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How do you think they should do that, and why are you responding so defensively? It seems to me that the only way for them to build up credibility is to never r

How do you think they should do that, and why are you responding so defensively? It seems to me that the only way for them to build up credibility is to never repeat the mistake they made last decade - but you seem to think that they should respond to their mistake by ... never downgrading a credit rating despite seeing issues? That doesn't make sense.

dis-sys 9y ago
China has over $20 trillion saved. S&P choose to downgrade its credit rating. https://www.bloomberg.com/news/articles/2015-06-25/with-21-trillion-china-s-savers-are-set-to-change-the-world https://www.bloomberg.com/news/articles/2015-06-25/with-21-t... US has a real debt problem, yet S&P choose to give it a triple-A rating. This is not credit rating, it is an IQ test.
- JumpCrisscross 9y ago
  > China has over $20 trillion saved From where did you get $20 trillion? The data I see show $3.5 trillion for the United States versus $5.4 trillion for China [1]. U.S. depository institutions hold over $9 trillion in savings [2]; this doesn't count savings held in stocks and bonds, the majority of Americans' savings. In any case, private savings aren't really relevant to a country's credit rating. Ability and willingness to pay are. If the U.S. Treasury defaults, one can sue. If China defaults...you're just screwed. [1] https://data.worldbank.org/indicator/NY.GNS.ICTR.CD?locations=US-CN https://data.worldbank.org/indicator/NY.GNS.ICTR.CD?location... [2] https://fred.stlouisfed.org/series/WSAVNS https://fred.stlouisfed.org/series/WSAVNS
  - dis-sys 9y ago
    > From where did you get $20 trillion? The data I see show $3.5 trillion for the United States versus $5.4 trillion for China https://www.bloomberg.com/news/articles/2015-06-25/with-21-trillion-china-s-savers-are-set-to-change-the-world https://www.bloomberg.com/news/articles/2015-06-25/with-21-t... http://www.smh.com.au/business/china/with-28-trillion-in-savings-chinese-are-set-to-change-the-world-20150625-ghy4x1.html http://www.smh.com.au/business/china/with-28-trillion-in-sav... > If the U.S. Treasury defaults, one can sue. If China defaults...you're just screwed. which government got recently shutdown for its debt problems?
    - JumpCrisscross 9y ago
      The Sydney Morning Herald article you cite [1] measures “deposits”. The comparable figure in the United States is $12 trillion [2]. The comparison is misleading, however, since few U.S. institutions, financial or non-financial, “save” in deposit accounts. (This is true in a China, too.) All this comes down to the murky definition of “savings,” which are in the end largely irrelevant to national credit concerns since “credit” is trying to quality their probability of seizure (through default, expropriation or other means). [1] http://www.smh.com.au/business/china/with-28-trillion-in-savings-chinese-are-set-to-change-the-world-20150625-ghy4x1.html http://www.smh.com.au/business/china/with-28-trillion-in-sav... [2] https://fred.stlouisfed.org/series/DPSACBW027SBOG https://fred.stlouisfed.org/series/DPSACBW027SBOG
- RamshackleJ 9y ago
  I don't mean to nitpick but I'm pretty sure S&P gives the US a AA+ rating....
- tinfins 9y ago
  You're wrong. Look at the comments below - you're reacting emotionally and not doing your research properly. I apologize if I'm mistaken, but I'm guessing you're Chinese. I've seen a lot of Chinese people get defensive over little things like this and respond with knee-jerk attacks, but it's really unnecessary. As your country gains influence worldwide you'll only see more articles like this - best get used to it and try to respond in a more useful way.
deleted 9y ago
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dis-sys 9y ago

China has over $20 trillion saved. S&P choose to downgrade its credit rating. https://www.bloomberg.com/news/articles/2015-06-25/with-21-trillion-china-s-savers-are-set-to-change-the-world https://www.bloomberg.com/news/articles/2015-06-25/with-21-t... US has a real debt problem, yet S&P choose to give it a triple-A rating. This is not credit rating, it is an IQ test.

JumpCrisscross 9y ago
> China has over $20 trillion saved From where did you get $20 trillion? The data I see show $3.5 trillion for the United States versus $5.4 trillion for China [1]. U.S. depository institutions hold over $9 trillion in savings [2]; this doesn't count savings held in stocks and bonds, the majority of Americans' savings. In any case, private savings aren't really relevant to a country's credit rating. Ability and willingness to pay are. If the U.S. Treasury defaults, one can sue. If China defaults...you're just screwed. [1] https://data.worldbank.org/indicator/NY.GNS.ICTR.CD?locations=US-CN https://data.worldbank.org/indicator/NY.GNS.ICTR.CD?location... [2] https://fred.stlouisfed.org/series/WSAVNS https://fred.stlouisfed.org/series/WSAVNS
- dis-sys 9y ago
  > From where did you get $20 trillion? The data I see show $3.5 trillion for the United States versus $5.4 trillion for China https://www.bloomberg.com/news/articles/2015-06-25/with-21-trillion-china-s-savers-are-set-to-change-the-world https://www.bloomberg.com/news/articles/2015-06-25/with-21-t... http://www.smh.com.au/business/china/with-28-trillion-in-savings-chinese-are-set-to-change-the-world-20150625-ghy4x1.html http://www.smh.com.au/business/china/with-28-trillion-in-sav... > If the U.S. Treasury defaults, one can sue. If China defaults...you're just screwed. which government got recently shutdown for its debt problems?
  - JumpCrisscross 9y ago
    The Sydney Morning Herald article you cite [1] measures “deposits”. The comparable figure in the United States is $12 trillion [2]. The comparison is misleading, however, since few U.S. institutions, financial or non-financial, “save” in deposit accounts. (This is true in a China, too.) All this comes down to the murky definition of “savings,” which are in the end largely irrelevant to national credit concerns since “credit” is trying to quality their probability of seizure (through default, expropriation or other means). [1] http://www.smh.com.au/business/china/with-28-trillion-in-savings-chinese-are-set-to-change-the-world-20150625-ghy4x1.html http://www.smh.com.au/business/china/with-28-trillion-in-sav... [2] https://fred.stlouisfed.org/series/DPSACBW027SBOG https://fred.stlouisfed.org/series/DPSACBW027SBOG
RamshackleJ 9y ago
I don't mean to nitpick but I'm pretty sure S&P gives the US a AA+ rating....
tinfins 9y ago
You're wrong. Look at the comments below - you're reacting emotionally and not doing your research properly. I apologize if I'm mistaken, but I'm guessing you're Chinese. I've seen a lot of Chinese people get defensive over little things like this and respond with knee-jerk attacks, but it's really unnecessary. As your country gains influence worldwide you'll only see more articles like this - best get used to it and try to respond in a more useful way.

deleted 9y ago

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