MidnightWatcher – Prophecy in Motion

“WASHINGTON (AP) — President Barack Obama on Monday essentially dismissed the first-ever downgrade of the U.S. credit rating, trying to reassure investors and the public that the nation’s leaders need only show more ‘common sense and compromise’ to tame a staggering accumulation of debt.

Seeking to demonstrate command in a volatile economic climate, Obama said he hoped the decision by Standard & Poor’s would at least give Congress a renewed sense of urgency to tackle debt problems. He said that must be done mainly by taking on the politically difficult issues of reforming taxes and entitlement programs in the coming months.

In his first public comments on the credit downgrade, which S&P announced late Friday, Obama said Washington had the power to fix its own political dysfunction.

‘Markets will rise and fall,’ he said. ‘But this is the United States of America. No matter what some agency may say, we’ve always been and always will be a triple-A country.'” Read more.

U.S. downgrade hits world stocks as investors flee – “The fallout from Standard & Poor’s downgrade of the United States pushed world stocks to their lowest level in nearly a year on Monday and drove investors to the safety of gold and bonds. Strange as it may be, investors sought shelter in the asset that was downgraded — choosing U.S. government bonds for their liquidity and perceived high quality. Investors shunned stocks and commodities, struggling to discern the effects of the downgrade, which could hit various components of the financial sector, from mortgage lenders to municipal issuers and insurers.” Read more.

Dollar to Be ‘Discarded’ by World: China Rating Agency – “The man who leads one of China’s top rating agencies says the greenback’s status as the world’s reserve currency is set to wane as the world’s most powerful policy makers convene to examine the implication of S&P’s decision to strip the United States of its triple ‘A’ rating. n comments emailed to CNBC, Guan Jianzhong, chairman of Dagong Global Credit Rating, said the currency is ‘gradually discarded by the world,’ and the ‘process will be irreversible.'” Read more.