The U.S. Is Not Bankrupt, but Has Received a Warning

Once again, it appears to be one of the allegedly evil ratings agencies that is threatening to plunge financial markets worldwide into turmoil. But is the downgrade of the U.S. really that surprising? No. Anyone can check the few hopeful pieces of U.S. economic data.

Nevertheless, it is true: The U.S. is not bankrupt. But they have received a warning shot. Evidence remains that the U.S., as well as Europe, are skating on thin ice. There is no intelligent and coherent policy. The ineffable political style on the Potomac and the weak leadership skills of the president are just as untrustworthy as Europe’s many cheeky remarks or unproductive accusations that are colored with nationalistic undertones.

A new era is now beginning. American government securities are no longer the automatic safe havens that they have been for decades. The financial system will slowly readjust itself. There is still no alternative — except Europe, when it is able to get going again.