Dollar Falls as Standard & Poor’s Puts U.S. on Downgrade Review

[brooklynite]

Source: Business Week

July 15 (Bloomberg) -- The dollar weakened against most major peers after Standard & Poor’s Ratings Services became the second ratings company this week to say it may downgrade the U.S.’s top credit grade.

The U.S. currency dropped against the euro after S&P said there was at least a 50 percent chance it will lower the AAA rating within 90 days, citing the risk of a stalemate enduring beyond any near-term agreement to raise the nation’s debt ceiling. The yen and Swiss franc extended this week’s gains against a majority of their most-traded counterparts as investors sought the safest assets.

...snip...

The dollar fell to $1.4174 per euro as of 8:57 a.m. in Tokyo from $1.4143 in New York yesterday. The currency declined to 78.95 yen from 79.14 yen yesterday, when it fell to 78.47, the weakest level since March 17. The 17-nation euro traded at 111.86 yen from 111.92.

The U.S.’s long-term rating may be lowered by one or more notches into the AA category in the next three months if S&P concludes Congress and President Barack Obama’s administration haven’t achieved a credible solution to the rising government debt burden and aren’t likely to achieve one in the foreseeable future, according to a statement.

Read more: http://www.businessweek.com/news/2011-07-14/dollar-falls-as-standard-poor-s-puts-u-s-on-downgrade-review.html

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No doubt Rush will be identifying another rating agency "beholden to Democrat interests" in tomorrow's show.

[proud patriot]

1. I wonder how much Canotr has made from this

[Tempest]

2. The cost of borrowing just jumped

Thanks Republicans.

[JDPriestly]

3. Moody's apparently just raised Colombia's rating because it

has a conservative government that stopped the rebels. These ratings are worthless.

They are just aimed to harm Obama.

Look at the list of national debt to GDP ratios.

http://en.wikipedia.org/wiki/List_of_sovereign_states_by_public_debt

All of the highly industrialized countries that have to import oil have high ratios.

Countries that are underdeveloped -- like South Africa and even Russia -- as well as oil-rich countries have low ratios.

The key in my view is energy independence. We spend too much on imported energy. We need to invest more in alternatives that don't have to be imported.

China has a low debt to GDP ratio as does Russia. Now aren't those examples of wonderful economies.

The whole thing makes no sense to me.

We need to drop the international trade, IMF dominance of our economic ideas. By their standards, none of the developed countries are in healthy economic shape.

[Javaman]

4. As I stand on the beach of history...

I look toward the sea. I ponder an angry current swelling on the horizon.

My feet sink into the sand of time.

I feel the tide rushing away from me like a breath sucked from my lungs.

Exposed before me are the millions without, the millions with nothing.

As the ocean yawns before me, I stand in awe.

The tower of water crests above me. Darkness envelopes all.