WASHINGTON: For the first time, a top credit ratings agency has seriously hinted the United States might be forced to welch on its debts, a warning experts say could herald dramatic changes for the country and the world.
In the world of credit a "AAA" rating is a gold star of approval. Those countries and businesses that have it can borrow extraordinarily cheaply, those who don't, can't.
So when ratings agency Standard & Poor's on Monday warned the United States has a one-in-three chance of losing its gold star in the next two years, it came as a bit of a shock to the system.
The announcement was "like a gas explosion in a mine," according to Gregori Volokhine, an analyst at Meeschaert Capital Markets.
The impact was immediately seen on stock, bond and currency markets, but the most profound impact may ........................
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