# The world's worst debtor has the best credit rating possible?



## MARKETWAVES (29 May 2005)

*The world's worst debtor has the best credit rating possible.*

Silly item, good question!

http://www.chinadaily.com.cn/english/doc/2005-05/25/content_445646.htm

Will America lose its AAA credit rating?
flotsam bbs.chinadaily.com.cn  Updated: 2005-05-25 14:39

The world's worst debtor has the best credit rating possible. How IS 
this possible? 

When Nixon defaulted on gold payment in 1971, the world was faced 
with a dollar standard with absolutely no specie currency backing it. 
This was currency supported only based on the faith of the US 
government; faith-based currency! Hallellujah! 

But since the advernt of the Euro, the dollar has lost one of its 
main reasons for people to support it. If Saddam had been allowed to 
exercise Iraq's sovereign right to price oil in Euros, America would 
have lost another reason. The third reason is the Pentagon, but the 
US can only bully small nations. Up against a major power, there 
would be no winners. 

Now, credit agencies have downgraded Ford and GM (by some measures, 
America's largest company). Warren Buffett's Berkshire Hathaway has 
also been downgraded. The excuse is Buffett's age of 74 with his 
partner being 81. Berkshire shares are no doubt selling at a premium 
because of the duo's performance and replacements for them are not on 
the cards. 

However, there is another explanation which would bring these 
anecdotes together. Since companies rarely have a higher rating than 
their host country, the downgrades could well be in preparation for 
downgrading the US of A. It certainly wouldn't be before time!!!!


----------



## wayneL (29 May 2005)

WOOHOO...then the cat would be well and truly out of the bag!

Exciting times we live in, eh?


----------

