via zerohedge – In its latest reminder that China is a (for now) happy holder of some $1.2 trillion in US Treasurys, Chinese credit rating agency Dagong downgraded US sovereign ratings from A- to BBB+ overnight, citing “deficiencies in US political ecology” and tax cuts that “directly reduce the federal government’s sources of debt repayment” weakening the base of the government’s debt repayment.
Oh, and just to make sure the message is heard loud and clear, the ratings, which are now level with those of Peru, Colombia and Turkmenistan on the Beijing-based agency’s scale of creditworthiness, have also been put on a negative outlook.
In a statement on Tuesday, Dagong warned that the United States’ increasing reliance on debt to drive development would erode its solvency. Quoted by Reuters, Dagong made specific reference to President Donald Trump’s tax package, which is estimated to add $1.4 trillion over a decade to the $20 trillion national debt burden.
“Deficiencies in the current U.S. political ecology make it difficult for the efficient administration of the federal government, so the national economic development derails from the right track,” Dagong said adding that “Massive tax cuts directly reduce the federal government’s sources of debt repayment, therefore further weaken the base of government’s debt repayment.”
Continue reading China Downgrades US Credit Rating From A- To BBB+, Warns US Insolvency Would “Detonate Next Crisis”
The State of New York has converted Digital Rights –using Bitcoin, “virtual”-digital currencies and Block-chain technology– into a privilege with a License for a Fee. The New York Department of Financial Services called it a BitLicense and is “required” for all businesses transacting Virtual Currencies like a bank.
The goal is to “regulate bitcoin and virtual currencies.” However, there is nothing “legal” about virtual currencies. Digital Currencies are entirely NON-LEGAL and only LAWFUL. The NY-DFS has been sneaky about it too:
A business must obtain a BitLicense if it engages in virtual currency business activity involving New York State or persons that reside, are located, have a place of business, or are conducting business in New York.
Such regulation “shadow bans” all “STATE OF NEW YORK ARTIFICIAL PERSONS/CITIZENS” from various digital currency networks. See The Real Cost of Applying New York BitLicenses.
Frost estimated the [BitLicense] application cost Bitstamp roughly $100,000, including time allocation, legal and compliance fees.
Continue reading State of New York Converts Digital Rights to Use Bitcoin into Privilege with a License for a Fee in Violation of Legal Precedence
With the Fed contemplating whether to hike again next month and start “normalizing ” its balance sheet before the end of 2017, the two other major central banks are facing far bigger problems.
Continue reading Japan, Europe QE Programs Must Stop: ECB And BOJ Running out of Bonds to Buy for QE