Chinese Ratings Agency Says US Has Already Defaulted
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The U.S. has already defaulted, said Chinese ratings house Dagong Global Credit Rating Co. Ltd Friday.
By allowing the dollar to weaken against other currencies, Washington has officially been defaulting over the last several months. The shift has been eroding the wealth of creditors, including China, Dagong said.
The agency recently cut U.K.'s rating from AA- to A+. The firm also downgraded the U.S. twice -- its latest cut from AA- to A+ -- putting it on par with the U.K.
Notably, the recent downgrade still doesn't peg the U.S. as "junk," which it should be if it were already defaulting.
By allowing the dollar to weaken against other currencies, Washington has officially been defaulting over the last several months. The shift has been eroding the wealth of creditors, including China, Dagong said.
The agency recently cut U.K.'s rating from AA- to A+. The firm also downgraded the U.S. twice -- its latest cut from AA- to A+ -- putting it on par with the U.K.
Notably, the recent downgrade still doesn't peg the U.S. as "junk," which it should be if it were already defaulting.
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