Moody’s Investors Service said the dollar’s unchallenged status as the world’s reserve currency is supporting U.S.’s Aaa credit rating even as the nation’s budget deficit is set to quadruple this year.
“In the absence of a credible alternative it’s hard to see abrupt changes and that’s not even in the interest of the creditors,” Pierre Cailleteau, managing director of sovereign risk at Moody’s, said in an interview in Tokyo yesterday. The credit rating “remains solid,” he said earlier at a briefing.
The fiscal health of the world’s largest economy has come under scrutiny by its creditors as bailouts and stimulus plans swell a budget deficit forecast to soar to a record $1.85 trillion this year. China and Russia, the largest and third- largest foreign holders of the debt, have said they may diversify some of their reserves.
Even if the U.S.’s ratio of debt to gross domestic product were to exceed 100 percent, more than double the current level, the country’s rating would still be secure as long as borrowing costs stay low, Cailleteau said. Moody’s estimates the ratio will rise to 59.9 percent this year from 40.8 percent.
June 24th, 2009 at 11:09 am
What a bunch of BS.
CivilianResistance Reply:
June 24th, 2009 at 6:11 pm
Yeah, like i am going to believe anything Bloomberg has to say about the dollar…
June 24th, 2009 at 12:06 pm
You don’t NEED money… you need the things money currently can buy.
Think about it!
June 24th, 2009 at 12:40 pm
If they have no alternative, then they are as funked as us.
LOL
Bring the lube, it might make it easier.
June 24th, 2009 at 8:06 pm
This is a deliberate, systematic, studied crash of the system and subsequent looting of it by Wall Street’s most powerful interests, nothing more. Like the Great Depression, where millions lived in misery as the rich got much, much richer, the globe is experiencing a massive value drain so that a few interests on Wall Street can build dynastic wealth in a few short years.
I could go on, and cite many other contributing deliberate manipulations. I won’t bother. You probably know most of them. A friend of mine has written a stunning book outlining the history of all this, as well as defining in detail the manipulation – it is a masterwork, and hopefully will soon find a publisher.
But the truth is that we are witnessing a nation whose policy is being run so special interests can profit at unprecedented levels while the standard of living of the populace inevitably declines to accommodate the transfer of wealth. It is completely deliberate, and not a bit of it is accidental. The smartest guys in the financial world didn’t all just get stupid and blow it – that’s a facile cover story being propagated by the captured press. They knew exactly what they were doing, they crashed the system to profit at levels it would normally take 50 years of stability to see, and they could give a rat’s ass whether you work at Burger King during your retirement as a result.
They win. You lose.
June 24th, 2009 at 8:45 pm
GOLD & SILVER & other precious metals are the alternative!!!! DUH!!! Even I can figure that out!!!! Of course, today’s money is as phoney as global warming !!!!! Boy, do I feel stupid. all these years I’ve uglied right along, chasing a dollar to live on, when it meant nothing. May God forgive me, what foolishness !!!!!! The ONLY thing that matters is the end. ARE YOU SAVED??????
June 25th, 2009 at 1:50 am
GOLD & SILVER & other precious metals are the alternative.
It’s the SAME thing. Controlled scarcity to ensure you work as slaves.
June 25th, 2009 at 3:42 am
Somehow I think Blue-steel, brass and lead will be the new reserve currency
if this crap keeps up.
truth911 Reply:
June 25th, 2009 at 6:33 am
im buying a bow -silent death
Artyom Reply:
June 25th, 2009 at 9:30 am
lol!!!!!! Awesome!
)))) John Rambo )))))))
June 25th, 2009 at 6:32 am
yes a we know who caused it and we see a nwo coming into view, they think they will just walk right into the nwo money system, not gonna be that easy assholes because god is real and you will not defeat him
June 25th, 2009 at 8:39 am
Moody’s huh? Aren’t those the same guys that rated all those subprime and Alt-A mortgages as AAA?
I’d pretty much do the opposite of whatever those clowns say.
Artyom Reply:
June 25th, 2009 at 9:33 am
They’re rating system is just a part of the US government’s hegemeny in the world. No matter how large their debt and the growing inability to pay back that debt, they still receive AAA status. Only the US officials are saying there is no alternative to the US dollar. The others understand they rely on it now, but are studying ways to rid themselves of the dollar. You know what they say, if there is a will there is a way. And it is just a matter of time now.