Thursday, October 17, 2013

Gold Catalyst: Chinese agency downgrades US credit rating GLD, MUX, TNR.v, GDX

  

  We have the downgrade of the US rating where it matters most: by the Buyers of US IOUs. S&P or Moody's will not dare to make the move as DOJ was very fast to remind S&P who is in charge, but Fitch this time was more following the real mess coming out of Washington, DC with its Negative Watch for US rating.
  Now the desire of China to buy all available physical Gold can be put into perspective of long term state-level planning to diversify its currency reserves out of US Dollar based assets.

Gold Catalyst - John Williams: Very Serious Trouble in this Next Year - Weaker Dollar and Hyperinflation GLD, MUX, TNR.v, GDX

 "John Williams is very respected economist who is providing  the real economic data, which is not massaged by the government desires and wishful thinking. His view at the crucial juncture for US Economy and Health of US dollar us very important to share now.
  Gold celebrates today "The Deal" and it looks like that Debt Ceiling Raise Does Mean Increase in the Amount of debt after all."



Jim Rickards – Why China is Buying Gold & Calling for a De-Amercanized World GLD, MUX, TNR.v, GDX





The Star Online:

Chinese agency downgrades US credit rating

BEIJING: A Chinese ratings agency downgraded its US sovereign credit rating Thursday despite Washington's resolution of the debt ceiling deadlock, warning that fundamentals for a potential default remained "unchanged".
Dagong lowered its ratings for US local and foreign currency credit from A to A-, maintaining a negative outlook, the agency said in a statement.
The announcement came after the US Congress passed and President Barack Obama signed a bill that extends the nation's borrowing authority and ends a two-week government shutdown.
"The fundamental situation that the debt growth rate significantly outpaces that of fiscal income and gross domestic product remains unchanged," Dagong said in the statement, adding Washington's solvency was vulnerable as old debts were still repaid through raising new debts.
"Hence the government is still approaching the verge of default crisis, a situation that cannot be substantially alleviated in the foreseeable future," it said.
Dagong made headlines in August 2011 when it lowered its main rating for US sovereign debt after Congress passed an earlier bill to raise Washington's debt ceiling.
The agency, which is far less prominent than long-established Western competitors including Moody's, Fitch and Standard and Poor's, has been working to further raise its profile.
China's official news agency Xinhua said Thursday in a bylined commentary that US politicians had held the rest of the world hostage in the crisis.
But Beijing welcomed the agreement, saying it will contribute to global economic stability – AFP."

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