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By blocking the Chinese rating agency, the Dagong Global Credit Rating Co. Ltd., from entering the international credit rating market, the United States aims to thwart China's efforts to have a say in the international capital market.

November 16, 2010 (Hamsayeh.Net) - China is becoming increasingly upset with US measures designed to fend off competitors by lowering its currency and issuing unsupported dollars.  

After last week's QE2 announcement by the FED, one of China's most prestigious credit rating agencies immediately lowered US rating to a single A because of uncertainties over US economic outlook. This week, US policy makers have decide to hit back by preventing foreign credit rating agencies from setting up business in America as a measure to fence against anyone trying to foray into its own market, cites China's People's Daily online.

The same agency that critically lowered US rating was prevented from doing business in the United States. At the same time US companies are rushing to buy all the credit agencies they can find using the same money printed out of thin air recently. Washington, is trying to strengthen positions of its own credit rating agencies such as Moody's,  Standard Poor and Fitch  to maintain a grip on financial markets.

According to leading financial analysts, by blocking the Chinese rating agency, the Dagong Global Credit Rating Co. Ltd., from entering the international credit rating market, the United States aims to thwart China's efforts to have a say in the international capital market. 

'The United States rejected Dagong's application out of fears that its dominance in credit rating could be challenged,' said Mei Xinyu, an expert with the Research Institute of International Trade and Cooperation of China's Ministry of Commerce.

Oil producing nations are also worried by US illegal measures to pay for its vital crude imports. As a fast-dwindling industrial nation the United States nevertheless continues to depend heavily on imported fossil fuel to keep the virtual image of its economy running for a while longer. In fact the only factor supporting US' prolific money printing habit is the still abundant chip oil that's available on the market nowadays. 

A full-fledged currency-trade war is fast approaching among leading industrial economies of the East and West.