So the indebted US government has just announced that it will load up in billions if not trillions of dollars of debt in the form of CDOs and MBS from the private sector onto the US treasury account. Of which most of the debt is rated subprime and Alt-A. In technical terms it is rated mostly in the "junk" category. It seems that if S&P, Moody's and Fitch have any credibility left in rating default risk they sure as hell better downgrade the US as there is no way in hell it is any longer +AAA rated. The current US fiscal landscape looks worse than some banana republics (excluding Zimbabwe). I can imagine that there is some backroom arm twisting going on at the rating agencies not to downgrade the US. As the consequences of doing so would see the dollar fall and i-rates leap. But at the end of the day "you reap what you sow". Lax lending along with excess liquidity and no fiscal discipline has created this situation.