But since the advernt of the Euro, the dollar has lost one of its main reasons for people to support it. If Saddam had been allowed to exercise Iraq’s sovereign right to price oil in Euros, America would have lost another reason. The third reason is the Pentagon, but the US can only bully small nations. Up against a major power, there would be no winners.
Now, credit agencies have downgraded Ford and GM (by some measures, America’s largest company). Warren Buffett’s Berkshire Hathaway has also been downgraded. The excuse is Buffett’s age of 74 with his partner being 81. Berkshire shares are no doubt selling at a premium because of the duo’s performance and replacements for them are not on the cards.
However, there is another explanation which would bring these anecdotes together. Since companies rarely have a higher rating than their host country, the downgrades could well be in preparation for downgrading the US of A. It certainly wouldn’t be before time!!!!