http://www.reuters.com/article/2013/10/17/idUSL3N0I71YW20131017

As the circus & can kicking continues ..

Is the USA becoming unable to manage their finances in a responsible manner ? and if so how does that effect the status as the USD as a reserve currency ....

see

Debt deal done, but dollar's demise deep-rooted http://www.cnbc.com/id/101120085

and

The de-Americanisation of the world has begun – emergence of solutions for a multipolar world by 2015 http://www.leap2020.eu/GEAB-N-78-is-available-The-de-Americanisation-of-the-world-has-begun-emergence-of-solutions-for-a-multipolar-world-by_a14827.html

but also ...

How bad are US debt levels? ... http://www.bbc.co.uk/news/business-24541140

Dagong. Fantastic.

Fitch signals it could downgrade U.S. credit rating

http://www.nbcnews.com/business/fitch-signals-it-could-downgrade-u-s-credit-rating-8C11399906

'One of the country's three major credit rating agencies signaled Tuesday that it could downgrade the United States' rating, citing the impasse in Washington over raising the debt ceiling.'

which has been kicked until 7th feb , so I assume until resolved Fitch is still considering ..

Edited October 17, 201312 yr by churchill

I just heard somebody say ..'.It's democracy at work ' ... Yes fine if you live in the US but not for the rest ...

Washington becomes the biggest risk to the US economy

http://www.cnbc.com/id/101120175

sounds like the still unresolved Euro Crisis

who/what is dagong?

Dagong Global Credit Rating

http://en.wikipedia.org/wiki/Dagong_Global_Credit_Rating

Edited October 17, 201312 yr by churchill

Fed Fisher: Mon Pol Can't 'Offset Rot Destroying Fiscal House'

https://mninews.marketnews.com/content/fed-fisher-mon-pol-cant-offset-rot-destroying-fiscal-house

and this gives confidence ..

Mitch McConnell gets nearly $3 billion for Kentucky dam project in congressional deal http://news.yahoo.com/congressional-deal-includes-nearly--3-billion-for-kentucky-dam-project-001012679.html

Edited October 17, 201312 yr by churchill

who/what is dagong?

Dagong Global Credit Rating

http://en.wikipedia.org/wiki/Dagong_Global_Credit_Rating

I think they make smartphones on the side also.

who/what is dagong?

Nothing important. a joke of a rating company. Controlled by the Chinese govt

When the US defaults and the dollar collapses, what will be the world's safe haven?

The US dollar.

http://au.finance.yahoo.com/news/rallies-us-dollar-sell-off-203215151.html

The sell-off hastened on reports that Chinese ratings agency Dagong downgraded US debt from A to A-, BK Asset Management managing director Boris Schlossberg said.

"The move was no doubt self-serving and part of a broader Chinese campaign to `de-Americanise' global trade as China attempts to ascend to reserve currency status, but the move nevertheless provided the fuel for further US dollar liquidation," Mr Schlossberg said.

I thought a dagong was a protected marine species sometimes found washed up on beaches in the South.

I thought a dagong was a protected marine species sometimes found washed up on beaches in the South.

Dugong.

From OP:

[quote]"How bad are US debt levels? ... http://www.bbc.co.uk...siness-24541140 "

Well you have to scroll down to the second and third chart to see the leading countries' debt to GDP levels. You can't just take the US' debt in a vacuum, without realizing that it is the world's largest economy by double whoever is in second place. So it can sustain more debt. As a ratio of debt to GDP, the US is twice as well off as Japan, for instance.

Also, you have to look at the asset side of any ledger to see the whole picture. Debt shown without assets is a meaningless number.

Also, you have to look at who's leading in technology and who has products that make it's corporations money. Look at what Google just did with a 12% jump in earnings, and stock price heading for $1,000 a share. The rest of the world has NO economic engine like that to create jobs and pay taxes.

Never confuse or combine the private sector's income and wealth with the government. The private sector pays the taxes and the government spends them. China, which put out the negative report, is communist. The government owns much of the means of production and there is no transparency. They are corrupt like so many emerging countries. You can't believe anything they report about their fiscal condition, which is actually horrible.