Dagong Credit says that the developed world solvency in an "unstable state"

Six truths from Dagong Credit rating agency.  Dagong credit agency is based in China and it seems that they do not have a native English speaker to proofread their stuff.  We get what they say, but laugh at how they say it. 

Their sovereign credit risk for 2011, comes out with more of the same that we have seen of the other credit rating agencies.  They are not completely independent as I sense too much the Beijing government line in some of their work, but they are guaranteed not to walk in lockstep with the other three. 

Point number 2 they state that the developed world is insolvent.  Although their English leaves me scratching my head, that is a point we have made here many times.  Consider the $104 TT cost of unfunded liabilities from the abominable triplets of Medicare, Medicaid and Social Security.  That is on top of our $14 TT debt. 

They take to task Europe and the United States for their levels of debt and have issued their six truths report which give their expectations for the financial crisis and global economy.  Via Dagong:
  1. The basic layout of worldwide system of sovereign credit and debt is mainly comprised of the debt system of the developed countries and the credit system of the emerging countries
  2. In 2011 the developed debtor countries, constrained by the macroeconomic environment of the debt system, lack of the basic conditions to improve their solvency, their actual solvency will be in an unstable state
  3. As the inherent factors affecting the sovereign debt crisis in the eurozone countries have not been fundamentally changed, sovereign debt crisis in the eurozone countries will be further intensified in 2011, with possible downgrade of sovereign credit ratings on Portugal and Spain
  4. The United States, as the biggest country involved in sovereign debt crisis around the world, will continue its quantitative easing policy when the country is in danger, and the world credit war will be escalated due to the overflow of US dollars
  5. The credit risks of the developed debtor countries become the major destructive force for the world economic development
  6. The emerging creditor nations will maintain high economic growth, they are the backbone to promote the healthy development of international credit relations amid the unstable global credit system


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