China Rating Agency Says U.S. Is Setting the Stage for “A World Credit War”

The U. S. is effectively printing cheap dollars as it implements an ultra-loose policy to spur its flagging economy, setting the stage for “a world credit war,” a Chinese rating agency said on Friday. The Beijing-based Dagong Global Credit Rating, a relative newcomer in the sovereign debt rating realm, said in its 2011 Sovereign Credit Risk Outlook that QE by the U.S. Federal Reserve has “eroded the legitimacy of the global monetary system that takes the dollar as the key reserve currency.” – Reuters