
US May Lose Its 'AAA' Rating - gibsonf1
http://www.cnbc.com/id/27641538
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ars
Garbage article.

It's a slow down, but it's hardly a collapse. Have some perspective please.

And the US debt level is not the big when you compare to other countries.

And recalling troops isn't going to help much. The money you give to soldiers
gets put back into the economy anyway.

If the US really was worried about it's debt load, it would just inflate it
into nothing. No need for bankruptcy.

That's an interesting form of tax: instead of direct tax, just borrow money
and inflate it. You can keep doing that forever, and no one ever has to pay
tax.

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nradov
When the debt burden becomes onerous I expect the government to default rather
than inflate. High inflation would create far more problems in the domestic
economy.

There is precedent for a country defaulting on debt denominated in it's own
currency. Russia did that in 1998 (although it was also accompanied by high
inflation). They managed to recover reasonably well afterward. Eventually the
USA will probably force its debtors to accept a cram down, with bonds still
retaining their face value but a drastic decrease in interest payments and an
extension in the repayment period.

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carterschonwald
the end of the article makes this sound more like a politically inspired
statement than an economic one.

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charlesju
Ratings are relative to the rest of the world, currently, while the US is
doing really really bad, everyone is doing much worse.

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josefresco
From another article...

"Hennecke's stock allocations are mainly Asian-based, especially in the
Chinese market as the country's government has a large amount of cash and the
macroeconomics are fundamentally strong."

