In his latest subscribers-only newsletter, veteran market analyst Porter Stansberry describes a U.S. sovereign debt downgrade as “inevitable”. JWR’s comments: Make your plans with the assumption that there will be a rating downgrade by all of the credit ratings agencies. The current AAA rating for U.S. paper is just a convenient fiction. Obviously a debt downgrade will mean higher interest rates. This will in turn ratchet down the U.S. economy in general and the residential and commercial real estate markets in particular. This will delay any recovery for many years. Plan on a riding through a depression that could last for decades!
John R. recommended this commentary by Jim Quinn: This Country Defaulted Long Ago
KAF sent this: Downgrade Day: What It Will Look Like
US Army proposes new retirement plan. (Would “save” $400 Billion, by breaking promises made for generations.)
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