Credit Rating Dropped

Do you want some more foreshadowing? Portugal got it's credit rating dropped from AA to AA-

See it here; http://www.marketwatch.com/story/fitch-downgrades-portugal-to-aa-2010-03-24?reflink=MW_news_stmp

Some will say, "What does that have to do with anything?"

Think about a guy who owed $50,000 and had an agreement with the bank to pay 5% interest per year and then pay the entire $50,000 back at the end of 20 years.

He would pay $2500 per year in interest.

Now let's assume that the bank said, "As long as you stay at a AA rating, we will leave your interest rate at 5%....but as soon as your credit rating drops, the interest rate will rise to 10%."

At that rate the guy would owe $5,000 per year in interest.

To further add insult to injury...let's assume that the guy had been setting aside an extra $200 per month (when his interest rate was at 5%) in order to pay back the $50,000 that is due at the end of the 20 years.

We can now see that without seriously altering this man's plans...he will have no way to pay back the $50,000 and also will find it increasingly hard simply to meet interest payments.

Now paste that scenario onto the USA and plug those numbers into $11,000,000,000 (trillion) and you will understand why so many Americans are coming to the conclusion that the collapse of the USA is not impossible.