Dow Drops 140 Pts as S&P Downgrades U.S. Debt Outlook

On the 10 November, I wrote here that China’s Dagong Global Credit Rating Company, downgraded their rating of U.S. Debt and warned of future cuts.

Given the fact that China is the largest holder of U.S. Debts (despite its selling off of U.S. Securities since the first of the year) this news compounded  by the fact that more rating agencies have downgraded U.S. Debt outlook should be setting off alarm bells all throughout Washington.

Who will finance Obama’s proposed $9.5 Trillion Dollars of New Debt over the next 10 years?

Related: Keynesian Economics Fails Again–How Supply Side Economics Can Save America

This entry was posted on Monday, April 18th, 2011 at 6:53 pm and is filed under Barack Obama, China, Economy, Socialism. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “Dow Drops 140 Pts as S&P Downgrades U.S. Debt Outlook”

  1. muck says:
    April 18, 2011 at 8:33 pm

    It’s kind of a big deal. The interest on the national debt is growing, and is becoming a larger and larger share of the budget. If interest rates rise, so does the amount of interest.

    (Remember what happened to home owners just a few years ago with their loans????!?!?!??!)

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    April 20, 2011 at 8:06 am

    […] Monday I wrote here that the federal debt should be sending off alarm bells around Washington, presently China (our […]

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