OK so the USA credit rating has been cut to AA+.
So now the question is, what about UK,Spain, Italy, France, Belgium, Netherlands, Germany etc
In my view the USA could have been cut to a single A rating.
This will be a short term panic.
Why? it all levels out. If all the main countries start to have lower credit rating according to the Credit agencies calculations, then where is the new benchmark? eventually the benchmark will be lower and we start again from a lower range, so the USA can be marked up again to AAA!
God forbid if the Chinese Remimbi becomes the reserve currency, that will be the end of the USA power!
So now the question is, what about UK,Spain, Italy, France, Belgium, Netherlands, Germany etc
In my view the USA could have been cut to a single A rating.
This will be a short term panic.
Why? it all levels out. If all the main countries start to have lower credit rating according to the Credit agencies calculations, then where is the new benchmark? eventually the benchmark will be lower and we start again from a lower range, so the USA can be marked up again to AAA!
God forbid if the Chinese Remimbi becomes the reserve currency, that will be the end of the USA power!
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