A Chinese rating agency has warned that the European debt crisis could spiral into a currency crisis this year as foreign confidence in the euro collapses.
Dagong Global Credit Rating, which has made headlines before in twice downgrading the US sovereign rating, said in its annual outlook that the US would remain a safe haven this year while Europe would court disaster.
Dagong is a private agency that does not speak for the Chinese government. Beijing has consistently voiced public support for the euro and expressed confidence in Europe’s ability to fix its debt woes.
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