In the news

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 . . ? ? ?

Yes. As the cost of repayments go up, things are fiscally worse for the US government. Taxes or cuts need to be made to make up the difference.

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) ?

Of course. But we're not dealing in absolutes. Look at some of the other countries with an AA+ rating. Not exactly lost causes.

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

What benefits?

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 ?

No one said it was a good thing. The question, which you yourself quote, was "will the downgrade of their debt status make dollars more or less desirable." Balki was explaining that it could make it more desirable for some. The US is opposed to it because it rocks faith in the US economy and could lead to government loans costing more money. That "more money" goes somewhere, and for them (those who get the "more money") it is desirable to own that US debt (which is in US dollars).