U.S. Loses AAA Credit Rating as S&P Slams Debt

http://www.bloomberg.com/news/2011-08-06/u-s-credit-rating-cut-by-s-p-for-first-time-on-deficit-reduction-accord.html

Standard & Poor’s downgraded the U.S.’s AAA credit rating for the first time, slamming the nation’s political process and criticizing lawmakers for failing to cut spending or raise revenue enough to reduce record budget deficits.


 Even with the specter of a downgrade, demand for Treasuries surged as investors saw few alternatives amid concern global growth is slowing and Europe’s sovereign debt crisis is spreading.


SAMEER SAYS


DEMAND FOR US TSY SURGED
THIS IS EXACTLY AS I HAD SAID
SHORT TERM US T BILLS AND CASH ARE THE ONLY VIABLE ALTERNATIVES
US T BILL YIELDS ARE AT ALL TIME LOWS AND I THINK THEY ARE GOING TO STAY LOW 


Asian investors are likely to retain their Treasuries holdings for now, with options limited by the region’s foreign- exchange rate policies.Japan, the second-largest international investor in American government debt, sees no problem with trust in the securities, a Japanese government official said on condition of anonymity. Russia said the one-step cut “can be ignored.”


SAMEER SAYS
READ THE ABOVE STATEMENT
SOME PEOPLE MIGHT SAY THAT THIS IS ABSURD
I DONT THINK SO
THIS IS EXACTLY HOW IT IS SUPPOSED TO HAPPEN
US T BILLS AND SWISS T BILLS ALONG WITH PURE CASH ARE THE ONLY 3 OPTIONS


I THINK THIS IS A BIG SLAP IN THE FACE OF ALL THOSE IDIOTS WHO WERE GIVING THE HYPER INFLATION ARGUMENT


THIS BEHAVIOUR OF FINDING SOLACE IN US T BILLS IS A CLEAR SIGN OF DEFLATION SCARE


AND MY DEAR FRIENDS - WE ARE ABOUT TO SEE  WHOLE SCALE GLOBAL DEFLATION 
THE WEST WILL SUFFER THE MOST 
IT IS INEVITABLE
THERE IS NO OTHER WAY OUT

Policy makers from China to Japan to Southeast Asia are lured to Treasuries as a result of efforts to stem gains in their currencies against the dollar, which would impair export competitiveness. China has accumulated $1.16 trillion in the securities and the nation’s official Xinhua News Agency said in a commentary that the U.S. must cure its “addiction” to borrowing.

“They won’t be happy about it, but Asian central banks will just have to hold on and stick it out,” said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney. “There is pressure on them to hold on to liquid assets and there is nothing more liquid than the Treasury market. At least Treasuries have been doing well and they aren’t holding on to distressed assets.”

SAMEER SAYS

I THINK THE BOND FUND MANAGER OF ONE OF THE LARGEST BOND FUND IN THE WORLD - WHO SAID THAT HE WAS SHORT US TSY - NOW LOOKS TO HAVE MADE A BIG LOSS - AS YIELDS COLLAPSED AND BOND PRICES SURGED

I HAD MADE A POST EARLIER SAYING THAT HE WAS MAKING A MISTAKE TO TAKE THE PATH OF THE HYPER INFLATION ROUTE

DEFLATION HAS ALREADY BEGUN AND IT IS APPROACHING STEP BY STEP - ONE STEP AT A TIME - WE WILL SEEE MANY CASUALTIES ALONG THE WAY - BY THE END OF WHICH - I THINK THAT WILL BE IN 2016 OR SO - A LOT OF MILLIONAIRES AND BILLIONAIRES WILL HAVE LOST A LOT OF MONEY\

I CALL UPON THEM TO PLS WAKE UP AND TRY TO UNDERSTAND WHAT IS REALLY GOING ON HERE -

GET INTO CASH

REAL CASH IN THE VAULT AND NOT IN THE BANK - AS MANY BANKS ARE AGAIN ABOUT TO GO BANKRUPT IN THE COMING 4 YEARS

Investors from China to the U.K. are lending money to the U.S. government for a decade at the lowest rates of the year. For many of them, there are few alternatives outside the U.S., no matter what its credit rating.

“Yields are low in the face of a downgrade because there is nowhere else for people to go if they don’t buy Treasuries because they want to be in safe dollar assets,” Carl Lantz, head of interest-rate strategy at Credit Suisse Group AG, one of 20 primary dealers that trade directly with the Fed, said before the announcement.