S&P Cuts Outlook

Standards and Poor's downgraded its outlook for the United States from stable AAA to NEGATIVE, finally someone within our boarders is willing to face reality, and not side with the United States of debt denial. The rating cut could come as soon as 2013, I am thinking sooner than later. This puts a blaring spotlight on inept fiscal policy's attributed to both parties. We all know it is impossible to spend your way out of the debt, and now there is hope in moving forward. If your interest rate is to high even an idiot will be less likely to borrow unless it is your intention to perform strategic default in the first place. Hopefully this is not our Government's plan, but after viewing three years of punishment in the great recession I would not be surprised. China has just upped its reserve requirements recently, and has cooled inflationary pressures within its own Economy from over 13% to around 8.5% in less than 2 years. I really do think the Chinese are using the actions of our Federal Reserve as a micro-model of what NOT to do. We are now on schedule to be replaced as the worlds premiere Economic superpower within the next 20-years or so, but I would liken this situation to estimating the melt rates of the polar icecaps due to global warming. Whatever your belief system the rate is accelerated.