The not so funny comedy of rating agencies and US debt

Dagong Global Credit Rating Co. — the Chinese rating agency downgraded the US from AA to A+

The serious defects in the United States economic development and management model will lead to the long-term recession of its national economy, fundamentally lowering the national solvency. The new round of quantitative easing monetary policy adopted by the Federal Reserve has brought about an obvious trend of depreciation of the U.S. dollar, and the continuation and deepening of credit crisis in the U.S. Such a move entirely encroaches on the interests of the creditors, indicating the decline of the U.S. government’s intention of debt repayment. Analysis shows that the crisis confronting the U.S. cannot be ultimately resolved through currency depreciation. On the contrary, it is likely that an overall crisis might be triggered by the U.S. government’s policy to continuously depreciate the U.S. dollar against the will of creditors.

Ouch. This certainly is a slap at US financial debt management. Where the Fed is not buying Treasuries, (the long-end of the yield curve) there has seen a clear change in trend from the summer with long bond yields up over 40 bps in the last month.

So where are the US rating agencies which have the US at triple-A on this issue?