US debt downgrade in 2013?

Saw this posted on another forum:

www.investors.com...

Seems that with the current and projected levels of government debt the US might lose it's AAA status in as little as 3 years and almost certainly by 2020 if action isn't taken.

This would obviously be very bad for the US and the global economy but could it lead to another downward spiral as the cost of borrowing money increases for the federal government?

[edit on 9-5-2010 by Chris McGee]

It would be bad, IF it were allowed to happen.

Somehow, I doubt that it will be allowed to happen,

reply to post by Chris McGee


the US Treasury (i.e. the Fed Gov't) already has a willing and deep-pockets buyer for the Gov't Debt ---
The Federal Reserve

they are presently buying up to 70% of the USA debt right now,
Why?
probably because they get a ~3% return on the bonds/notes themselves
AND they get another 5% on lending the Gov't their own money printed from thin air ...in the form of those same Bonds and Notes...


these guys are in perpetual hog heaven in my book !!


the only way a rate in borrowing might increase is because the EU ihas to offer more return interest on their Bonds/Notes than the USAs rate...
which would inevitably open the gates to higher return rates on gov't debt all over the global financial realm...

in a ploy by the Treasury (to essentially deflect the appearance of Sham/Scam) the USA Treasury would increase debt interest rates to conform to the status-quo 'norm' (even though the Treas. is quite satisified with the present combined +8% interest the FED-RESERVE
is presently bilking the nation for)

~ but hey sheeple 'your free' ~

[edit on 9-5-2010 by St Udio]

It may happen sooner than that. Our future expenditures are largely beginning now. This oil spill, floods, earthquakes, summer is coming so expect hurricanes, military operation all over the world, and we still haven't seen the end to the Obama/Bush spending agenda.

Indeed, we also have to worry about the unforseen. We are living in very dangerous and hard to manage times.

reply to post by Chris McGee


this will never happen...

Banking was conceived in iniquity and was born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take this power away from them, and all the great fortunes disappear, and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create money and control credit.

* Attributed to Josiah Stamp by Silas W. Adams in The Legalized Crime of Banking (1958).

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this is just following through accumulating massive debt to steal all the tangible assets & goods produced by the working classes..