China: ‘Dollar to Be Discarded by World’

Sunday, August 7, 2011

Prior to Standard & Poor’s downgrading U.S. debt from AAA to AA — the first time this has happened in American history, Guan Jianzhong, chairman of Dagong Global Credit Rating, said the currency is “gradually discarded by the world,” and the “process will be irreversible.”

The comments were sent to CNBC in an email.

Guan’s observation, now strangely prescient.

“I think the most pressing issue facing the U.S. at the moment is to reflect on the crisis which happened in relation with the debt ceiling. They [the U.S.] should get a clear understanding that the continuous decline of the debt service capability will inevitably result in the outbreak of a sovereign debt crisis.”

China, the largest holder of U.S. debt, valued at approximately $1.2 trillion.

This entry was posted in China, International News, News, U.S. Economy and tagged , , , . Bookmark the permalink.

5 Responses to China: ‘Dollar to Be Discarded by World’

  1. DMason says:

    I never thought we would get to the point when Communist China is lecturing the USA on monetary policy but, here we are and the telling thing is, Communist China is correct.

  2. JollyRoger says:

    The Chinese, who would be in some serious economic doo-doo had the Rushpubliscums NOT set up those tax policies, are hardly in a position to whine; after all, it was Rushpubliscum tax policy that encouraged American oligarchs to offshore all those jobs to China. If we DIDN’T have this debt, they’d be nowhere near as far along as they are economically. So I really don’t give much credence to anything they have to say.

    However, the third Reconstitution post was titled “Dollars As Wallpaper,” and that post was made November 11, 2004. So absolutely no one should be surprised by any of this.

  3. Marcus Ybanez says:

    The US Treasury is literally starved for revenue. So what does our fearless leader do? He decides to “compromise” with Mitch McConnell and extend the Bush-era tax cuts on the rich.

    This is no less than treason and the guy should be impeached.

  4. JollyRoger says:

    Impeached and imprisoned. That kind of incompetence was criminal. Like he didn’t know what they’d turn around and do?

  5. ben says:

    i dont know alot but im scared for my children. i brought them in to this world and i hope they make it.

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