RE: S&P Seen Surrendering to Tea Party
August 8, 2011 at 7:33 pm
(This post was last modified: August 8, 2011 at 8:00 pm by Anomalocaris.)
China's lower credit rating can be attributed to 3 things:
1. China under the current government has had a short hisotry as a participating player in the internation credit and finance world. Length of credit history helps build confidence in one's credit worthiness, and china's is short.
2. The current government has in the relatively recent iteration of itself, exhibited both the ability and willingness to make radical and capricious changes to the very concept of asset and credit ownership. Arbitrary appropriation of the properties of the creditors within living memory does not help one's credit rating.
3. Due to the odd detachment between the ideological and practical justification of the very communist and yet supremely capitalist government in china, there is much uncertainty about just how long this current form of government can maintain its own legitamacy. Just who will pay china's debt's should Chinese communist party loses its grip is not entirely clear. This also doesn't help China's credit rating.
1. China under the current government has had a short hisotry as a participating player in the internation credit and finance world. Length of credit history helps build confidence in one's credit worthiness, and china's is short.
2. The current government has in the relatively recent iteration of itself, exhibited both the ability and willingness to make radical and capricious changes to the very concept of asset and credit ownership. Arbitrary appropriation of the properties of the creditors within living memory does not help one's credit rating.
3. Due to the odd detachment between the ideological and practical justification of the very communist and yet supremely capitalist government in china, there is much uncertainty about just how long this current form of government can maintain its own legitamacy. Just who will pay china's debt's should Chinese communist party loses its grip is not entirely clear. This also doesn't help China's credit rating.
