Tag Archive for US Credit Rating

Moody’s Reviews U.S. Sovereign Credit Rating for Potential Downgrade

Today, Moody’s Investors Services (MCO) placed the U.S. Government’s bond rating on review for a possible downgrade, substantially increasing the possibility that one of the major credit rating agencies would downgrade the United States’ credit outlook or credit rating, as I warned here on Thoughtsworththinking.net in December 2010.  Neither action has occurred yet, so an…

StumbleUponShare

Disgusted by the Partisan Wrangling over the Debt Limit? Arnold Schwarzenegger has an Answer

As Congress and the Obama administration continue their excruciating negotiations for an agreement to raise the federal government’s debt limit, marching closer to the prospect of default if the ceiling is not raised by August 2,[i] it’s natural to ask whether partisan wrangling makes our government just too slow to make key decisions that need…

StumbleUponShare

Why It’s Good to Hold Gold in 2011

With gold in the mid-$1300s ($1356.70 as of February 11 close), still within sight of its historic nominal high of $1421 on November 9, 2010[i], people who have accumulated gold and gold-related assets are asking if it’s time to sell. While it’s never wrong to manage risk by trimming assets when prices appreciate, I believe that…

StumbleUponShare

Book Review: Reputation and International Cooperation: Sovereign Debt across Three Centuries

It’s all about reputation.  That’s the argument Stanford professor Michael Tomz makes – and credibly supports – in this 241 page work.  Released in 2007 before the financial crisis, Reputation and International Cooperation:  Sovereign Debt across Three Centuries is a serious but readable academic study of sovereign debt that says a lot about how sovereign…

StumbleUponShare

Why Hyper-Inflation Fears are Exaggerated

It’s in vogue for commentators to warn that the booming federal deficit will cause hyperinflation.  However, these commentators rarely acknowledge counterbalancing forces that make this scenario—out of control inflation far beyond run-of-the-mill price increases—unlikely. The first flaw in these alarmist arguments is the presumption that the budget deficit the United States is now running is…

StumbleUponShare