DAGONG DOWNGRADES U.S. CREDIT RATINGS TO `A-’ FROM ‘A

[itaskol]

DAGONG DOWNGRADES U.S. CREDIT RATINGS TO `A-’ FROM ‘A’!!! Markets Are Down After Last-Minute Deal!!! Gold Jumps Most in Four Weeks on Weak Dollar!!! | InvestmentWatch

DAGONG DOWNGRADES U.S. CREDIT RATINGS TO `A-’ FROM ‘A’!!! Markets Are Down After Last-Minute Deal!!! Gold Jumps Most in Four Weeks on Weak Dollar!!!
October 17th, 2013
Gold Jumps Most in Four Weeks on Dollar, Dagong U.S. Downgrade

Gold jumped the most in four weeks in London after Dagong Global Credit Rating Co. cut its credit rating for the U.S. and on speculation the Federal Reserve will postpone slowing stimulus. Silver rallied.

Congress voted yesterday to raise the U.S. debt limit, ending a government shutdown that began Oct. 1 that has taken $24 billion out of the economy. Dagong cut the local and foreign currency credit ratings of the U.S. today to “A-” from “A.”

Gold is set for the first annual drop in 13 years as some investors lost faith in the metal as a store of value and on speculation the Fed will slow debt purchases. Policy makers unexpectedly refrained from curbing bond buying at its Sept. 17-18 meeting. The Bloomberg U.S. Dollar Index slumped to the lowest since February as BlackRock Inc. and Pacific Investment Management Co. said the Fed will maintain stimulus.

“There was a knee-jerk reaction to the Chinese downgrading,” said David Wilson, an analyst at Citigroup Inc. in London, which estimated about 10 million ounces of gold and 16 million ounces of silver traded after the report. “When the ultimate worry is about the dollar, maybe you go to gold. I still think the bigger issue of tapering is still there although we say it’s off the table for the time being.”

Gold Jumps Most in Four Weeks on Dollar Slump, Stimulus - Bloomberg

Gold Spiked Above $1300
Gold Spiked Above $1300 - Business Insider
CHINA: America’s Founding Fathers Would ‘Turn In Their Graves’ If They Witnessed This Political Brinksmanship

Read more: CHINA: Founding Fathers Would 'Turn In Their Graves' - Business Insider

Markets Are Down After Last-Minute Deal

As expected, Congress passed and President Obama signed a deal to end the government shutdown and raise the debt ceiling.



While the deal is a relief, it appears largely priced into the markets, which are mostly down around the world.

Britain’s FTSE is down 0.1%.

France’s CAC 40 is is down 0.2%.

Germany’s DAX is down 0.2%.

Italy’s FTSE MIB is is down 0.4%%

Spain’s IBEX is is down 0.2%.

Japan’s Nikkei closed up 0.8%.

 

[Destro]

It should be downgraded to Junk status. The CPC is stupid to buy these junk bonds. Would be better off using these reserves to buy other assets (gold, energy, raw materials, companies, infrastructure, loans to poor countries, etc) around the world.

 

[Cyberian]

Why does China carry around $1.4 trillion of US debt? What does China get out of it in return? Interest or something? How much has China actually profited by shouldering American debt so far?

 

[itaskol]

Why does China carry around $1.4 trillion of US debt? What does China get out of it in return? Interest or something? How much has China actually profited by shouldering American debt so far?

for many reasons....
such like USA is also our No1. customer...