In the news

Balki (I think) is saying this: if interest paid on bonds goes up (the interest the US pays to borrow money, not the interest the fed sets) . . .

If interest goes up, do taxes (eventually) go up as someone needs to service the debt and the US citizens are the only one's with money, the government has none of it's own, the fact that over half the debt is held by the US itself further mashes shit up . . ? ? ?

. . and you have faith that the US government won't default (ultimately, if you have faith in the USD as a currency). . .

If the lowering of the credit rating is an indication of anything it's an indication of an increase in the likelihood of a default (however still unlikely) ?

you could see the USD become more desirable.

Should the UK campaign (or otherwise engineer) to lower it's credit rating to also enjoy these benefits ?

Maybe you got this already and there is something more subtle which you're trying to hash out.

911 was a inside job ?

I am trying to see (which I currently can't make) why the downgrading on the US' credit rating is a good thing, from what you are Balki are saying it is (or in the right circumstances can be).

But that has me wondering why this is presented as bad news, why the White House vociferously lobbied against it and why other countries aren't actively campaigning to head for the low Cs ?