Impact of US downgrade uncertain FRONTLINE Ninez Cacho-Olivares 08/08/2011

Impact of US downgrade uncertain

FRONTLINE

Ninez Cacho-Olivares

08/08/2011
WASHINGTON — Given the size of the US economy and the preeminent role of the dollar worldwide, the cut to Washington’s credit rating ought to spill over throughout the global economy.

But for the same reason — that the dollar and US debt are so widely held and relied on in finance and trade — many analysts think the impact will not be too heavy, at least in the short run.

Standard & Poor’s cut the US’s top-rank triple-A rating down a notch, to AA+, for the first time ever on Friday, technically signaling that the country’s reliability for paying its debts had decreased.

S&P rejected Washington’s efforts to demonstrate it had embarked on a clear path to slash the country’s deficit and reduce its debt load..... MORE

Source:  The Daily Tribune

URL: http://www.tribuneonline.org/commentary/20110808com3.html