Dagong Global Credit Rating Co. is a credit rating agency in China and according to their President, Guan Jianzhong, the US has already been defaulting.

In our opinion, the United States has already been defaulting, Guan Jianzhong, President of Dagong, the only Chinese agency that gives sovereign ratings, was quoted by the Global Times.

Washington had already defaulted on its loans by allowing the dollar to weaken against other currencies - eroding the wealth of creditors including China, Guan said.

The US government will run out of room to spend on August 2 unless Congress bumps up the borrowing limit beyond US$14.2 trillion.

Moody's, Standard & Poor's, and Fitch have already issued warnings that the US credit rating could be at risk.

On May 24th, Dagong downgraded UK's sovereign credit rating to A+ from AA- with a negative outlook for its solvency.

Read: UK credit rating downgraded by Chinese rating agency

Read: China Calls for US Action on Debt Crisis, Risk of US Debt Default May Lead to Further US Dollar Decline

Read: Debt Ceiling: Moody's threatens to Slash the US credit rating, US Dollar Implications

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