Downgrade of the U.S., what does it mean for the country?

What does it mean for a country to have an AA rating? The answer to this question depends on that to which you are concerned. From an economic perspective, if you are concerned that this rating ruin the economic situation of a country, you can rest easy for now. Traders and economists generally agree that the impact on U.S. government borrowing rates will be manageable. The main issues, namely an increase in borrowing costs for the United States, the posting of Global Treasury, the decline in the stock market, all are little affected by the downgrade.



This is not a reason to celebrate. Standard & Poor's has made this move for two main reasons. First, the situation that has arisen in discussions about the U.S. government debt, pursued by politicians in a way that many Americans called "comedy" was so surprising that S & P has lost faith in Washington in ability to make tough decisions quickly on spending and taxes.



Secondly, there are several things that make you think they think that S & P does not believe that tax cuts will be sufficient.



If you are concerned about the global position of the United States, the country's prestige as a world leader, in this case you should feel quite worried. This downgrade is mainly a vote of no confidence in the American political system. Weakens the country's ability to influence their allies and trading partners, and damages efforts to prove the superiority of democracy and capitalism on a global level.



This is a profoundly serious. The center of American politics is collapsing, so the ability to address the serious structural and economic problems is one thing that now must prove he can do.