Saturday, August 6, 2011

USA loses it AAA

So Standard & Poor's has downgraded the United States' credit risk to AA+.

We all new this was coming.

This is how the market works. Even nation-states cannot remake the rules. If they cannot service their debt, they will be saddled with higher interest rates and greater fees.

If the long-term affects of this economic trickle down fast enough, then enough sleep consumers and sit-and-watch citizens will stand up and demand the United States Government to get its act together.

A reality check if nothing else, this downgrade is the call to Congress and the Beltway to get real. Deficits do matter, national debt is a national disgrace, and if the American People are balancing their budgets and discharging their debt, then so should the U.S. Government.

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