This article appeared online at TheNewAmerican.com on Thursday, September 21, 2017:
Thanks to “diminished financial stability,” S&P Global Ratings downgraded China’s credit rating for the first time since 1999, adding, “China’s prolonged period of strong credit [debt] growth has increased its economic and financial risks. Although this credit [debt] growth had contributed to strong real gross domestic product growth and higher asset prices, we believe it has also diminished financial stability.”
The downgrade by S&P is the second one this year for China — Moody’s Investors Service dropped China’s rating in May — and was preceded by a warning from the International Monetary Fund (IMF) in August that China’s growing debt binge was putting its economy into jeopardy.
The response by Chinese officials was as predictable as it was silly.