United States Slowing Loosing their Grip

The credit rating agency Standard & Poor's has stripped the US of its top-notch AAA credit rating, downgrading it to AA+ in August of 2011. The United States will probably suffer another loss of its once triple-A credit rating from an additional rating agency by the end of this year.

This seems likely because the bipartisan congressional committee formed to address the deficit (known as the "super committee") failed to agree on a plan to reduce the deficit. By November 23, $1.2 trillion is automatic going to be cut for the spending budget, mostly discretionary spending will be triggered, beginning in 2013, which would negatively impact the already fragile U.S. economy, says Merrill. The bank also cut its 2012 and 2013 U.S. GDP forecast to 1.8% to 1.4% respectively. Merrill's North American economist, Ethan Harris, said. "We expect at least one credit downgrade in late November or early December when the super committee crashes."

As to which agency would hand down the next downgrade , Moody's looks good for now, since Fitch still has a stable outlook on its AA+ rating on the United States, which suggests it is more likely to revise to negative outlook before the actual downgrade. Moody's, on the other hand, already has a negative outlook on the United State's once AAA+ rating, and indicated that failure by the committee to come up with an agreement "would be negative information" and result in another downgrade. And then they will be only at A+, the United States has to pick up their game or maybe the once UNI-polar power is slowly loosing grip on the top of the world.