S&P cuts U.S. outlook to negative

[KissMy]

S&P cuts U.S. outlook to negative

RATINGS-USA/S&P (URGENT)NEW YORK, April 18 (Reuters) - Standard & Poor's on Monday downgraded the outlook for the United States to negative, saying it believes there's a risk U.S. policymakers may not reach agreement on how to address the country's long-term fiscal pressures.

 

[Mad Scientist]

Dollar destruction will accelerate from here on in. Just ordered 1 ounce of Gold and 23 ounces of silver last Friday, glad I did!

I suggest everyone do the same unless they want to see their life savings greatly diminished.

I have also been stocking up on food (for the coming inflation) and ammunition for the last 6 months or so.

 

[KissMy]

Neither Jimmy Carter nor George Bush caused the USA to get downgraded. This proves that Obama is the worst president in my lifetime.

 

[uscitizen]

Must be those Tea Partiers in congress.
It never got downgraded before they were in there.

 

[KissMy]

Wrong uscitizen! China downgraded the USA when Democrats controlled everything well before the TEA party came to power. The TEA party is the only party trying to save the USA. The other 2 are trying to destroy America.

Chinese rating agency strips Western nations of AAA status

Dagong Global Credit Rating Co used its first foray into sovereign debt to paint a revolutionary picture of creditworthiness around the world, giving much greater weight to "wealth creating capacity" and foreign reserves than Fitch, Standard & Poor's, or Moody's.

The US falls to AA, while Britain and France slither down to AA-. Belgium, Spain, Italy are ranked at A- along with Malaysia. Meanwhile, China rises to AA+ with Germany, the Netherlands and Canada, reflecting its €2.4 trillion (£2 trillion) reserves and a blistering growth rate of 8pc to 10pc a year.

Dominique Strauss-Kahn, chief of the International Monetary Fund, agreed on Monday that the rising East is a transforming global force. "Asia's time has come," he said.

The IMF expects Asia to grow by 7.7pc in 2010, vastly outpacing the eurozone at 1pc and the US at 3.3pc. Emerging nations hold 75pc of the world's $8.4 trillion (£5.6 trillion) of reserves.

Dagong rates Norway, Denmark, Switzerland, and Singapore at AAA, along with the commodity twins Australia and New Zealand.

Chinese president Hu Jintao said in April that the world needs "an objective, fair, and reasonable standard" for rating sovereign debt. Dagong appears to have stepped into the role, saying its objective was to assess countries using methods that would "not be affected by ideology". "The reason for the global financial crisis and debt crisis in Europe is that the current international credit rating system does not correctly reveal the debtor's repayment ability,"

U.S. Stripped of AAA Credit Rating...By China

Despite repeated warnings going back several years from Moody's, S&P et al that the U.S. could lose its top credit rating with ongoing fiscal deficits and heavy debts, the platinum-plated AAA rating of the United States seems all untouchable.

The top notch rating certainly has helped with continuing debt financing and bolstered the confidence of some government officials. Secretary Geithner, for example, said in a February interview that the U.S. government "will never" lose its credit rating, despite big budget deficits and a newly raised debt ceiling of $14.3 trillion.

Along came a Beijing-based rating agency--Dagong International Credit Rating Co. Its first order of business is to downgrade sovereign debt ratings on some major Western nations, while slamming its Western counterparts.

"The reason for the global financial crisis and debt crisis in Europe is that the current international credit rating system does not correctly reveal the debtor's repayment ability."

 

[Big Fitz]

S&P cuts U.S. outlook to negative

RATINGS-USA/S&P (URGENT)NEW YORK, April 18 (Reuters) - Standard & Poor's on Monday downgraded the outlook for the United States to negative, saying it believes there's a risk U.S. policymakers may not reach agreement on how to address the country's long-term fiscal pressures.

Welcome to the top of the rollercoaster. I sure hope the track gets back to the station. It's going to be a crazy scary ride in which we may all be destroyed.

 

[Big Fitz]

Dollar destruction will accelerate from here on in. Just ordered 1 ounce of Gold and 23 ounces of silver last Friday, glad I did!

I suggest everyone do the same unless they want to see their life savings greatly diminished.

I have also been stocking up on food (for the coming inflation) and ammunition for the last 6 months or so.

I wish I could. I don't have the capital to do it with.

 

[william the wie]

Carter's second term looks like it will be the same as the first.