Friday, December 11, 2009

Will The USA's Credit Rating Get Downgraded?

Before last year, nobody considered the United States' AAA sovereign debt rating to ever be at risk. Obama and Pelosi have changed all of that with their wild orgy of spending. This chart shows how quickly the USA is moving towards a ratings downgrade, which would roil global markets and make it even harder to service our existing debt. It's all part of the Age of Default. The X axis is Debt to GDP % and the Y axis measures the size of interest payments on the debt. As you move from the upper left to the lower right, you get closer to a downgrade.


sovereign AAA

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