Dagong Global Credit Rating Co., the Chinese rating company that was recently rejected in its bid to be an officially recognized bond rater in the U.S., just downgraded the entire U.S. The always objective Xinhua has the "scoop."

Needless to say, the markets don't find this credible. Bond yields haven't done anything. As the Journal's Joy Shaw reported, Dagong was little-known before it surprised the credit-rating world in July by publishing sovereign ratings for China that were higher than those for the U.S., the U.K.,...