As possible financial Armageddon looms in the shape of warring American politicians, many are asking what happens if the worst - a default by the US on its debt - is avoided, but the country still loses its prized triple-A credit rating?
WASHINGTON (AP) — Most Americans think jarring economic problems will erupt if lawmakers fail to increase the government's borrowing limit. Yet they're torn over how or even whether to raise it, leaning toward Republican demands that any boost be accompanied by spending cuts. According to an Associated Press-GfK poll, 53 percent say that if the debt limit is not extended and the U.S. defaults, the country will face a major economic crisis. An additional 27 percent say such a crisis would be somewhat likely, while just 17 percent largely dismiss the prospects of such damage.
By Plan B Economics:It may not happen next week, but it will happen. It appears that Japan is on an unstoppable path to financial Armageddon.Over the past 20+ years, the Japanese economy has unwound the excesses caused by a giant property and financial bubble. At the same time, the country's aging demographics has increased social costs while the pool of taxable labor declined. Consequently, Japan has stagnated and repeatedly dipped into deflation.
France's ability to support troubled euro zone countries was challenged as the government acknowledged it is unlikely to meet its growth forecast next year and Moody's Investors Service said the stable outlook on its prized triple-A credit rating was under pressure.
LONDON (Reuters) - The outlook for Britain's prized triple-A credit rating remains stable but weaker growth and slippage in the government's fiscal plans could lead to a reassessment, credit ratings agency Moody's said on Wednesday.