Tim Geithner is brushing off concerns that the US will lose its AAA rating. Bond king Bill Gross, meanwhile, tells Bloomberg that a downgrade is inevitable.
- The US and UK have “prospective deficits of 10% annually as far as the eye can see”
- Both countries are seeing an alarming rise in debt-to-GDP. “At some point they may approach 100% of debt-to-GDP, which is a level at which downgrades tend to occur.”
So where the heck do you put your money? Countries with “hard money” currencies like Germany, and companies that aren’t destroying their currencies with massive quantitative easing plans.
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