China’s leading credit rating agency has stripped America, Britain, Germany and France of their AAA ratings, accusing Anglo-Saxon competitors of ideological bias in favour of the West.
Dagong Global Credit Rating Co used its first foray into sovereign debt to paint a revolutionary picture of creditworthiness around the world, giving much greater weight to “wealth creating capacity” and foreign reserves than Fitch, Standard & Poor’s, or Moody’s.
The US falls to AA, while Britain and France slither down to AA-. Belgium, Spain, Italy are ranked at A- along with Malaysia.
Dominique Strauss-Kahn, chief of the International Monetary Fund, agreed on Monday that the rising East is a transforming global force. “Asia’s time has come,” he said.
The IMF expects Asia to grow by 7.7pc in 2010, vastly outpacing the eurozone at 1pc and the US at 3.3pc. Emerging nations hold 75pc of the world’s $8.4 trillion (£5.6 trillion) of reserves.
Dagong rates Norway, Denmark, Switzerland, and Singapore at AAA, along with the commodity twins Australia and New Zealand.
Chinese president Hu Jintao said in April that the world needs “an objective, fair, and reasonable standard” for rating sovereign debt. Dagong appears to have stepped into the role, saying its objective was to assess countries using methods that would “not be affected by ideology”.
“The reason for the global financial crisis and debt crisis in Europe is that the current international credit rating system does not correctly reveal the debtor’s repayment ability,” said Guan Jianzhong, Dagong’s chairman.
The agency, known in China for rating companies, said its goal is to “correct the defects” of the existing system and offer a counter-weight to Western agencies.
Dagong appears to base growth potential on past performance but this can be misleading, especially in states enjoying technology catch-up. Japan was a high-flyer in 1970s and 1980s before stalling when the Nikkei bubble burst. It has been trapped in near perma-slump ever since.
China may start to face some of Japan’s demographic problems by the middle of this decade when the working age population peaks.
The Western rating agencies put a high value on a long-established rule of law and government institutions that have proved resilient over many decades, or even centuries. China’s political system may appear strong – as did the Soviet Union’s – but only time will tell whether its foundations are brittle. The violent upheavals of the Cultural Revolution are still a very fresh memory.
http://www.telegraph.co.uk/finance/china-business/7886077/Chinese-rating-agency-strips-Western-nations-of-AAA-status.html
Technicaly the contemporary “Rome” that is the USA is insolvent. The only reasons why its still the big guy are:
a) sentimental reasons/Anglo-saxon networking
b) Military might (its spending on this is more than the rest of the world. Combined. China is distant second)
Peter Tosh’s prediction is nigh.
The question is how can Afrikans position themselves for the increasing joblessness?
China’s economic rise must be supported and the oriental ascendency on the global markets is not hostile to african interests. One only needs to look at history to support this theory that it was the West and Arabs that colonised africa in the past and not China nor India. There is further proof that original African orthodox religion is temperemantally not diagonally opposed to native oriental faiths, Hinduism and Bhuduism and as such the basis for cultural and economic cooperation between Africa and the eastern tigers can be firm and beneficial for all concerned. The global rise of china economy can benefit humanity greatly by shuttering the western financial monopoly thereby democratising the world economic systems for the benefit of the greatest number of people. Africa’s answers amongst others is to raise stakes in political accountability, economic performance and robust trading with the rest of the world. With so much untapped natural resources africa has nothing to lose but its dependency if its leaders are answerable to their people.
1. meekahaefele masooa says
China’s economic rise must be supported and the oriental ascendency on the global markets is not hostile to African interests.
Jahrateng Skabelli: Let us not get too excited. China is a capitalist nation with a communist (centralized government) garb. The Dragon will do anything to quell its thirst.
Evidence is aplenty. Chinese artillery is used to butcher Afrikans in Sudan. To win oil concessions.
However for psychological purposes, it’s useful for I and I to see the Anglo-Saxon, Judeo-Christian club invincibility crumble.
The upshot is nobody is going to save I and I. Not the Chinese. Not the Indians. Not the Brazilians (the Portuguese/Spanish leaders). Not the Russians.Period.
2. meekahaefele masooa says
One only needs to look at history to support this theory that it was the West and Arabs that colonized Africa in the past and not China nor India.
Jahrateng Skabelli
This is irrelevant. The Chinese are in this game to lead. By any means. This is the brutal truth and we ignore it at our peril. You imagine some countries in Afrika are already dishing out land to the Chinese for them to grow food!
They call it leasing; these low-class Afrikan leaders agreeing to such unbelievably stupid deals.
Some things have not changed. Yet.
3. meekahaefele masooa says
There is further proof that original African orthodox religion is temperamentally not diagonally opposed to native oriental faiths, Hinduism and Buddhism and as such the basis for cultural and economic cooperation between Africa and the eastern tigers can be firm and beneficial for all concerned. The global rise of china economy can benefit humanity greatly by shuttering the western financial monopoly thereby democratizing the world economic systems for the benefit of the greatest number of people.
Jahrateng Skabelli
Indeed it is true that Eastern Spirituality is ESSENTIALLY LOCALIZED AFRIKAN SPIRITUALITY.
The Yin Yan Principle of the opposites in a seamless tension in the whole universe is pure Afrikan Knowledge when we ran things. Then we spread it.
Only western culture missed this beat and there are theories on this like inadequate melanin etc.
Perhaps this common bond can be used by I and I to deal with China/India in their rise, to temper their acquired capitalist inclinations.
However this will only happen if I and I remain alert, studious and with integrity and SERIOUS.
There is no mercy in capitalism.
China & India, As, Buddhist/Hindu/Taoist as are, remain capitalists. Just like America, Ingand & Germany.
Let us quit deluding I and I.
4.meekahaefele masooa says
Africa’s answers amongst others is to raise stakes in political accountability, economic performance and robust trading with the rest of the world. With so much untapped natural resources africa has nothing to lose but its dependency if its leaders are answerable to their people.
Jahrateng Skabelli
Agreed! I can hardly wait for the moment when the graduating thieves & murderers who mislead Afrika are received for what they are by I and I.
No more obsequious respect for such lords of poverty in slavish cahoots with Afrika’s enemies & plunderors.
ONLY BLACK GOD.
Till then, they will continue to play “magnanimous” to supporters with our wealth and kill and burn with impunity. Using arms sold by the countries that make up the UN Nations Security Council. Of which China is permanent member.
The earth is full of irony & hypocrisy. Know this.