Economic Pearl Harbor? US Debt Rating Downgraded to Negative
The Standard and Poor's (S&P) said it was cutting the outlook on the US's long-term rating from stable to negative for the first time since the attack on Pearl Harbor 70 years ago.
For those that do not understand economics: This is bad!
This means that the S&P thinks that the United States of America is not going to be able to control its national debt and that it is in jeopardy of becoming like Portugal, Ireland, Greece, and Spain (The PIGS countries of Europe) which have had to make major financial overhauls of their economic systems. These countries bonds have Junk Bond ratings which means they are like playing the lottery. You may win but you probably won't.
If athis still doesn't mean anything to you know this little fact. The value of the dollar bill in your wallet is now worth less than it did yesterday which means things like gas will cost more. Actions need to be taken today to change the direction of this train which is speeding out of control.
If there is any truth to idea that foreign and domestic forces are trying to break the US economy today may go down as one of those days that started it all. It is more likely that a small number of greedy politicians think that spending the country to death will bring them more power. They may be right.
How is that Hope and Change working out for you?
