Marc Faber : the S&P basically downgraded a junk bond

"Marc Faber : ...SP basically downgraded a junk bond because it is no longer a triple A , a government bond has a triple A rating when it is willing to pay the interests in a stable currency we are not dealing in this particular case the US Dollar with a stable currency The rating agencies are looking backward and not forward , The US fiscal position is a disaster if you include non funded liabilities and some kind of default will occur , now there are two ways a government can default , it can default by not paying the interests and restructuring its debt as happened in Argentina and in other countries repeatedly , or it can repay the interests and the debt in a depreciated currency , all currencies all paper money are losing value in terms of their purchasing power and of course the Us Dolar is losing more of its purchasing power than other currencies..."

at http://marcfaberchannel.blogspot.com/2011/08/marc-faber-s-basically-downgraded-junk.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MarcFaberBlog+%28Marc+Faber+Blog%29