In March, Russia launched its ratings firm. In building a separate world system, this is one piece to it. Current institutions get delegitimized and shadow institutions have to be built. This does not just describe how rightists in America should operate but non-USG actors on the world stage. I have written on this specific piece before as a good development. The West is smearing its own financial institutions, so no help is needed there, but they are doing so because they feel there is no alternative. This is potentially changing.
The idea is being mocked by Americans, "no one cares" and that this will be "in the Kremlin's pocket". We all should assume so because the American ratings firms are in the USG's pocket. The ratings firms stopped downgrading the US Treasuries. The USG attacked Egan-Jones for daring to be honest about the state of American Treasuries. Ratings firms are parts of USG as they are parts of the financial system and that system has a firm grip on USG. Finance is weaponized therefore ratings firms are weapons, too.
it might be a small thing now and maybe in the quoted American's mind no one cares, but it might not always be the case. There was an unexpected recent downgrade of Poland by S&P. This was purely political, and Reuters openly writes of the coincidences.
"The downgrade reflects our view that Poland's system of institutional checks and balances has been eroded significantly," S&P primary credit analyst for Poland, Felix Winnekens, said in a statement, criticising legislative changes to the constitutional court and public broadcasting under the new government.
Earlier this week, the European Union began an unprecedented inquiry into whether Poland has breached the bloc's democratic standards by passing the new laws.
The EU is on the attack and now the S&P downgrades Poland, which will hurt its government bonds and currency. In a world with separate rating agencies that have a track record of fairness and good observations, could S&P pull of such ridiculous moves as a political weapon? Most likely no if the competition is firm. Definitely not, if nations become defectors of sorts with regards to ratings.
This is the problem of the current US financial system. No real competition and they can trade on the old reputation for fair adjudication of contracts. The American financial system is doing its best to wreck the reputation it built to become a competitor of London. It had to do so to become a financial center. Trust does matter. Unfortunately, our elite runs the game like a Mafia. They can do so now with no competition. It will not be so easy forever.