For followers of this blog the following news will come as no surprise. Today, Standard & Poor’s downgraded the credit forecast for the US to negative. In other words, the future is not that bright and shining. S&P gives a one in three chance that they will remove the US AAA ratings in the next 2 years. They site, Because the U.S. has, relative to its AAA peers, what we consider to be very large budget deficits and rising government indebtedness and the path to addressing these is not clear to us, we have revised our outlook on the long-term rating to negative from stable.
The US benefits greatly on its ability to borrow at reduced rates, while also having a higher limit than most other countries. Should the rating be downgraded its effects on our economy would be devastating, most likely pushing the US into a full on Depression. Yes, similar if not worse than the one experienced in the 1930’s. Congress faces crushing debt like no other time in our history. The choices made in the following weeks & months will determine the financial viability of nation & our way of life.
S&P global head of sovereign and international public finance ratings, David Beers told Bloomberg TV, This debate in the country really is just beginning and hard choices are going to have to be made. Beers went on further, We’re not saying that no agreement is possible. We’re just unsure as to the time frame and whether it’s going to be seen as credible not just by us but by the broader marketplace. It is time for partisan politics to cease and fiscal responsibility to start, not as Democrats or Republicans but as Americans.
While every citizen should call, write, & email there representatives demanding they resolve this financial debacle, everyone should add to or start investing into a Tangible Asset Portfolio (TAP) of rare coins & precious metals. A TAP will allow you to hedge against financial ruin should Congress not resolve this issue in a timely manner. Don’t rely on Congress to fix this mess, take your financial future into your own hands today. Invest conservatively 10% to aggressively 20% in your personal TAP. Remember: Procrastination gives birth to future regret!