Much of the routine trade and investment between China and America is entirely appropriate and in America’s interest. But inserting the Chinese Communist Party into America’s pay-to-play system and its economic development strategy isn’t just crossing a line. It’s a leap into an abyss of stupidity.
Moody’s gives credit upgrade, Moody’s gets business. That’s how municipal finance credit ratings work. Nine years ago when Moody’s ratings on Chicago were harsh, Rahm blacklisted them.
The credit rating agencies have a core conflict of interest, as you indicate. None were on the ball before the GFC in 2008. They help shape a financial illusion. When things go bad that they should foresee, we get the “hoocoodanode.” Same with Big 4 auditors. They are all giving clean opinions on Eurozone banks. A joke.