Why Aren't Rating Agencies Moving U.S. Treasuries to Junk Bonds? - Seeking Alpha: "In my last article I talked about the folly of rating agencies and US financial system. Considering the junk that most US financial companies hold today without disclosing it openly and that the US government is slowly acquiring that junk by giving them dollars for it, I wonder why rating agencies are not downgrading the US treasury rating to junk. The system of fiat money is very interesting because a government can print as much of it as it wants. And the US government must have installed a few new printing presses recently to provide all the dollars it's showering on failed financial institutions, its war and its public in general....
while the US government borrows it to lavishly spend on wars, to provide $200K houses and $25K cars to people with no means to pay for it and to allow its wealthy people to lower their taxes. And most unfortunately, everyone seems to be ok with it.
But the disastrous consequences of this are being felt all over the globe. I wonder if rating agencies will work again in a reactive manner in this case by taking action only after every global investor realizes the folly of it. Or will they have the courage and wit to inform global investors by acting proactively? Because if fiat money allows the US government to maintain its AAA ratings, then every country in Africa or the third world should also get a AAA rating.
In either case, it's not too far away before global investors, including China and other Gulf countries, realize their mistake..."
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