Worst Advice I’ve Seen in Years
by Simon Black: Become
a Multi-Millionaire… as a Tax Snitch
When I woke
up this morning and scanned through my usual digest boots
on the ground reports from overseas contacts, market summaries from
Asian and European bankers, commentary from friends still in the
intelligence community a couple of things caught my eye that
I want to tell you about.
Credit Rating Co is Chinas leading credit rating agency. Credit
rating agencies are the firms who are responsible, among other things,
for scoring the credit risk of a particular asset or sovereign nation.
When they rate
a security as AAA. premium safety, investors pile in.
Theyre an integral part of the financial system.
remember that the worlds leading agencies Fitch, Moodys,
and S&P, were all complicit in slapping AAA premium ratings
on so many toxic mortgage-backed securities
sound ratings for far too long on bankrupt nations like Greece and
industry lacks credibility at this point, and Chinas Dagong
agency aims to do something about that.
I read Dagong president Guan Jianzhongs remarks at a recent
conference of Asian rating agency CEOs held in Kuala Lumpur, Malaysia
(one of my favorite cities).
In his speech,
Guan called for the establishment of a global rating agency that
follows clearly outlined international standards, effectively putting
an end to the cowardly analysis that dominates the industry now
and replacing it with a healthy dose of reality.
money where its mouth is, Dagong has a long-standing, negative outlook
on US debt that doesnt pull any punches. From its November
essence the depreciation of the U.S. dollar adopted by the U.S.
government indicates that its solvency is on the brink of collapse,
therefore it wants to cut its debt through the act of devaluation
with the national will; such a move has severely harmed the interests
S&P stunned financial markets this morning by revising its US
outlook to negative, citing politicians inability
to address medium-term and long-term challenges.
the rest of the article
April 19, 2011
© 2011 Sovereign Man