US Government Debt Rating Lowered to "C"

Examiner
MaryHolloway Love

Weiss Research, a very well respected firm headquartered in Florida, had it's ratings section, Weiss Ratings, iniated it''s coverage of sovereign nations debt by slashing US Government Debt to a "C" rating, which is only 2 points above junk status. Many analysts and economists feel this may well result in a rift, as S&P has been making noises for over a year now about doing this very same thing.

Many signs have pointed to deep pressure put on them by some in the administration to hold off and have a wait and see attitude until after QE2, though there were no economists who believed that QE2 was going to be the magical panacea that Bernanke demanded it be.  It  remains to be seen if S&P will now take the plunge, especially with the US Dollar sinking sharply, the US monetizing it's own debt and continuing to keep the money printing presses in action, thereby contributing mightily to the devaluation of the dollar and the incoming inflation that experts say has reared it's ugly head and is about to become quite a problem, given the high unemployment numbers, the rising prices, the stagnant wages, all of which combine to put additional pressure on the Treasuries and the Dollar and neither have any good news on which to base a rally.

Spot silver is up nearly 60% just so far this year alone.  It settled at $49.13 an oz yesterday after teasing $50/oz, but still higher than 1980 when the Hunt Brothers were cornering the market in silver. Yet another day, silver made another new high. Gold also hit another record high to settle at $1539.40/oz at close of NYMerc.

 

Weiss Research, a very well respected firm headquartered in Florida, had it's ratings section, Weiss Ratings, iniated it''s coverage of sovereign nations debt by slashing US Government Debt to a "C" rating, which is only 2 points above junk status. Many analysts and economists feel this may well result in a rift, as S&P has been making noises for over a year now about doing this very same thing.

Many signs have pointed to deep pressure put on them by some in the administration to hold off and have a wait and see attitude until after QE2, though there were no economists who believed that QE2 was going to be the magical panacea that Bernanke demanded it be.  It  remains to be seen if S&P will now take the plunge, especially with the US Dollar sinking sharply, the US monetizing it's own debt and continuing to keep the money printing presses in action, thereby contributing mightily to the devaluation of the dollar and the incoming inflation that experts say has reared it's ugly head and is about to become quite a problem, given the high unemployment numbers, the rising prices, the stagnant wages, all of which combine to put additional pressure on the Treasuries and the Dollar and neither have any good news on which to base a rally.

Spot silver is up nearly 60% just so far this year alone.  It settled at $49.13 an oz yesterday after teasing $50/oz, but still higher than 1980 when the Hunt Brothers were cornering the market in silver. Yet another day, silver made another new high. Gold also hit another record high to settle at $1539.40/oz at close of NYMerc.

With the dollar falling and Bernanke giving the first ever scheduled Press Conference by a Federal Bank President in the 97 year history of the Federal Reserve,during which Mr. Bernanke announced the continuation of QE2 and the loose moetary policies currently in place would continue. Those words lit a fire under the precious metals and they took off once more as protection from economic chaos and also to combat and offset inflation.

Look for the equities markets to open flat to lower, and expect quite a lot of activity in the entire spectre of Precious Metals as most traders and technicians and many of the hedge funds want to go home long the metals over the weekend. It seems as if no one trading these shiny substances can bear to be barehanded. Buy any dips, and if no dips, buy and dollar price average.