“The U.S. economic fundamentals are not strong, plus there is expanding fiscal deficit and declining financial revenue. We are closely tracking the performance of U.S. government bonds and considering a further adjustment based on current conditions.”-Guan Jianzhong, Dagong Global Credit Rating Company

It wasn’t just S & P that reduced the credit rating of the Untied States, Dagong Global Credit Rating company also downgraded the U.S.  That’s important, because it’s a Chinese company, and the Chinese hold most of the U.S. sovereign debt.

Chinese Foreign Ministry spokesman Hong Lei, along with several Chinese bank officials, urged the United States to adopt “responsible policies and measures” to protect the interests of investors (mainly Chinese).  The problem is that if those investors think they’re going to lose money then they’re going to start off loading their U.S. bonds in a big way (they’ve already been selling them off, slowly, for the past three months).