You Ain't Seen Nothing Yet

Submitted by Barry Black (United States), Aug 10, 2011 at 17:54

The drop in rating from AAA to AA+ is more politics than economics. The stock market will reel for a week or two and then stabilize and begin it's climb to assuage the fearful. The more important aspect was the Federal Reserve stating that it will keep the prime rate at it current very low value for the next two years. This will doom the USA to an inflationary cycle that will rival Carter's. As a side note, there are certain segments of business, industry, and the financial community that wouldn't mind a period of inflation.

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