China Downgrades US Credit Rating From A- to BBB+

China Downgrades US Credit Rating From A- To BBB+ -Zero Hedge
“Chinese credit rating agency Dagong downgraded US sovereign ratings from A- to BBB+ overnight, citing ‘deficiencies in US political ecology’ and tax cuts that ‘directly reduce the federal government’s sources of debt repayment’ weakening the base of the government’s debt repayment….’Deficiencies in the current U.S. political ecology make it difficult for the efficient administration of the federal government, so the national economic development derails from the right track,’ Dagong said adding that ‘Massive tax cuts directly reduce the federal government’s sources of debt repayment, therefore further weaken the base of government’s debt repayment.’….’The virtual solvency of the federal government would be likely to become the detonator of the next financial crisis,’ the Chinese ratings firm said….’The market’s reversing recognition of the value of U.S. Treasury bonds and U.S. dollar will be a powerful force in destroying the fragile debt chain of the federal government,’ Dagong said.”

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