29-July-2011

debt_ceiling

S&P Credit Ratings for G-20 Domestic Debt

AAA Rating: Canada, Australia, France Germany, UK, US

AA+ Rating and AA Rating: None

AA– Rating: China, Japan, Saudi Arabia

A+ Rating: Italy, S. Korea; BBB+ Rating: Russia

+ One or more of the 3 agencies may downgrade the US debt to AA+.

+ Over the past 20 years, developed nations, including Australia, Canada and Japan, have been downgraded from AAA nine times.

Tidbits

+ Canada’s May GDP declined 0.3%; gas extraction down by 4.2% due to wild fires in Alberta.

+ US Q2 GDP rose 1.3%, lower than forecast. Q1 revised to 0.4% from 1.9%.

+ US consumer spending decelerated to 0.1%, weakest in 2 years.

+ US has pressured the Reserve Bank of India to stop allowing payments to Iran. They owe Iran $5 billion for crude oil purchases since April. Iran is threatening to suspend exports.

+ China could be potential buyer for Iran’s crude and India will get crude from Saudi Arabia.

+ Surplus housing fix – Bank of America will donate then demolish 100 houses in the Cleveland area. Other cities to follow.