Pile on enough debt to the U.S. economy, and boom, suddenly our much-prided AAA credit rating is jeopardized.

Reuters reports:

“Signs are abound that we are in even worse shape now, and that confidence in America’s ability to gain control of its finances is eroding,” the former comptroller general and current chief executive of Peter G. Peterson Foundation, wrote…

If only credit ratings had any credibility.  Imagine the chain reaction set off worldwide if there is indeed a massive sell-off in treasuries as a result of a potential downgrade.  I would guess that the United States would remain the benchmark borrowers for the rest of the world, thus this would raise yields for all borrowers.

Link here.