On October 16, 2013 EST, the U.S. Congress approve(d) the resolution to end the partial government shutdown and raise the debt ceiling. By such means the U.S. Federal Government can avoid the default crisis for the moment. However the fundamental situation that the debt growth rate significantly outpaces that of fiscal income and GDP remains unchanged. For a long time the U.S. government maintains its solvency by repaying its old debts through raising new debts, which constantly aggravates the vulnerability of the federal government’s solvency. Hence the government is still approaching the verge of default crisis, a situation that cannot be substantially alleviated in the foreseeable future. In light of these facts, Dagong Global Credit Rating Co., Ltd. (hereinafter referred to as “Dagong”) decides to downgrade the local and foreign currency credit ratings of the U. S., which has already been on the negative watch list, to A- from A, maintaining a negative outlook. The rationale that supports the conclusion is as follows:
1. The partial U.S. federal government shutdown apparently highlights the deterioration of the government’s solvency, pushing the sovereign debts into a crisis status. The U.S. federal government announced its shutdown on Oct. 1, 2013, a radical event that reflects the liquidity shortage aroused by depleting stock of debts without the increase of new debts, directly resulting in the federal government lack of the funds for its normal function. The partial U.S. government shutdown is an inevitable outcome of its long-term failure to pay its excessive debts.

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Dagon’s full US outlook:

On October 16, 2013 EST, the U.S. Congress approves the resolution to end the partial government
shutdown and raise the debt ceiling. By such means the U.S. Federal Government can avoid the default
crisis for the moment. However the fundamental situation that the debt growth rate significantly
outpaces that of fiscal income and GDP remains unchanged. For a long time the U.S. government maintains
its solvency by repaying its old debts through raising new debts, which constantly aggravates the
vulnerability of the federal government’s solvency. Hence the government is still approaching the verge
of default crisis, a situation that cannot be substantially alleviated in the foreseeable future. In
light of these facts, Dagong Global Credit Rating Co., Ltd. (hereinafter referred to as “Dagong”)
decides to downgrade the local and foreign currency credit ratings of the U. S., which has already been
on the negative watch list, to A- from A, maintaining a negative outlook. The rationale that supports

 

the conclusion is as follows:

 

1. The partial U.S. federal government shutdown apparently highlights the deterioration of the

government’s solvency, pushing the sovereign debts into a crisis status. The U.S. federal government
announced its shutdown on Oct. 1, 2013, a radical event that reflects the liquidity shortage aroused by
depleting stock of debts without the increase of new debts, directly resulting in the federal government
lack of the funds for its normal function. The partial U.S. government shutdown is an inevitable outcome
of its long-term failure to pay its excessive debts. During the fiscal years from 2008 to 2012, the
ratio of the federal government’s stock of debts to fiscal income increased from 4.0 to 6.6. Under such
circumstances, the federal government that can hardly sustain its own expenses, not mentioning
collecting reliable income to cover its huge amount of debts. Substantial decrease of the U.S.
government’s solvency is proven by this shutdown incident, which pushes the federal government into a

crisis position of debt cliff and default.

 

2. Since the outbreak of the U.S. debt crisis in 2008, the deviation between the federal government’s

sources of debt repayments and the country’s real wealth creation capacity has been constantly
broadened. The huge amount of government debts that lack the basis of repayment always stands on the
brink of default, and this situation is difficult to change in the long term. The federal government
debt stock increased by 60.7% between 2008 and 2012 when the nominal GDP increased by only 8.5% while
the fiscal income decreased by 2.9%, which indicates that fiscal income is losing its means as the
primary source of debt repayments. Because of the fact that the federal government now depends highly on
borrowing new debts to repay its old ones, vulnerability of its debt chain is accumulated so that
technically debt default may occur at any time. For the fundamentals of government debt repayment
condition will not be essentially improved, the federal government’s debt cliff will persist in the long
term.

 

3. Liquidity has been continuously injected into international financial markets from the U.S., which

indirectly plays a key role in combating against the risk of government default. This implicit debt
default behavior infringes upon the benefits of creditors. In order to avoid the debt default caused by
the lack of debt repayment sources such as fiscal incomes, the U.S. government has been taking advantage
of the international currency dominance of the U.S. dollar to monetize its debts and has been taking
quantitative easing monetary policy to maintain its government solvency since 2008. The devaluation of
the stock of debts hereby directly damages the creditors’ interests. Dagong estimates that the
depreciation of the U.S. dollar caused a loss of USD628.5bn on foreign creditors over the years of 2008

to 2012.

 

4. The debt ceiling has been extended continually, increasing the total amount of the federal government

debts. In order to avoid the sovereign debt default, it becomes an inevitable choice for the U.S.
government to repay its old debts through raising new debts. The fact that the debts grow faster than
the fiscal incomes will further impair the federal government’s solvency. Ever since Obama’s
inauguration in 2009, the U.S. Congress has extended the debt ceiling for five times, reaching a total
volume of USD5.1tn. This further raise of the debt ceiling shows the government’s incapability of
improving its solvency by improving the basic economic and fiscal elements.

 

5. The Democrats and the Republicans of U.S. do not have a consistent strategy target to solving the

sovereign debt problem. As the issue of paying sovereign debts falls into a tool that the parties make
use of to realize their own interests, the political environment is unfavorable for eliminating the risk
of its sovereign debt default in the long term. The recurrence of the bi-partisan conflict over debt
ceiling once again reveals the U.S. superstructure’s incapacity to solve national debt crisis. A debt
crisis evolves into a political crisis, which in turn exacerbates the debt crisis. Such political
environment over debt repayment renders the dim and pale prospect of the U.S. federal government’s
solvency.

 


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    • @Ranger
      A. Notice the Masonic pyramid-shaped logo with a semblance of an all-seeing eye which Dagong has chosen? There are no coincidences
      B. Not at all, while I do enjoy good debates (they stretch the mind), I have no time for urine competitions: the only urine I see is the pipi humour dirty old men post on finance blogs.
      C. I care about you. Prov. 26:7 says “faithful are the wounds of a friend, but the kisses of an enemy are deceitful”. This place is full of men whose consciences are seared by their sins and who will tell you that ther eis nothing wrong with you. The truth is that without Jesus Christ (not the Masonic Hercules rendition), you are guilty of your sins before God and on your way to the Eternal Lake of Fire”. Your SD buddies won’t tell you that. I care about you and will be praying for you.
      D. Allow me to quote from Albert Pike, Sovereign Grand Master in his book Morals and Dogma :
      Masonry, like all the religions, all the Mysteries, Hermetic, and Alchemy, conceals its secrets from all except the Adepts and Sages, or the Elect, and uses false explanations and misinterpretations of its symbols to mislead those who deserve only to be misled; to conceal the Truth, which it calls Light, from them, and to draw them away from it”
      Masonry, of which you claim to be a 32 degree initiate, has NOTHING to do with “God and Country” as claimed, but has EVERYTHING to do with “Satan and the New world Order”. Masonic allegiance isn’t to God and country but to the Lodge and fellow masons, doing the bidding not of Jehovah God but of Lucifer under the guise of “JAHBALON”.
      You are bound by the oaths you’ve taken to hide the true meaning of your organization and to deceive all outsiders (including me and any other non-Mason on SD).
      If not, you’re a bad 32 degree Master Mason.
      So I’m not your enemy, I care about you and don;t want to see you in the Lake of Fire. Renounce Masonry and trust in Jesus alone.

  1. The name of this agency is ‘Dagong’   … meaning, ‘the gong’ … meaning the end.
     
    Used on the gong show, Rank Films, at the end of Bohemian Rhapsody by Queen, in boxing to signal start and end, ‘Falun Gong: the end of days’ is a book about persecution of a religious group in China, and includes UFOs, apocalypse, and all the BS which has become the ‘normal’ of these days. These names are significant. 
     
    As in the names of Asiana Airlines pilots, whose plane crashed on 6.7.13 … Captain Sum Ting Wong, Wee tu lo, Ho Lee Fuk, and Bang Ding Ow … http://www.youtube.com/watch?v=9bhUld9RBkw   Congratulations to this presenter, who did not show any amusement, but then of course, MSM business is deadly serious.
    This crash, along with the other train crashes, predicts that the global system is about to fall apart. This is shown by the incredible work of TheGroxt1 in this and all his videos … http://www.youtube.com/watch?v=XAA6fz9b5NI&list=PLOafvRzzLyXWoIiY7biUaZWmLS05LEeZA
     

    • Chief, that is some of the most ridiculous shit Ive ever heard. Jack in the Box, a plane crash and Aaron Hernandez are the signs of the coming Apocalypse. And I thought Jack Van Impe and Hal Lindsey were a little out there.
       
      This has no business being posted here. Get a grip.

    • @UglyDog … what revealed these names were a prank? Do you have a link, or something?
       
      @Bay of Pigs … this is a response to the article and relates to its purpose, and the purpose of many such articles. It has more place on silverdoctors than the Fukushima lies. You will have noticed that the scope of silverdoctors is pretty damn wide these days, and seems to include pretty much anything. Take it up with Dr Anonymous.

    • I have no problem you posting your own thoughts and ideas Chief. Leaving the religious crackpots like that particular nutcase would surely not be asking too much of you.

    • @UglyDog … thanks for the link, and if it was true, it would not be the first time I had been got hook, line and sinker … luckily I am not proud either :) But, what I believe about this is that the MSM put out the report in the first place to telegraph that something is wrong, that we are too low, that ‘Holy F***’ and that people will get hurt, and then later they put out the report you mentioned to save the face of the network. But, the message was put out there, like 1 million other such things on MSM, video games, internet, etc.
       
      @Bay of Pigs … I take your point .. it appears that I am taking seriously everything this guy says, but I am not. I think he is a genius spotting all that stuff, but I don’t believe in god and so I don’t believe that god did all this (although that’s what he thinks) .. but the only ones to have a chance of spotting all this symbolism would be those who knew the bible backwards; I believe people put all this in place to indicate what will happen, to emphasise that it is god that’s doing it (in order to hide themselves and their roles) and to connect it with the bible, which is widely accepted to be valid (I don’t believe it is valid .. I believe it is yet another programming/distraction tool).

  2. If anyone is interested, the 4 names were announced by a misguided Fox anchorwoman who read them off a teleprompter.  It was a joke put up the telepromtpter writer.  I think he was fired.  The pilots were Korean, I think, so the whole goof up was completely asinine.  The whole Asian community was in an uproar that their names were mocked. 
    PS the French rating service called Fitch downgraded the US debt last week and was told to STFU by their government. Sovereign government that hold the world’s reserve currency aka the US, cannot be rated since their bonds are backed by the full faith and credit of the Binford 1200 printing machine, also known as the Fed. The Debt to GDP is now meaningless.
    I am a little surprised that the French President had an hand in jerking a knot in Fitch’s tail considering that he has a major case of ‘Rouge Derriere’ due to the disclosure that the NSA has been peeking up his bumbershoot, reading his emails. 70 million in all. Merde

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