US loses AAA credit rating

Too right...could really be the start of something very bad...this week was chaos on the markets

 

This a very good guide on how it could effect the wider world.
http://abcnews.go.com/Business/sp-drops-us-credit-rating-aa-easy-understand/story?id=14244259

 

remember when they downgraded ireland last year or the year before from the same level, we were the laughing stock. its happened to the biggest economy of all now.
the sh1t is gonna hit the fan!

 

All very confusing The biggest economy in the world pays $250bn per year in interest, to who????? Who do Spain, Italy, Ireland, UK etc owe all this money too?????? If every country has a massive national debt then who is on the other side of the balance sheet?????????

 

I know that the USA have to pay the money to the chinese, as they loaned them a bucket load of money a while back.

 

Im guessing its about military alliances.

 

Doesn't matter, rating agencies caught with their pants down in 2008 so now trying to show their importance.

Bottle jobs wouldn't even do it during the working week.

Best of all treasuries could rally even with a downgrade, bizarre.

 

and the U.S tax payer at one stage had to pay for the U.S army builing roads and bridges in middle east countries like Iraq.

wtf like

 

another rivot in the hull of the ship pops

 

they owe like 15 trillion.they have always been a creditor apart from ww1 when they made a fortune on exports. they did reduce it but bush and his war drove it up big time

 

Scepter and Crown come tumbling down and in the dust are equal made .( quote)

 

this is a question id like answered too

Every country has massive debt, to who exactly?? Is there a small group of individuals that basically control the monetary flow of the entire planet,

Would it be feasible for every world country to turn around and say right im not paying my debt but in turn i dont want any debts repaid and lets all start from scratch with our own currencies

Or is that just me having a sh1te idea

 

i think the chinese are a big world debtor.small countries lend sums to the us because they have a good credit rating and they are 'sure' to be repaid and make a small gain.the amount of countries America owes could run into 10 or 20.

 

i think india russia and germany are also lending big sums of money

 

All that Market stuff is very confusing I don't understand any of it like the lads said earlier who dose everyone owe money to

 

Im hammered so I'll try my best at this....
Basically they all borrow from each other.
If a country needs extra funds for a war or for development etc. it cant just print the money, it needs to borrow it. It borrows from investors, other governments/countries, pension funds, corporations or even (just to wreck your head some more) it borrows from itself.
For example:US healthcare system might want to invest some of its money... what better place than the US government? Guaranteed to be paid back, right?

The easiest way to explain it is:
Bobby, Captain and Glen all have €100b each. (€300b =money in circulation)
Bobby decides to go to war on semifortorres and needs to borrow €50b from the Captain.
Cptn Morgan is overstocked on Club Orange and needs to borrow €25b from Glen to ensure his rummy drinks will keep him suitably 'buzzed' for the foresee-able future.
Glen has discovered some autographed Glee paraphanalia on Ebay and needs to borrow €10b (from Bobby who is now minted) to "Buy it Now"

Why do they need to borrow?... because their other cash is already tied up elsewhere (porn site subscriptions, Thai-Brides.com etc)
Why do they lend? ... because they will make money from the interest.(or so they think)
Whats the problem?...Stick 10% interest on the loans and you have €85b being borrowed but €93.5b being owed.
So where is the extra €8.5b going to come from?
The other cash they all have is tied up.. so they are all in debt.... so they borrow more... and become more in debt ...etc etc etc

Captain Morgan wants to wipe the debt and start fresh because he knows he will never be able to clear his bar tab but this would set a precedent for any future loans: Why would anyone pay back a loan if they could just wait until market collapse and wipe the slate?O

On a serious note, this is not as exciting as Bird flu or global warming, but it could be fcukin huge. The news reports are vague and uninteresting because nobody really knows what will happen next.....but as crazy as it sounds, we are certainly moving closer to a 'one world currency'.