US may lose Its 'AAA' rating, go bankrupt

[w¡n9Nµ7 §£@¥€r 123]

The United States may be on course to lose its 'AAA' rating due to the large amount of debt it has accumulated, according to Martin Hennecke, senior manager of private clients at Tyche.

"The U.S. might really have to look at a default on the bankruptcy reorganization of the present financial system" and the bankruptcy of the government is not out of the realm of possibility, Hennecke said.

"In the United States there is already a funding crisis, and they will have to sell a lot more bonds next year to fund the bailout packages that have already been signed off," Hennecke told CNBC.

In order to solve or stem the economic slowdown, Hennecke suggested the US would have to radically reduce spending across all sectors and recall all its troops from around the world.

As for a stimulus package, there is not much of an industry left to stimulate back into life, Hennecke said.

http://www.cnbc.com/id/27641538

[mawilson 2,133]

The United States may be on course to lose its 'AAA' rating due to the large amount of debt it has accumulated, according to Martin Hennecke, senior manager of private clients at Tyche.

Not that much debt, relative to our GDP. Japan's debt actually *exceeds* their GDP and they are considered one of the safest investment markets.

[w¡n9Nµ7 §£@¥€r 123]

The United States may be on course to lose its 'AAA' rating due to the large amount of debt it has accumulated, according to Martin Hennecke, senior manager of private clients at Tyche.

Not that much debt, relative to our GDP. Japan's debt actually *exceeds* their GDP and they are considered one of the safest investment markets.

Interesting, I am looking on Wikipedia and the list of countries with Debt/GDP ratios of .99 or more are Zimbabwe, Japan, Lebanon, Seychelles, Jamaica, Egypt, Italy, Singapore and Sudan.

What an interesting list.

[Saddle Bronc 124]

The United States may be on course to lose its 'AAA' rating due to the large amount of debt it has accumulated, according to Martin Hennecke, senior manager of private clients at Tyche.

Not that much debt, relative to our GDP. Japan's debt actually *exceeds* their GDP and they are considered one of the safest investment markets.

Interesting, I am looking on Wikipedia and the list of countries with Debt/GDP ratios of .99 or more are Zimbabwe, Japan, Lebanon, Seychelles, Jamaica, Egypt, Italy, Singapore and Sudan.

What an interesting list.

Especially interesting is that US (which has had solid deficits since 2003 at least) has lower debt/GDP ratio than its northern neighbour Canada (which has had surpli? since 2004).

(since I don't know the plural of "surplus"....)

[w¡n9Nµ7 §£@¥€r 123]

Well all that means is they're not growing GDP enough.