While Europe is at the brink of a recession, the US barely trying to avoid one, and China is still chalking up 6.9% of growth as the second biggest economy in the world, its credit rating is negative as far as Moodys is concerned. What about the more than US$3 trillion of reserves against the USA as a debtor nation with more than US$15 trillion debt, if I could remember the numbers correctly? And the US is printing money recklessly to shore up its economy and its debt and commanding a better credit rating than China, the banker of the USA?
What a joke! And what were the reasons for this downgrading? China’s surging debt burden? How much is this compares to the US govt’s debt burden? China’s inability to reform? Is that a reasonable reason for downgrading the credit rating? Oh, the Chinese economy is the weakest in a quarter of a century? True, but that is comparing to an economy that was hot with double digit growth to single digit growth in the 7% that many countries will be salivating. Why not compare the Chinese economy with Europe and the USA? One is still having very good positive growth and the other two are about to kaput? What kind of comparison and analysis is that?
And what reform is Moodys talking about? Deng Xiaoping had started the reform ball rolling in the late 1970s. And China today is a totally new China. Not good enough because China is not subordinated to the Americans and not allowing the Americans to dictate how and what China should or should not do, allowing the Americans to drive the Chinese stock markets anywhere it wants it to go? Let me quote what Jean Pierre Lehmann wrote in his article, ‘The Trump effect on China’ in the ST on 3 Mar, ‘President Barack Obama’s statement, ”We can’t let countries like China write the rules of the global economy, we should write those rules”, is especially offensive. What rules were we (the West and Japan) playing to when we were carving up and exploiting China? Besides would it not be more proper in the 21st century to be writing the rules together?’
Has Moodys joined the circus industry and hiring clowns as analysts? China is going around the world buying up big corporations costing billions. China is the top trading partners of more than 30 nations. The Chinese economy is comprehensive, from infrastructure to manufacturing, banking, commerce, high tech, low tech, agriculture, farming etc etc. The Chinese economy is not going down like the US and Europe.