United States Credit Rating Downgraded

Due to the recent budget struggles in Washington, Standard & Poors has downgraded the United States credit rating from AAA to AA+. Credit ratings are used by investors to measure the risk of borrowing from a country, a lower credit rating makes it more expensive for countries to finance their debts. The two main causes of the downgrade were political instability and lack of a sustainable long term fiscal  plan. The United States narrowly avoided default by agreeing on a last minute package ten hours before the country would have run out of money. Still the agreed upon budget did not address the long term fiscal health of the United States.

This is the republicans fault, it’s all the republicans fault. Not a single finger can be pointed at Obama, the republicans have refused to raise taxes making any attempts at balancing a budget impossible. Whatever, I guess it’s not my country but I hope they manage to fix their own problems so they don’t drag the rest of the world down with them. From a Canadian’s perspective anything the American’s do will always affect Canada,

Here’s a link to the PDF by Standard and Poors that explains their rationalization.

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