Quote:
Originally Posted by Daradon
While the actual economic evidence and reasoning behind the downgrade is definitely debateable, I do think the bigger story is the politcal climate and that was referenced as a cause of the downgrade too. The politics and brinksmanship behind the decisions (or lack thereof) and the childish way in which the government negotiated and tried to fix this problem is very scary. And when taken as part of a larger picture of what has been going on in American politics, I think there are legitamite concerns about how the country may right the ship, if they can.
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Well that is all well and good except for a few things: (A) a credit rating is not really a comment on the political climate. Its supposed to be a rating on the likelihood that you can pay your debts. (B) and perhaps most importantly, the US can always print more money. In other words taking the hyper-inflation aspect out of the equation (which is not a concern in the least right now!) its virtually impossible for the US to actually default. They theoretically ought to be either "AAA" or "D" in theory because if they were that close to a default they could turn on the presses...