U.S. runs the risk of getting a step on his reputation as a payer of debt. Happened, interest rates will increase for the government, credit card and finance. Domino effect and the gold rush
Financial markets now fear serious risk that agencies note down the U.S. debt. A decision that would shake the world as the world's largest economy has the AAA for almost a century.
Barack Obama called on the opposition to agree to raise the debt limit, he knows what's coming. "Our growing debt can cause serious damage to the economy. We run the risk of an economic crisis, this time all from here in Washington," Bush said.
"Raising interest rates charged by credit cards, mortgages, credit cars, what a huge tax signficia for Americans," he said Obama.
Otherwise lawmakers agree the government did not have the funds to meet its obligations from August 2. The three major ratings agencies (Moody's, S & P and Fitch) shuffled in the U.S. to declare default.
The U.S. debt is key to the financial world. First, because it amounts to U.S. $ 14.3 billion in the hands of other governments, institutional investors and individuals. According to Reuters, the rate of 10-year bond could rise from 3% to 3.5 percent.
This would impact on the U.S. private debt amounting to U.S. $ 34 billion. Credit is the engine of consumption, which accounts for 70% (U.S. $ 10 billion) of total GDP of the country. Lower demand for products and services by the rise in lending rates would slow the recovery of an economy that still pays the costs of financial crisis of 2008-2009.
Other countries hope that the discussion is over once and in Washington. China, England, Japan and Brazil are the main holders of Treasuries in the reserves of central banks. The South American country has more than 50% of its holdings in U.S. debt.
And finally, the Treasury bond U.S. is the safest investment instrument on the planet ("risk free", hence the AAA. Their degradation and subsequent default would lead to a world run into other safe instruments, such as metals . In gold and feel. An ounce broke the record of U.S. $ 1600 and to have no ceiling.
The infection may be Wall Street, causing a wave of stock sales, the loss in value of the dollar and that they debase notes rating banks, insurers and other financial institutions.
Moody's said the note of 7,000 municipalities in the U.S. could also drop a rung. Many U.S. businesses not related to the financial sector, the country lost its top rating would suffer the same blow. Mayors and CEO should allocate more money to take on debt because it paid higher interest rates.
Agencies do not rule out a domino effect on other nations to enjoy the three golden letters. Canada, England, Australia, Austria, France, Sweden, Switzerland, Denmark, Finland, Norway, Luxembourg, the Netherlands are the other members of this select club. The United Kingdom, according to Moody's predicted may be the next to be degraded.
Of the three rating agencies, S & P-US-origin, could be the first to make the historic step and get the AAA to the U.S.. Moody's and Fitch, as they usually do, perhaps to follow, but not immediately. Everything is in the hands of Republicans and Democrats.
Financial markets now fear serious risk that agencies note down the U.S. debt. A decision that would shake the world as the world's largest economy has the AAA for almost a century.
Barack Obama called on the opposition to agree to raise the debt limit, he knows what's coming. "Our growing debt can cause serious damage to the economy. We run the risk of an economic crisis, this time all from here in Washington," Bush said.
"Raising interest rates charged by credit cards, mortgages, credit cars, what a huge tax signficia for Americans," he said Obama.
Otherwise lawmakers agree the government did not have the funds to meet its obligations from August 2. The three major ratings agencies (Moody's, S & P and Fitch) shuffled in the U.S. to declare default.
The U.S. debt is key to the financial world. First, because it amounts to U.S. $ 14.3 billion in the hands of other governments, institutional investors and individuals. According to Reuters, the rate of 10-year bond could rise from 3% to 3.5 percent.
This would impact on the U.S. private debt amounting to U.S. $ 34 billion. Credit is the engine of consumption, which accounts for 70% (U.S. $ 10 billion) of total GDP of the country. Lower demand for products and services by the rise in lending rates would slow the recovery of an economy that still pays the costs of financial crisis of 2008-2009.
Other countries hope that the discussion is over once and in Washington. China, England, Japan and Brazil are the main holders of Treasuries in the reserves of central banks. The South American country has more than 50% of its holdings in U.S. debt.
And finally, the Treasury bond U.S. is the safest investment instrument on the planet ("risk free", hence the AAA. Their degradation and subsequent default would lead to a world run into other safe instruments, such as metals . In gold and feel. An ounce broke the record of U.S. $ 1600 and to have no ceiling.
The infection may be Wall Street, causing a wave of stock sales, the loss in value of the dollar and that they debase notes rating banks, insurers and other financial institutions.
Moody's said the note of 7,000 municipalities in the U.S. could also drop a rung. Many U.S. businesses not related to the financial sector, the country lost its top rating would suffer the same blow. Mayors and CEO should allocate more money to take on debt because it paid higher interest rates.
Agencies do not rule out a domino effect on other nations to enjoy the three golden letters. Canada, England, Australia, Austria, France, Sweden, Switzerland, Denmark, Finland, Norway, Luxembourg, the Netherlands are the other members of this select club. The United Kingdom, according to Moody's predicted may be the next to be degraded.
Of the three rating agencies, S & P-US-origin, could be the first to make the historic step and get the AAA to the U.S.. Moody's and Fitch, as they usually do, perhaps to follow, but not immediately. Everything is in the hands of Republicans and Democrats.
