Amouna

Risks to U.S. AAA Rating Have Grown

Great article. However, the guys at S&P should all be fired since all they can make is unsustainable predictions.

The US suffers from a fiscal cancer. Its economy, 70% consumption based on borrowing, is not sustainable anymore. It has emerged that China, until now biggest buyer of US treasuries, is not interested anymore in a US dollar exposure and other big creditors are staying away from the dollar. The Fed will desperately keep printing money and throwing good money after bad (it is called a bailout), sending the US dollar into a bottomless pit.

US economy is still the most flexible and innovative one in the world, everyone agrees. However, its very core fundamentals are greatly challenged and may not sustain the shock of confidence the rest of the world is experiencing towards its currency.