Saturday, July 24, 2010

Broke -- And Soon To Be Broken

clipped from

America's biggest creditor - China - has called our bluff.

the Financial Times notes,
the head of China's biggest credit rating agency has said America is insolvent and that U.S. credit
ratings are a joke:

The head of China’s largest
credit rating agency has slammed his western counterparts for causing
the global financial crisis and said that as the world’s largest
creditor nation China should have a bigger say in how governments and
their debt are rated.

Indeed, Guan is even dissing America's
military prowess:

“Actually, the huge military
expenditure of the US is not created by themselves but comes from
borrowed money, which is not sustainable.”
The fact that America spends
more than the rest of the world combined on our military means that we
can keep an artificially high credit rating. But ironically, all the
money we're spending on our military means that we become less and less
credit-worthy ... and that we'll no longer be able to fund our military.