Dagong Says Will Cut US Rating As Early As Monday

In the latest game of finger-pointing, Chinese credit rating agency Dagong threatens to lower its rating on US debt next week.  My question is:  what took them so long?

http://www.zerohedge.com/news/dagong-says-will-cut-us-rating-early-monday

Safest credit ratings

http://www.economicpolicyjournal.com/2010/09/us-about-to-drop-off-list-of-top-ten.html

According to CMA Datavision, the U.S. ranks below nine other countries in terms of the safety of its sovereign debt. Norway is #1 followed by Finland and Germany.

Sweden and Hong Kong are new members of top ten list, displacing France and Belgium.

California facing IOU's again

http://www.ft.com/cms/s/0/3e65bb32-abb9-11df-9f02-00144feabdc0.html

US credit rating downgraded--by China

http://www.zerohedge.com/article/us-stripped-aaa-credit-ratingby-china

More quantitative easing

As predicted, and against a backdrop of Fed-speak about "exit strategies" several months ago, the Fed is continuing to implement quantitative easing, i.e., printing money out of thin air. The Fed will do everything in its power to avoid another Greek "austerity" situation, delaying the inevitable currency crisis as long as possible.

Treasury Secretary Tim Geithner has also declared the US government will never lose its AAA credit rating. Moody's, the credit ratings agency, says the possibility is very real, due to soaring debt levels and deficits. Fed Chairman Ben Bernanke, former Treasury Secretary Hank Paulson, and former New York Fed Governor Geithner completely missed the housing bubble, financial crisis, and deep recession in their testimonies. Why should any of us believe them now?

https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi67iwyHumnupeWuGg7qEQ2To9GBola6OEBode3_nmkIxKUE4AqQOSD2JgQ5ueibOXmzWMb_watYDMc0WFncI18s84s3ZLO5SjWlIdz2HFDsv7ta9S2GaO48XUnlHsrODf4sAUmosmdK24r/s1600-h/BOGAMBSL.JPG

Berkshire Hathaway downgrade

In the "what in the heck is this world coming to?" category, Berkshire Hathaway's credit rating was officially downgraded from the highly coveted "AAA" to "AA+" by S & P. Warren Buffett, Chairman of Berkshire Hathaway and considered the greatest equities investor of all-time by consensus, has made huge bets on an economic recovery, recently acquiring Burlington Northern railroad for $26 billion.

The acquisition required cash, stock, and $8 billion in notes, now rated AA+. This reduced Berkshire's cash position, increased their debt levels, and introduced risk into the Berkshire holding company's business model.

http://www.usatoday.com/money/markets/2010-02-05-aaabuffett05_ST_N.htm

Greece downgraded

Greek equities and bonds tanked as their government debt was downgraded by credit ratings agencies, as fears of a default were raised. I predicted that after Iceland's economy collapsed, other countries would follow suit. Other countries at risk of default include Dubai, Ireland, Latvia, Hungary, Argentina, Venezuela, Lithuania, Ukraine, Japan, Spain, Italy, the UK, and believe it or not, the US, as all these countries are technically insolvent, burdened with too much debt. The cascading dominoes have only begun to fall...

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/6755179/Greece-put-on-standby-for-debt-downgrade.html

The USDollar will eventually share the same fate as the Drachma, as do all fiat currencies.