Here’s a short clip that has Bill Gross talking about the possibility of a U.S. debt downgrade in the near future. A debt downgrade would increase the cost the U.S. has to pay to borrow money. It would also have a negative impact on the value of the dollar which would lead to inflation. I guess we’re going to have to pay for all this government spending somehow…
In the meantime, protect yourself by avoiding U.S. Treasuries like the plague. Look for quality dividend paying stocks that have significant overseas revenue. If the dollar continues to decline this will give these companies a currency exchange boost.
Hadn’t heard that Bill Gross had said this. Cannot imagine USA would lose its Triple A rating. What has the world come to? We are fast becoming a Third World Country. Watch out for hyperinflation coming down the pike…