Tuesday, May 12, 2009

US Credit Rating to Fall?

The US Dollar fell to it's lowest level in months against major world currencies. A news article on the Bloomberg website, Dollar Falls, Ratings Threatened, details how a strengthening Chinese economy has eased fears of a global economic crisis. As a result, those who flocked to the US Dollar as a safety trade are now exiting. Some analysts noted that increased US investment in foreign markets has also added pressure to the dollar.

David Walker warns of Dollar Rating Reduction

Walker reports that Moodys Rating Service warned that increasing Social Security and Medicare costs could engulf the US government in debt for decades. A report today on the health of Social Security said that the system might be insolvent earlier than previously expected.

Expected by whom? Don't think that many of us believe that Social Security will be here for us. It's just been another tax

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