Our AAA Credit Rating (Would AA Be Better Because of Fewer Letters?)

ATR ^ | 5/10/10 | Tim Andrews

[Andrea19]

With the very real possibility of a sovreign debt default in Greece, and the instability it has caused global financial markets, many have asked what it would take the USA to lose its AAA credit rating. After all, any downgrade would have devastating effects on the markets, not to mention sharply increasing the interest rate taxpayers pay on our national debt...

[Andrea19]

Barack Obama promised hope to Americans; soon, all will need hope that he will not overstay one term.

Help promote Conservative activism here & here & here & here

[KarlInOhio]

Can any American company have a higher credit rating than the US government? The biggest danger to investors in US government bonds is not default but Ben & Tim's magical money printing press. If investors are at risk of the government devaluing the currency through inflation, then they are just as at risk of inflation in investing in any company's dollar denominated bonds. Thus if the government is only worth a AA rating, then any other company can only hit a maximum of AA.

This wouldn't apply to European companies because the individual countries could default but they don't have control over the currency unless they start dropping the Euro and go back to the drachma, lire, etc.

[Psycho_Bunny]

The very fact that we have a AAA rating at all means the rating system is worthless.