It's not hard actually to imagine the biggest creditor of US foreign debt to downgrade the value of US rating. That's what happen with China's Dagong Global Credit Rating.
The Dagong Global Credit Rating Company, which lowered the United States to A+ last November after the U.S. Federal Reserve decided to continue loosening its monetary policy, announced a further downgrade to A, indicating heightened doubts over Washington's long-term ability to repay its debts.
With just a rating of A much lower than compared to big three of Western AGency which still retain US highest rating means that Chinese really doubt US economic for the future outlook and with how things going, maybe China will decrease their number of investment of Bond in US and shift to other AAA country.
But of course major implication of that move is still questioned since most Investor rely on Big Three (S&P, Fitch, Moody's)rating.
Eitherway, Obama's debt problem dealing is much critized by almost all people as lacking enough long term prospect as its only solve the problem for now. Not surprise market around the world welcome such news with negative consideration. Dow, Nasdaq,HSI,Nikkei, and almost all infleuntial stock Index plummet hearing the news.
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