Hrm... it seems that you don't realize when the ability of US to borrow diminished. The ability to spend on military goes down with it. Aka, just like the USSR, just wait and it will collapse on itself.
When debt-GDP ratio looks out of control. http://en.wikipedia.org/wiki/List_of_countries_by_public_debt Anyone has a better source? I don't trust Wiki personally.
ratings don't matter. It could be 11111+ . The better question: is there enough money out there to buy the supply of treasuries coming to the market?
A downgrade doesn't have to come in the form a ratings agency. De-pegging from USD would do the trick. FWIW; CME has seen the handwriting. http://cmegroup.com/trading/equity-index/euro-emini-sp500.html The physicals are not far behind. JMO Osorico
True, That would be like chasing a police officer you saw ran a red light without using the signal and trying to do a citizens arrest.
There will be by golly, even if they have to run the computers all night to add reserves. But ignore that man behind the curtain. Step up and ask Uncle Samta the Wizard what you want for Chistmas in November. And mix in a couple other literary allusions while you are at it. I'm asking for a 10k stimulass check for everybody (cuz we'll be taking up the butt like never before when the bill finally arrives), world peace, and a coherent foreign policy that spans administrations. Meanwhile, I have to figure out how to protect my money and stuff before we get that wonderful cocktail of raging inflation, rampant unemployment, higher taxes and (you know it's coming) federal wealth taxes.