Did you see this little ditty yesterday? Standard & Poors (S&P) SAYS
THE UNITED STATES' 'AAA' CREDIT RATING COULD BE HURT BY PRESSURE ON
BUDGET FROM AGING POPULATION. S&P WENT FURTHER TO SAY....ABSENT FISCAL
REFORMS, THE UNITED STATES' CREDIT RATING WOULD FALL TO 'A' AFTER 2015,
and 'BBB' BY 2020.
Wikinvest Wire
Wednesday, June 07, 2006
From The Daily Pfennig
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3 comments:
However, Roger, the same report indicates that the US is far from alone in that regard.
They point out that - absent changes - all developed countries will have spec grade debt by 2050 - except for Austria, Canada (yah!), and Denmark.
Thankfully, we (Canada) reformed our pension some time ago, and our public finances are on sound footings.
Jay Walker
The Confused Capitalist
How can the US run out of money to pay its debts, when Ben Bernanke is controlling the printing press.
This sort of threat to downgrade the US credit rating is highly dubious. It took S&P and Moody's about 3-4 years too long to downgrade the U.S. auto companies largely because of political considerations (the market "downgraded" them in 2001-2002). About the only thing that would cause the (US government licensed) ratings agencies to downgrade the US is some sort of nuclear catastrophe in Washington.
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