The head of China’s largest credit rating agency has slammed his western counterparts for causing the global financial crisis. “The western rating agencies are politicised and highly ideological and they do not adhere to objective standards,” Guan Jianzhong, chairman of Dagong Global Credit Rating, told the Financial Times in an interview. “China is the biggest creditor nation in the world and with the rise and national rejuvenation of China we should have our say in how the credit risks of states are judged.”

He specifically criticised the practice of “rating shopping” by companies who offer their business to the agency that provides the most favourable rating.

In the aftermath of the financial crisis “rating shopping” has been one of the key complaints from western regulators , who have heavily criticised the big three agencies for handing top ratings to mortgage-linked securities that turned toxic when the US housing market collapsed in 2007.

“The financial crisis was caused because rating agencies didn’t properly disclose risk and this brought the entire US financial system to the verge of collapse, causing huge damage to the US and its strategic interests,” Mr Guan said.

Recently, the rating agencies have been criticised for being too slow to downgrade some of the heavily indebted peripheral eurozone economies, most notably Spain, which still holds triple A ratings from Moody’s.

There is also a view among many investors that the agencies would shy away from withdrawing triple A ratings to countries such as the US and UK because of the political pressure that would bear down on them in the event of such actions.

“The US is insolvent and faces bankruptcy as a pure debtor nation but the rating agencies still give it high rankings ,” Mr Guan said. “Actually, the huge military expenditure of the US is not created by themselves but comes from borrowed money, which is not sustainable.”

China is not the only country that resents the devastating frauds that the US has perpetrated on not only its own people but the rest of the world through its Wall Street banks and ratings agencies.

On June 18, the symbol of the German company Deutsche Telekom, DT, made its last run across the ticker at the New York Stock Exchange. Europe’s largest telecom company left the world’s biggest and most recognizable exchange after nearly 14 years of trading.

The company is currently in the process of delisting from all foreign exchanges and will soon only be traded on its home stock market in Frankfurt.

Deutsche Telekom is just the latest German blue chip to say goodbye to the American capital market. In an emblematic departure, Daimler, the first German firm to be listed in New York in 1993, officially quit trading on the NYSE on June 4, saying that it no longer needed a presence in New York to attract international investors. And Munich-based insurance and financial services giant Allianz abandoned the NYSE last fall.

The recent retreat of German firms from the American capital market has been attributed to tighter regulations introduced by the United States government in the wake of the recent uncovering of massive securities fraud by the larger Wall Street banks. The recent banking reform bill signed by U.S. president Barack Obama will mean more foreign banks will flee the U.S. market due to added oversight and regulations that will no doubt add to the already high costs for foreign companies to be listed on the NYSE. Of the 11 firms on Germany’s DAX index of blue chip companies that were at one time listed on the NYSE, only four still remain: Deutsche Bank, Fresenius, SAP and Siemens.

When Telekom and Daimler announced their departures from the NYSE in April and May respectively, the main reason the companies said publicly was to reduce the complexity of financial reporting and administrative costs. The double-digit costs of SEC complaince, however, are paltry compared the hundreds of millions of dollars in liability — either through lawsuits or investigations and prosecutions — to which a US listing can expose foreign firms.

The US Justice Department and the SEC have been more assertive in investigating publicly traded companies following a wave of investment fraud schemes like the one by former Nasdaq chief Bernard Madoff, who swindled prominent investors out of billions.

“That’s the real issue here,” says Miers, who worked for the SEC’s division of corporation finance from 1994 to 1997. “What the SEC fully doesn’t grasp to today is that dealing with the US regulation system is a nightmare,” he says. “It’s another reason to run to the exit door.” And running to the exit door has escalated in just the last few months as the Wall Street banking giant’s fraud schemes begin to be uncovered and Wall Street comes under investigation.

As of July 23, 2010 the U.S. national debt is a staggering $13.2 trillion (debt per taxpayer is $119,517), U.S. Total Debt is $54 trillion, Gross Debt to GDP ratio is 91.5%, 25 million Americans are unemployed, 41 million Americans now rely on food stamps, 1.4 million bankruptcies in the U.S. this year alone, and almost 1 million foreclosures so far this year. There is simply no way for the United States to pay its debt under current levels of taxation and promised benefits. The U.S. is insolvent and faces bankruptcy as a pure debtor nation.