This is real bad. In one fell swoop The US has lost it’s A-List status in the world arena. There is also a monetary punishment that accompanies this. Any, and it surely wasn’t much to start with, so called budget cuts will be wiped out and then some by the raise in interest rates this loss in AAA status will bring. I don’t know what the figures will be once the dust settles but the USA is a whole lot deeper in debt as of now.
Let’s be honest here. The ongoing decline in the value of the U.S. dollar relative to other currencies — which has been going on for at least 5-6 years — was a tacit admission by the entire world that the U.S. “credit rating” was far lower than AAA to begin with.
Here we go...