The decision came despite the U.S. raising the debt ceiling and averting a default, and even as both Fitch and Moody's re-affirmed the U.S.'s Triple-A rating. China's central bank urged the U.S. to act "responsibly" on the debt situation. We're still awaiting S&P decision on their rating, they have indicated a downgrade based on the current Obama plan, S&P where looking for $4 trillion in cuts, rather than the approximate $2 trillion, of which only approximately $1 trillion of cuts have been worked out. Most of the cuts (2/3rds) will only occur in the latter years of the 10 year period. This is utterly ludicrous and a con to the American people.
One thing the world takes from the USA ratings decision not to downgrade their OWN countries debt is they're too close to be trusted on bias to the ratings. There is strong potential for manipulation for their own gains or pressure put on them from political connections. We all know how they missed (or turned a blind eye) to the credit & housing bubble. Do we think they could miss a sovereign debt default in their own country, "why sure they can"! This is the reason impartial views should be given stronger weight, with the leading Chinese rating agency downgrade it's a indication of the USA taking their first step onto the debt default slide to oblivion. The demonstration over the past 10 years of politicians taking their country to war level 100% debt to GDP levels, is a strong indication that they're not getting the deficit under control. This is why Gold is on an upward trend.
As they where unable to demonstrate the full cuts to the budget and are passing that decision to someone else in 2017, basically Obama doesn't want to deal with the issue during his term. He'll pass that problem onto the other party who get in power ensuring his ride from here on in is easier than it should be. It will take a far stronger set of characters than those that exist in the USA political world to get this issue of debt onto a sustainable path. This is something that should of been done a long time ago.
Why won't they tax their people at a sensible level, specifically the wealthy. Here's the issue, senior politicians are always too close to the high wealth citizens and are manipulated by the flow of money which in effect is power. They must tax more and regulate better, I would also recommend that they set up a separate independent budget office with links to the IMF and other agencies to assist in getting their debt under control far faster than the current Obama plan that's in place. You have got to deal with this some day otherwise you will default and the USA will end up like Greece. Politicians are just too stare crazy over share prices.
Share Prices are now heading down based on know QE, low growth and Sovereign debts which are out of control and heading for default. The banksters screwed up and passed the screw up onto the public, immoral at the least. Savers have been shafted over the past decade and instead of being allowed to be investors in sensibly priced investments, governments have to constantly create bubbles to enslave people, ensuring the rich stay rich and poor stay poor.
Too long has the world been driven by a flawed Roman Usury banking system which robs from society and feeds the elite families who control our world. It's a system which can give too much wealth to individuals when others are starving to death and have poor access to education. The wealth is delivered to these individuals off the back of main street, yet they refuse to give up their bloated profits for the good of humanity. Without taxes on the rich we can't deliver high levels of education to the masses of young, which in turn develop humanities future and speed of progression.
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