Friday, May 22, 2009

Dollar falls as Britain rating downgraded, fears US may be next

May 22 (Bloomberg) -- The dollar fell to a four-month low against the euro and dropped versus the yen on speculation the U.S. government's creditworthiness is weakening, sapping demand for the greenback. ... http://bloomberg.com/apps/news?pid=20601087&sid=a7sB2fmVON5E&refer=home

Since 1978, when such ratings began, Britain has been awarded an immaculate AAA – the mark of a healthy, leading world economy. That golden run could come ...

http://www.telegraph.co.uk/finance/comment/edmundconway/5363790/Labour-must-go-if-the-economy-is-to-be-saved.html

May 21 (Bloomberg) -- The odds on the dollar, Treasury bonds and the U.S. government's AAA grade all heading for the dumpster are shortening.

While currency forecasting is a mug's game and bond yields can't quite decide whether to dive toward deflation or surge in anticipation of inflation, every time I think about that credit rating, I hear what Agent Smith in the "Matrix" movies called "the sound of inevitability."