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Dollar to Be 'Discarded' by World: China Rating Agency
08-08-2011, 11:54 AM #1
JayRodney ⓐⓛⓘⓔⓝ
Posts:31,572 Threads:1,443 Joined:Feb 2011
Quote:The man who leads one of China’s top rating agencies says the greenback’s status as the world’s reserve currency is set to wane as the world’s most powerful policy makers convene to examine the implication of S&P’s decision to strip the United States of its triple “A” rating.
In comments emailed to CNBC, Guan Jianzhong, chairman of Dagong Global Credit Rating, said the currency is “gradually discarded by the world,” and the “process will be irreversible.”

Dagong made headlines last week when it became the first rating agency to cut its U.S. credit rating from “A+” to “A” after policymakers in Washington failed to act in a timely manner to lift its debt celing.

However, the announcement failed to register in the markets as investors have yet to decide whether to take the Beijing-based company seriously.

“It has been around for quite a while, but I do not know of anyone assigning risk assessment to thir portfolio according to Dagong,” said Steen Jakobsen, chief economist at Saxo Bank. “However, clearly the rating industry could do with some competition and deviance from firm beliefs.”

But Guan’s observation—made just before S&P slashed its ratings on the world’s biggest economy—now seems strangely prescient.
Read more: http://www.cnbc.com/id/44050325
This could turn very ugly for what's left of the US economy. The raising of the debt ceiling actually seems to have had a more negative world impact than anything. There are signs all over that something really big is about to go down.

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08-08-2011, 02:26 PM #2
Shadow Mrs. Buckwheat
Posts:12,775 Threads:1,181 Joined:Feb 2011
Then wouldn't China want to put their own Yuan out as the next reserve currency? Float it instead of pegged to the US$ like has infuriated Washington for so long? Hmmm. I have a few Yuan denominated assets, would work for me beercheer.gif
08-08-2011, 02:36 PM #3
JayRodney ⓐⓛⓘⓔⓝ
Posts:31,572 Threads:1,443 Joined:Feb 2011
It's logical Shadow, the Yuan could very well be the next reserve currency, and if it makes you some money hi5.gif well, nothing wrong with that, and nice investment strategy!

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