19
April
Gold soars, markets tumble as US warned it could lose AAA crown
19 April 2011 The Telegraph
The rating agency cut its outlook on the US from stable to negative in a powerful shot across the bows of politicians in Washington who have recently struggled to reach agreement both on short-term measures to keep the government running as well as a long-term plan to balance the budget for the first time since 2001.
Congress and The White House need to have begun "meaningful implementation" of a strategy to tackle the deficit by 2013 to preserve its status as a top borrower, S&P said. A sharp drop in tax revenues during the recession has seen America's national debt balloon from about 40pc of gross domestic product (GDP) before the crisis to more than 60pc last year. S&P said on Monday that it expects that figure to reach 84pc in 2013.
