Fitch: Debt Ceiling 'Brinkmanship' Threatens U.S.

https://www.cnbc.com/2017/08/23/fitch-us-aaa-rating-at-risk-if-debt-ceiling-not-raised.html
>in a statement that the prioritization of debt service payments over other government obligations, should the debt ceiling not be raised, "may not be compatible with 'AAA' status."
>The United States defaulting on its bonds, traders fear, would rattle financial markets worldwide.
>During the debt ceiling showdown in August 2011, Standard & Poor's stripped the United States of its highest rating.
>If either Fitch or Moody's were to follow S&P's downgrade, it could roil financial markets as investors reassess the creditworthiness of U.S. Treasuries.
>Immediately after S&P's downgrade six years ago, the Treasuries market rallied, sending yields lower.
>U.S. Treasury benchmark yields fell to session lows in the wake of Fitch's view on its U.S. rating.

>>3204474
hasnt the US had its credit rating downgraded before, just after 2008?

whatever happened after the downgrade back then will probably occur again. short USD currency pairs along with the USD index or w/e its called im guessing

>>3204508
Yes, see what I posted it talks about that.

https://en.wikipedia.org/wiki/United_States_federal_government_credit-rating_downgrades
>Some lenders also have contractual requirements only to hold debt above a certain credit rating.
>Market consequences
>Global stock markets declined on August 8, 2011, following the announcement. All three major U.S. stock indexes declined between five and seven percent in one day.
>However, U.S. treasury bonds, which had been the subject of the downgrade, actually rose in price and the dollar gained in value against the Euro and the British pound, indicating a general flight to safe assets amid concerns about a European debt crisis.

(btw, it appears whoever wrote these doesn't know that bond price and it's yield have inverse relationship.)

https://en.wikipedia.org/wiki/United_States_debt-ceiling_crisis_of_2011
>The crisis sparked the most volatile week for financial markets since the 2008 crisis, with the stock market trending significantly downward. Prices of government bonds ("Treasuries"), rose as investors, anxious over the dismal prospects of the US economic future and the ongoing European sovereign-debt crisis, fled into the still-perceived relative safety of US government bonds.
>Obama administration stated that, without this increase, the US would enter sovereign default (failure to pay the interest and/or principal of US treasury securities on time) thereby creating an international crisis in the financial markets.
>US reaction
>The NASDAQ, ASX, and S&P 100 lost up to four percent in value, the largest drop since July 2009, during the global financial crisis
>The commodities market also took losses, with average spot crude oil prices falling below $US86 a barrel.
>The price of gold fell, as deepening losses on Wall Street prompted investors to sell.
>International reaction
>China, the largest foreign holder of United States debt, said that Washington needed to "cure its addiction to debts" and "live within its means". The official Xinhua News Agency was critical of the US government, questioned whether the US dollar should continue to be the global reserve currency, and called for international supervision over the issue of US dollar.
>The downgrade started a sell-off in every major stock market index around the world, threatening a stock market crash in the international markets. The G7 finance ministers scheduled a meeting to discuss the "global financial crisis that concerns all countries."

There are rumors of negative interest rates. Think about that.

https://www.nytimes.com/reuters/2017/08/24/business/24reuters-usa-moody-s-debtceiling.html?mcubz=3
>Moody's Ties U.S.'s Top-Notch Rating to Debt Payments
>Moody's Investors Service said on Thursday it would consider stripping the United States of its top-notch rating in the event of a default
>The rating agency's warning about a possible U.S. downgrade seemed less dire and narrower in scope than that of rival Fitch Ratings