reaching. China is a major holder of US debt and the statements show that the US is running out of time before China will no longer tolerate US debt and fiscal irresponsibility. In the long-term this has a very positive impact on gold and silver, because China will eventually be forced away from holding US debt and dollars. This will force them into additional asset classes and China in the past has favored both gold and silver.
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