China's Credit Rating Downgrade

[errolanderson]

http://business.financialpost.com/news/economy/moodys-just-downgraded-chinas-credit-rating-for-the-first-time-in-nearly-30-years

Explosive debt, bond market concerns and slowing economy have Moody's downgrading China credit rating lower than that of Taiwan. This is the first downgrade since 1989.

Potential impact on Cdn export pace to China . . . .

[perfecho]

These exploding economies...China, Alberta Oil and Gas, are never sustainable.....but when the stuff hits the fan, everyone looks for someone to blame....and its just "Newton's Third Law Of Motion".....What goes up.....

[errolanderson]

This credit downgrade will impact Brazil, Australia and Canada's economy directly. Canola and the cattle board appear feeling the impact today.

Cdn dollar up sharply on hawkish Bank of Canada comments this morning despite key lending rate holding steady at 0.5% for the last decade. Our Cdn economy heading for deeper struggles (IMO) heading into 2018.

[ajl]

The only question here is why did this take so long? China's economy is as phony as a $3 bill which has been known for some time. All those commie operatives borrowed money and invested in all sorts of stuff that was useless like ghost cities. Anyone think that would end badly? What is the value of farm real estate after China goes bankrupt?

[biglentil]

No need for conventional war these days a simple credit downgrade is much less messy.

[errolanderson]

The only question here is why did this take so long? China's economy is as phony as a $3 bill which has been known for some time. All those commie operatives borrowed money and invested in all sorts of stuff that was useless like ghost cities. Anyone think that would end badly? What is the value of farm real estate after China goes bankrupt?

Traders now suggest a heightened risk of a massive Chinese banking crisis within the next three (3) years. China's government bailout just adding to an incredible debt load. Not good for commodity-based economies . . . .