The credit rate downgrade of the United States is the latest that the GLOBAL CRISIS which erupted last 2008 was not yet resolved. The US markets continue to fall despite Obama's calming words.
This is the United States of America. No matter what some agency says, we will always be a triple A country.-Barack Obama
President Barack Obama blamed the Tea Party Republicans for losing the Triple A status of the US. The crisis will have a big impact on our country, the Republic of Philippines. We will have weaker remittances, lower exports, and more problematic investments. As of now, the USD is decreasing vs. the PHP.
The problem of the United States is not just in immediate financial terms but rather it shows how deep the long-term obstacles are. They are all facing slowing growth due to public debt troubles, austerity, high unemployment and the lack of productive domestic investment opportunities- same as the woes in the philippines.
All is not well for the world economy and this is the single most important economic feature in the current world situation. The sooner the Philippines' economic directions are focused on building the domestic economy the better. Job creation and poverty reduction will not happen if the same failed globalization policies of previous administrations are retained. There must instead be more democratic income, asset and wealth reform and greater assertions of economic sovereignty in the country’s international trade and investment relations.-Sonny Africa
US President Obama announced an agreement reached early this week to cut about $1 trillion over 10 years so as not to drag the fragile US economy.
Earlier, Fitch Ratings said Philippine banks have enough “firepower” to survive the negative impact of the fragile economic growth in the US and the debt crisis in Europe.
The Bangko Sentral ng Pilipinas is confident that banks operating in the Philippines are well capitalized to survive the debt crisis being faced by the US in light of a responsible downgrade of its TRIPLE A credit rating despite an agreement reached by Democrat and Republican leaders to reduce its deficit and avoid default.
Growth remains not just imbalanced, but weak around the world. Economic activity is slowing and the risks are if anything increasing as the US downgrade, to take a particular instance, shows. The situation is still very fragile despite repeated claims in the last two years of the world having dealt with the crisis and now slowly, if unevenly, recovering.
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