Shocking news this morning from Standard & Poor's rating service, who just revised their outlook on United States government debt:
On April 18, 2011, Standard & Poor's Ratings Services affirmed its 'AAA' long-term and 'A-1+' short-term sovereign credit ratings on the United States of America and revised its outlook on the long-term rating to negative from stable.
The notion that America still carries a "AAA" rating (the best) is laughable at best. The debt should be rated junk, and it will be before this saga concludes.
This is the very first chink in the armor of the pristine credit rating of the United States. As we have seen with countless examples in history, when a bankrupt government's debt collapses (think Greece, Ireland, Portugal) it happens quickly and without warning.
It is impossible to know what will trigger the collapse of US debt, the only assurance is that the day is coming.
Stocks, bonds, and every asset across the board are getting destroyed on the S&P news.
Except gold and silver, which are exploding higher in early trading.