Global Stock Market Is Strictly Against Black Monday &Nbsp; The US Rating Is Down Or Just Begun.

Downgrading the US sovereign credit rating is just the beginning.

The three follow-up questions may be more noteworthy: first, do other rating agencies follow up; two, the worst of the world economy; and three, the monetary system.

Despite its "reckless" underground credit rating, S & P has chosen the weekend announcement.

S & P has given finance ministers two days to build enough safe financial dams to withstand the advent of "black Monday".

In August 7th, the finance ministers of the seven industrial developed countries (G7) held an emergency telephone conference to discuss the decision to deal with "black Monday".

On the same day, according to the deputy finance minister of Korea, the financial representatives of the group of twenty (G20) also held a conference call on the European debt crisis and the US rating downgrade.

Xinhua also commented that China has the right to urge.

Black Monday?

Global stock markets have gone through "black week" and evaporated at $3 trillion.

In order to prevent "black Monday" today, G7 leaders urgently discussed the first decline of the US 3A rating and the expansion of the European debt crisis.

French finance minister Baroin said the finance ministers of France, Britain, Canada, Germany, Italy, Japan and the United States are urgently dealing with the follow-up effect that the rating may cause.

The finance ministers of seven countries worry that the rating of the world's largest economies has been lowered, and that the US economy has increased the risk of the two dip. The global financial market is sure to usher in a turbulent situation this week. It will also exacerbate the European debt crisis. At present, Europe is busy supervising the banks to prepare enough funds to defend against the crisis of liquidity shortage.

Sun Lijian, vice president of the school of economics at Fudan University, said that S & P seized the opportunity to make a good show. The market should not be overly stressed because the rating agencies were eager to wash their own "dereliction of duty" stains during the 2008 financial crisis.

S & P has confirmed that the two parties in the United States have released bad news during the negotiations, so now they are "very responsible".

In the long run, the long-term debt rating of the United States still has a downward risk. Moodie and Fitch will make appropriate warnings according to their own interests, but by that time, the market has completely digested the "uncertainty" risk and is expected to have little influence.

But he believes that the global financial market is likely to usher in a "black Monday", and the unemployment rate in the United States is still up to 9.1%. If economic data can't save itself, it can only rely on confidence to save itself.

The external market situation in the United States is also very bad. In the eurozone debt crisis, Italy and Spain are having problems again, and the pressure on the appreciation of currencies is increasing, and trade protectionism will become increasingly fierce.

Good comment on S & P?

S & P pulled the gold medal of the United States down the altar and became a target in just a few days.

S & P sovereign ratings Director Bill Gates says it is our duty to make a decision to lower the US rating.

Changes in the US political situation and a weak fiscal consolidation plan are a major factor in the downgrade.

In August 7th, "stock god" Buffett said that standard & Poor's downgrading the US AAA class sovereign credit rating had no meaning.

Buffett said: "in Omaha, the US Treasury bonds are still 3A grade.

In fact, if there is a 4A level, I will give it to the US debt. "

Britain, France, Russia and Japan all expressed confidence in investing in US debt.

But Zhang Guoqing, an Associate Research Fellow of the US Research Institute of the Chinese Academy of Social Sciences, said in an interview with the international finance daily that the S & P's reduction of the US rating is expected. It is expected that the rating will still have downside risks.

Unlike the 2008 financial crisis, the S & P was an evaluation of the ability of the US government to govern, and questioned the White House's ability to save the economy. But in the short term, Moodie and Fitch, two other rating agencies, will not follow suit.

Zhang Guoqing believes that the action of S & P will lead to three points.

First, once the US rating is lowered, it will be difficult to recover in the short term, as Canada and other countries have shown that restoring high credibility will take at least 10 years.

Second, it has different effects on the US and the world economy.

The impact on the United States is mainly psychological. As the pressure of government borrowing increases, investment and consumer confidence will have a negative impact. For other economies in the world, instability will increase. For example, inflation expectations in emerging economies will rise, commodities will be "scrambled" and the cost pressures of manufacturing industries will increase.

Third, the Russian Prime Minister Putin put forward the theory of diversification of the reserve currency system to usher in a good time for development.

RMB timing?

Paul Krugman, a Nobel Laureate in economics, has said that if the US rating is down, China will lose about 300 billion dollars in foreign exchange assets.

Many experts said that the S & P downgrade has given China a wake-up call for investment strategy and should seize the opportunity to strengthen the renminbi.

In contrast, the renminbi is in a strategic position.

Sun Lijian pointed out that China has great pressure and arbitrage speculative forces will then sneak in.

Predictably, the strength of the United States is weakening. The debt problem of the United States is different from that of the euro zone countries. Greece and other countries borrow money for welfare, while the United States is borrowing to expand its strength and enhance its world hegemony.

The United States borrowed money to develop its soft power of education and research, and then continued to kidnap the global economy.

The rating agencies were manipulated by the US government. The rating was embarrassed not by the US, but by a large number of us long-term bonds.

S & P's remarks directly led to China's investment failure, but its impact on the US was very limited. Therefore, the Chinese government should continue to exert enough pressure on the US government. If the United States does not cut down huge military spending and expenditure on the welfare system in a timely manner, the demotion may happen again at any time, so the Chinese policy-makers should continue to exert pressure.