The US debt ceiling:What if the talks fail?

St_George

Originally posted by KurttS at 2011-7-29 13:31
Analysts say that the nation's credit rating may be downgraded even if the debt ceiling is heightened by next week's deadline. Some say, nevertheless, that a reduction is not the terrible thing man ...

They'll come to an agreement you can bet your bottom dollar on that.

Revolutionar

The US debt ceiling:What if the talks fail?





the sky will not fall down even if the talks fail.:lol






on the contrary dont you think  is very healthy for the great USA to have a great debate on the national debt ceiling?




I think it is very natural and very healthy, extremely healthy.

exportedkiwi

Yes, this is true. If the US loses it's AAA credit rating, it'll affect the world far more adversely that default.
I can understand you people looking at it predominantly from a Chinese point of view, but there is a bigger picture that must be considered!

St_George

Originally posted by exportedkiwi at 2011-7-29 14:35
Yes, this is true. If the US loses it's AAA credit rating, it'll affect the world far more adversely that default.
I can understand you people looking at it predominantly from a Chinese point of v ...

Its not in China's interests with so many dollars holdings.

Revolutionar

ratings are not relevant.

The FED will still declare US government debts as qualifying assets and there will be  no shortage of demand from banks and countries. hahahahahahahahah


Japanese government debts have been down graded more than 10 years and still yielding close to zero. hahahahahahaha

St_George

Originally posted by Revolutionar at 2011-7-29 14:52
ratings are not relevant.

The FED will still declare US government debts as qualifying assets and there will be  no shortage of demand from banks and countries. hahahahahahahahah


Japanese g ...

But derating makes their
borrowing more expensive, they're having trouble paying up as it is.  China is gradually diversifying from the dollar but they will do this slowly.

[ Last edited by St_George at 2011-7-29 03:14 PM ]

St_George

Originally posted by St_George at 2011-7-29 15:06



But derating makes their lending more expensive, they're having trouble paying up as it is.  China is gradually diversifying from the dollar but they will do this slowly.

They're also buying hard assets in dollars.