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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (12331)	10/4/2008 2:39:04 PM
From: Real Man	Respond to of 71479

He's right, of course, but he forgets that our creditors are foreign and that sovereign debt also has a credit rating. We rate our debt, and we rate it AAA, of course, but it's kinda like subprime AAA ratings back in 2005-2006. To put it mildly, our real sovereign rating is probably close to an F, given 70 Trillion plus (5-6 times GDP) long term government liabilities It seems Mr. CDS market already rates US sovereign debt below that of McDonalds, Inc. In a currency crisis the very same asset deflation stuff happens, but the currency also drops sharply, resulting in price rises and significant inflation. Argentina stuff.