Feri ranks the creditworthiness of the United States down

Bad Homburg, 8 June 2011 - The Bad Homburg € Feri Rating & Research AG downgraded the first credit rating agency's credit rating for the United States from AAA to AA. Feri analysts justify the step with the continuing deterioration of the creditworthiness of the country due to high public debt, inadequate fiscal consolidation measures and weaker growth prospects.

Link www.godmode-trader.de...

Had to use google translate as it's in German.

This can not be good but surly has been expected the first downgrade of many I suspect the article gives it's reasons for the downgrade.

"The U.S. government has combated the effects of the financial market crisis has so far primarily by an increase in government debt. We do not see that here is sufficient countermeasures, "said Dr. Tobias Schmidt, CEO of Feri Rating & Research AG €. "Our rating system shows a deterioration in unique, so is the downgrading of the credit ratings of U.S. natural fit."

But you can bet the printing presses will continue pumping the cash.

Feri Rating & € is on the Federal Financial Supervisory Authority (BaFin) as an EU credit rating agency approved and created more than 20 years, sovereign ratings. Every month, the Feri analysts evaluate from the perspective of a foreign investor's ability and willingness of countries to repay their debts. The result is the evaluated country has a credit rating in eleven possible gradations between "AAA" (best credit) and "Default".

Sorry I'm not good with this monetary stuff but I know AAA to AA is not good looks like you Americans will have to go through the cuts like the rest of us.

Thanks

Cuts?? What do you mean? We don't need to make cuts! We will just print more money and borrow more money and...

Yeah, I figured it was only a matter of time before the US starting taking hits from various credit agencies. They can only hold off doing it for so long. No more 'kick the can down the road'. Time to start facing reality.

While this is not good, it is not good to carry on printing and I for one don't know what the answer is, but propping up the balances of the to big to fail is wrong.

As for cuts, from long and lengthy discussions with my family in the US (the larger part of my family) for most of them it feels like service upon service has already been cut/scaled back or cancelled already.

From what I can gather by making comparisons them/us/now/past, we (as in all the peoples) are suffering deeply no matter which the side of pond we are on, it just seems the US side of the pond is still spending, but that spend in not filtering down to the peoples.

Not sure what will happen next.. but the delaying tactics used throughout the Western world will not work for ever..

You are correct...the United States will have to make cuts...what scares me is that the US Government will not make cuts...but just keep printing money.

As for cuts... the greatest impact, as I see it, will be felt in urban areas...cities, munincipalities...especially areas where recipients of welfare, public housing, food stamps, med programs, public services are concentrated.

That is why I live way out in the country.... "government programs?...We don't need no stinking government programs."

Seriously, most of the people I know out here don't count on the government for anything outside of paved roads...and even then, that is why most of us have 4x4 trucks, horses, wagons, ATVs and 4 wheelers...

Now...the paradigm changes drasticaslly and tragically if the US Government starts seizing property and people's retirement accounts...unlike Europe, the far east, Asia, or Africa...the US populace is well armed...probably 2 guns for every man-woman-child. That would make a hell of a Civil War...through in a foreign "peace keeping" force, martial law... middle America quickly turns into Yugoslavia circa 1994.

Interesting, now this rating agency is German is it? Well, take note, when the Germans speak on issues of the economy, debt, deficits and so on, people and other rating agencies should listen. The Germans have the economic performance to support their argument, much more than the ramblings of other agencies and economists.

reply to post by surrealist


Sorry about that it's the only link there is at the mo.

Only five days ago Moodys threatened a downgrade.

WASHINGTON — Moody’s Investors Service warned Thursday that it might downgrade the United States government’s sterling credit rating if Congress did not increase the nation’s debt limit “in coming weeks,” putting a spur to the sputtering talks between party leaders and the White House on a plan to restore fiscal stability.

Link www.nytimes.com...

Can someone please tell me how increasing the nation’s debt limit will help that's like saying cool we can borrow more now.

Thanks

World superpowers don't let a thing like a bad economy get in the way of their lifestyles! the stagflate and then escalate (the growing world conflicts, that is!)!

Look at the last two major cycles of staflation in US history! they ended in world war 1 and world war 2, and to a lesser extent the korean war, vietnam, and the 1st gulf war.

It's looking like the US' current foreign policy is setting the stage for the first major conflict of the 21st century because of stagflation.

reply to post by mars1


No worries, thanks for that anyway. No raising the debt limit is not a solution and will only postpone the inevitable. I have just posted this news story and linked this thread to the article on Reuters I posted on the Breaking Alternative News forum:

www.abovetopsecret.com...

I think these two articles complement one another to some extent.

God your leader loves to spend money you don't have.

Obama Presses Europe, Pledges Help for Greek Crisis

President Barack Obama on Tuesday urged European countries and bondholders to prevent a "disastrous" default by Greece and pledged U.S. support to help tackle the country's debt crisis.

Link www.cnbc.com...

But Feri just downgraded US for there debt and he wants to help Greece.he jabbers on to say.

"I'm confident that Germany's leadership, along with other key actors in Europe, will help us arrive at a path for Greece to return to growth, for this debt to become more manageable," Obama said.

So it looks like he's putting this on Germany's shoulders that's nice of him now what is he going to do about your debt

Thanks

Very strange did this thread this morning and still the OP link is the only one the MSM is not saying anything I know it's only one of many rating agencies but still big news.

Never mind this clock keeps ticking

www.usdebtclock.org...

Feeling sick yet.

Thanks

Just saw it on Zerohedge First of many i hope

Here is the Website of Feri´s

An individual's capability to get credit is determined by several factors. Most of those variables are decided by a person's financial behavior. One which can't, short of establishing residency elsewhere, is the state your home is in. The credit reliability of all 50 states has been ranked in a brand new analysis.