I wonder what keeps the rating agencies to hold on to the AAA rating for a country that has the highest public and private debt ever seen in history and absolutely no plans to cut back on their war-induced spending!?
These are all signs of a carnival policy - just let the good times roll at interest rates that don't even cover inflation.
Normally the skyrocketing advance of debts should initiate a rating review. Who will touch that hot potato first? Or is this just another example of covert government influence/pressure in order to keep the party going a little longer?
In my opinion, any corporation in the world would have seen their rating dwindle to at least a single A rating! Will this system only be brought down in a standoff between investors and the Fed where the rating agencies will have been squeezed out because of their politically motivated ratings that have diverged too far from reality as still to be considered rational? Foreign investors are already beginning to vote with their feet and reduce their $ holdings. When will the rating agencies open their eyes again and see these facts? Or are they coerced into sticking with their AAA ratings because a deterioration could be the final straw that will nosedive the share markets?
I like your articles. Maybe you already do write for the press, but if not, I suggest you do regular (paid) contributions to the UK financial press. Try a sample to The Independent on Sunday (Financial Section) and also the Mail on Sunday (Financial Section). The public would be interested in your research and prognosis.
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