America is in danger of default and downgrade

Gold Market Manipulation History in the U.S.

Fitch Ratings warned of credit that there is a real risk that the United States will lose its excellent AAA credit rating if repeated crisis of 2011 on raising the debt ceiling imposed by the state itself.

Said David Riley, head of sovereign ratings at Fitch during a conference hosted by the company that one thing is certain is that the classification of the United States is under increasing pressure. He added: If repeated crisis in August 2011 regarding the debt ceiling we will create a U.S. rating under review. There will be a real danger to U.S. rating downgrade.

In the meantime, called by U.S. Federal Reserve chairman Ben Bernanke Congress to increase the U.S. debt ceiling, a topic that is a big contrast between Republicans and Democrats. Multiple constituencies, warned that the stalled talks may have been the United States to the brink of bankruptcy.

Procedures necessary

Bernanke said during a seminar at the University of Michigan that it is very important that Congress take the necessary measures to avoid having the government itself unable to pay its bills. Since the end of last December and reached exactly the federal debt to below the legal limit set by Congress 16394 billion dollars.

Without an agreement in Congress, divided between Democrats and Republicans, you may find the state itself again and quickly in the event of default, if not increase this limit. Bernanke stressed during his speech at the University of Gerald Ford to increase the debt ceiling simply gives the government the possibility of existing pay the bills. This will not lead to new expenditures.

Accept settlement

The U.S. President Barack Obama urged Republicans who enjoy a majority in the House of Representatives, to accept a compromise deal on debt in order to spare the United States falling into a new economic crisis. Obama urged members of Congress to move quickly to raise the U.S. debt ceiling, hoping to avoid another confrontation with Republican members of Congress which could lead to the bankruptcy of the U.S. government.

Financial challenges

Obama continued in the last press conference Pfterth first term, which ends on Jan. 20, a strong focus on the financial challenges facing the United States, including the automatic reduction of public spending in March. He Congress can either act in a responsible manner or unleash a series of negative repercussions that could lead to a new economic crisis.

He pointed to the loss of America’s excellent credit rating. Province. Any previous result of the crisis on the debt ceiling. The Office of the Congressional Budget has stated that it must raise the debt ceiling from its current level of $ 16.4 trillion by mid-February in order to finance the annual budget deficit of a trillion dollars.