From the FINANCIAL TIMES:
Germany and the eurozone’s five other triple A members face having their top-notch ratings downgraded after Standard & Poor’s put 15 countries in the single currency bloc on negative credit watch.
The US rating agency has warned that eurozone nations including Germany, France, Austria, Finland,Netherlands and Luxembourg were under review – meaning they have a one in two chance of a downgrade within 90 days. However, S&P said it expected to conclude its review “as soon as possible” following this week’s summit of EU leaders on Friday.
It warned all of the six triple A rated governments that their ratings could be lowered to AA+ if the creditwatch review failed to convince its experts. Markets have been braced for a potential downgrade of France, but few expected Germany’s top rating to be called into question…
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EDITOR: More and more we are coming to believe that our initial thinking that some nations need to go off the euro and return to their own currencies was correct. That way trade and fiscal imbalances can be resolved through the devaluation of currencies. This may be the only way to save the economies of Europe and avoid a depression there and possibly here in the USA. Their suggested approach of austerity followed by still more austerity, all of which further shrinks the economy and worsens the situation, is the formula for ruin and possibly revolution.
