Changes

==Downgrade of U.S. credit worthiness==

==Downgrade of U.S. credit worthiness==

The Chinese credit rating agency, Dagong Global, downgraded the long term sovereign credit rating of the '''[[United States]]''' from “AA” to “A+“, which reflects the U.S. deteriorating debt repayment capability. The agency cited,  

The Chinese credit rating agency, Dagong Global, downgraded the long term sovereign credit rating of the [[United States]] from “AA” to “A+“, which reflects the U.S. deteriorating debt repayment capability. The agency cited,  

:''[http://www.dagongcredit.com/dagongweb/uf/USARatingReport.pdf serious defects in the United States economic development and management model] will lead to the long-term recession of its national economy...Subject to the economic development model of the United States, the credit crisis is far from over, and the U.S. economy will be in a long-term recession…

:''[http://www.dagongcredit.com/dagongweb/uf/USARatingReport.pdf serious defects in the United States economic development and management model] will lead to the long-term recession of its national economy...Subject to the economic development model of the United States, the credit crisis is far from over, and the U.S. economy will be in a long-term recession…

The ''New York Times'' reports officials from [[China]] to [[Germany]] to [[Brazil]] suggest " Washington's addiction to debt has greatly diminished its credibility." Jeffrey E. Garten of the Yale School of Management remarked, "the U.S. is reinforcing views in [[France]] and China, among others, that the [[Obama administration monetary policy|entire monetary system]] is a political toy of a dysfunctional U.S. political system."<ref>http://www.nytimes.com/2010/11/10/business/global/10global.html?_r=1&ref=group_of_20</ref>

The ''[[New York Times]]'' reports officials from [[China]] to [[Germany]] to [[Brazil]] suggest " Washington's addiction to debt has greatly diminished its credibility." Jeffrey E. Garten of the Yale School of Management remarked, "the U.S. is reinforcing views in [[France]] and China, among others, that the [[Obama administration monetary policy|entire monetary system]] is a political toy of a dysfunctional U.S. political system."<ref>http://www.nytimes.com/2010/11/10/business/global/10global.html?_r=1&ref=group_of_20</ref>

 

Martin Feldstein notes the [[Obama administration]]'s aim to [[Debt monetization|monetize the debt]] is "a dangerous gamble with only a small potential upside benefit and substantial risks of creating asset bubbles that could destabilise the global economy." Feldstein continues, "The greatest danger will then be to leveraged investors, including individuals who bought these assets with borrowed money and banks that hold long-term securities. These risks should be clear after the recent crisis driven by the bursting of asset price bubbles. Although the specific asset prices that are now rising are different from last time, the possibility of damaging declines when bubbles burst is worryingly similar."<ref>http://www.nber.org/feldstein/ft11032010.html</ref>

==See also ==

==See also ==