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Flat White

The US debt showdown

Repeated brinkmanship over a US default weaken the global financial system

18 May 2023

4:00 AM

18 May 2023

4:00 AM

In November 2010, China’s Dagong Global Credit Rating Company did the unthinkable. The rating agency founded in Beijing in 1994 removed its highest-possible (AA) rating on US government debt, citing ‘serious defects’ in the US economy.

Those aware of Dagong’s decision shrugged off the rationale. They knew the agency was furious about a US decision to refuse it a licence to operate in the US.

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