By Dan Bell
The NZD/USD made a new post float high over 0.8400 this morning after credting rating agency Moody's Investor Services placed the Aaa bond rating of the United States government on review for possible downgrade.
The United States may lose its top-notch credit rating in the next few weeks if lawmakers fail to increase the country's debt ceiling, forcing the government to miss debt payments, Moody's Investors Service warned on Wednesday.
Moody's was the first among the big-three rating agencies to place the United States' Aaa rating on review for a possible downgrade, which means a negative rating action is impending.
In a statement, Moody's said it sees a "rising possibility that the statutory debt limit will not be raised on a timely basis, leading to a default on U.S. Treasury debt obligations."
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
3 Comments
ever since about 1960, is when.
But ever since 1970, is since when they had no choice.
http://en.wikipedia.org/wiki/Peak_oil
http://forums.silentcountry.com/forums/archive/index.php/t-4853.html
http://en.wikipedia.org/wiki/1973_oil_crisis
Kissinger wasn't a nice chap, but he wasn't exactly stupid. The USA peaked in oil production 1970, Nixon unpins the USD from the Gold Standard '71, and Kissinger pins oil to the USD right on the heels of both.
Work it out.
Do they really not address energy, work and the real world, in economics classes?
:)
If the Congress and the President come to a deal and raise the debt ceiling, does it mean that the USA is out of the woods..In fact if they do that, and keep on borrowing, then the rating agencies should keep downgrading USA, because they are being irresponsible..
Either way, let us have a downgrade and be done with it...and watch the fun of other countries struggling to keep their currencies down..
US is lediing the developed world into economic anarchy.....and the rating agencies really don't have any clout to change anything..their credibility has already been shot...
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