The Great Wall Of Downgrade

China is now coming out swinging against Helicopter Ben's QE2 as the country's bankers have laid another debt rating downgrade from AA to A+ on the US.

Dagong has downgraded the local and foreign currency long term sovereign credit rating of the United States of America (hereinafter referred to as “United States” ) from “AA” to “A+“, which reflects its deteriorating debt repayment capability and drastic decline of the government’s intention of debt repayment.

The serious defects in the United States economic development and management model will lead to the long-term recession of its national economy, fundamentally lowering the national solvency. The new round of quantitative easing monetary policy adopted by the Federal Reserve has brought about an obvious trend of depreciation of the U.S. dollar, and the continuation and deepening of credit crisis in the U.S. Such a move entirely encroaches on the interests of the creditors, indicating the decline of the U.S. government’s intention of debt repayment. Analysis shows that the crisis confronting the U.S. cannot be ultimately resolved through currency depreciation. On the contrary, it is likely that an overall crisis might be triggered by the U.S. government’s policy to continuously depreciate the U.S. dollar against the will of creditors.

In other words, China's not too happy with this move and are more than willing to fight back by going after us on the international stage.  Things could get pretty insteresting, "Chinese interesting times" interesting, as I like to say.  It's not a full-on currency war yet, but China has taken the field now.

We'll see where the world's other import/export countries line up on this fight.  Straight-up protectionist silliness cannot be far behind.