Standard and Poor's has cut the US credit rating for the first time in history, saying the country's politicians are increasingly unable to come to grips with its massive fiscal deficit and debt load.Standard and Poors cut US Credit rating.
S and P on Friday cut the US rating from its top-flight triple-A one notch to AA+, and added a negative outlook to it, saying there was a chance it could be downgraded again within two years if progress is not made cutting the huge government budget gap.
It said the "political brinkmanship" of recent months shows that governance in the country is becoming "less stable, less effective, and less predictable," raising the risks that it one day might not honour its debt.
It was the first time the US was downgraded since it received an AAA rating from Moody's in 1917; it has held the S&P rating since 1941.
The rating came after a strong pushback from the White House, which called S&P's analysis of the economy deeply flawed and politically-based.
Now the shit hits the fan! Everyone buckle their seatbelts as we are in for a wild economic ride!