Another U.S. Downgrade Coming?

Remember that last summer the USA had it's debt downgraded a notch by Standard and Poor's.  Today there is talk of further downgrades.

Concerns over the size of United States debt reared their head once again as ratings agency Standard & Poor’s warned that health care costs for a number of highly-rated Group of 20 countries, including the U.S., could hurt growth prospects and harm their sovereign creditworthiness from the middle of this decade.

S&P downgraded the United States credit rating for the first time ever in August of last year.

"Governments' fiscal burdens will increase significantly over the coming decade, with the highest deterioration in public finances likely to occur in Europe and other advanced G-20 economies, such as Japan and the U.S.," S&P said in a statement on Tuesday.

"Population aging will lead to profound changes in economic growth prospects for countries around the world as governments work to build budgets to face ever greater age-related spending needs," said Standard & Poor's credit analyst Marko Mrsnik in the statement.

NOW PAY ATTENTION TO THESE NEXT COMMENTS!!

S&P's first downgrade has not driven up the United States’ borrowing costs and the dollar appreciated relative to other currencies in the months following the cut as investors sought out safe havens to escape the European debt crisis.

“The U.S. [dollar] is a reserve currency. It’s able to retain all the confidence of international investors,” Owen said.

Here;  http://www.cnbc.com/id/46202656

He's right of course when he says that money continued to flow into U.S. Treasury Bonds...because everyone was so freaked about Europe collapsing that they dove head first into the USA with their money....believing that the the USA is the "least worst" place to be.

But it's the last sentence that is so troubling.....the US dollar is able to RETAIN ALL THE CONFIDENCE?.....REALLY?!?!

That's like my friends in my financial office saying, "America will always be great."  When asked why they respond, "Because this is America!"

It's almost like the Western World is under a delusion....probably the same delusion that Rome, Greece, and Babylon were under when they once ruled the financial and military world....and the entire known world used their money as a reserve currency.

"Rome will always be great."  Why?  "Because this is Rome!"  And of course they didn't see their enemies gathering behind the hill and their bankers getting ready to flee with the little gold that was left.