Somebody page Chuck Barris. Washington is putting on a brand new version of Dagong Show.
Despite Congress' last ditch deal to end the government shutdown and raise the debt ceiling, the Chinese rating agency Dagong downgraded America's local and foreign currency credit ratings Wednesday to A- from A. Dagong, which is not recognized by American regulators, maintained its negative outlook on the U.S., saying the agreement does not change the "fundamental situation" that the country's debt growth rate continues to outpace fiscal income while GDP remains stagnant.
"For a long time the U.S. government maintains its solvency by repaying its old debts through raising new debts, which constantly aggravates the vulnerability of the federal government's solvency," wrote Dagong. "Hence the government is still approaching the verge of default crisis, a situation that cannot be substantially alleviated in the foreseeable future."Look. Dagong does not have the sway of S&P (MHFI), Moody's (MCO) or Fitch. We know Wall Street will scoff at whatever Dagong says, even though our own ratings agencies failed to stop the mortgage meltdown that kicked off this debt binge anyway. That said, it's hard to find fault with their analysis of America's dire fiscal situation and our political resolve to tackle it -- or lack thereof -- considering the screwball antics of Ted Cruz, John Boehner, Harry Reid and company in the past few weeks. Seriously, if you ask us, we should gong those guys off Capitol Hill and send in Jamie Farr, the Unknown Comic and Gene Gene the Dancing Machine to do their jobs. Judging from this recent insanity, we can only imagine they would do just as well. -- Written by Gregg Greenberg in New York Follow @5gsonthestreet