Title: US Debt Rating Should Be 'C': Independent Agency-only 2 notches above 'junk' Source:
CNBC URL Source:http://www.cnbc.com/id/42871647 Published:May 3, 2011 Author:CNBC.com Post Date:2011-05-03 09:08:25 by Happy Quanzaa Keywords:Obama-doma-ding-dong, Obamatuer Obamanomics Views:2006 Comments:1
There have been increasing concerns about the fate of United States' prized triple-A sovereign debt rating. While Standard and Poor's recently downgraded its U.S. debt outlook to negative from stable, implying that a ratings cut could happen in two years, one independent ratings agency has given the U.S. sovereign rating a "C".
"A 'C' is equivalent to approximately a triple-B on the S&P, Moody's and Fitch scales. It's two notches above junk and one notch above the equivalent of a single A," Martin Weiss, President of Weiss Ratings, told CNBC Tuesday.
The grade reflects the U.S. massive debt burden, low international reserves and the volatility in the American economy, he said.
The U.S. government debt is fast approaching the $14.3 trillion ceiling, with the debt-to-GDP ratio close to 100 percent. And a downgrade of U.S. Treasurys - one of the most widely held assets - could theoretically raise borrowing costs and in a worst case scenario, trigger a default on the government's debt obligations.
America's rating was ranked 33rd out of 47 nations, according to Weiss, which began tracking sovereign debt last year. France and Japan also got a "C" rating, while Only China and Thailand received an "A" rating.
Weiss Ratings based its score purely on statistics, and does not take into account qualitative factors such as political stability.
With each passing day the world moves closer to dumping the US Dollar as 'the' go to currency.
The day it happens, and at this rate there is no stopping it, our economy collapses.
There was a moment where we could have reversed this course the GOP and the Bush Administration had us on through 2006's election cycle.
But Pelosi Galore, Dingy Harry Reid, and Barack Hussein Owe-bama decided 'fuck it, this is the quickest way to eliminate America as the worlds only remaining Super Power, and bring about liberal Utopia'.
The only question is will the collapse occur before next years election cycle.
