Undecided

Is U.S. Debt Losing Creditworthiness?

A near-term change in 10 year rates doesn't mean much to me. While my emotional response to the trillions of extra debt we've taken on recently would have me say that we hardly deserve to be AAA. But, if not us, who? I can look around the world and not see a much better picture. Sure, the Chinese have more cash on hand than anyone else, but what else is important in deciding risk premium? Economic stability, government stability, liquidity, long-term inflation, currency risk, debt levels, budget deficit, public policy works demands, a long-term track record.