unless the U.S. runs out of ink and paper, I have no idea how U.S. debt, owed in U.S. currency, can be anything other than AAA.
Which would lead to inflation, which our creditors won't like very much.
doesnt matter in terms of credit rating...all the debt is is a promise to pay in US dollars...it's the dollar's stability that is really in question, but questioning the rating of US debt owed in US dollars is really dumb
Of course not. S&P/Moody's are more political systems than financial institutions. Why do you think they gave the ratings they did on all those bad mortgage deals in the 2000s?
If the United States is not AAA, then there are no AAAs in the world as 99% of business flows through this country and every country suffers from a bad US rating. This decision will likely hurt S&P as banks, who have imposed AAA bond requirements for capital, will chose to follow Moody's reports from now on so they don't have to restructure.
Movements on DJIA today only serve to pull bad investors out of the market who are swayed by amateur non-news like the bond rating.
