The political skirmishes and quarrels that are boiling up in the backrooms of the White House have just been stirred up for the United States, one of the world?s biggest creditors. The Chinese government, who at this time has its hands on more than a billion US Treasury bonds, had to reprimand the United States and urge them to take immediate measures in order to avoid defaulting on its debt on August 2.
Considering Moody´s recent rating, Hong Lei, spokesperson for China?s minister of the exterior, said to Reuters that "the United States government should adopt responsible policies that vouch for its investors best interests."
A reprimand similar to something the Chinese government said last April when Standard & Poor´s lowered its view on US debt from stable to negative. Still, Moody´s decision put many Asian governments in check; because weakness of the dollar doesn´t do anything more than feed possible bubbles caused by increased capital flows.
In this sense, Moody?s signaled that they see "increased chances" that the United States Congress doesn´t agree to increase the ceiling on their debt, which would cause the US Treasury to default. So Moody´s decided to zoom in on the United States? AAA rating (which is the highest possible band) and testify that their levels of debt are unsustainable.
Yesterday, the Chinese rating agency Dagon Global Credit Rating, which lowered its perspective on the US economy last November, said that it has put the world´s premier economy under review once more given its comatose growth, lack of solvency and high deficit.
