On October 3rd, Christine LaGarde and the International Monetary Fund voiced doubts as to the long-term market viability of the United States. This event, and a few others, might be warning signs that the credit rating of the US as a whole might be about to drop.
USA Credit Crash – What Are The Warning Signs?- Video Transcription
Coy Wells: 00:00
For those of you who've been watching this series over the course of the past six months, there was a key element that took place on October 3rd and that was when Christina LaGarde and the International Monetary Fund came out and made specific remarks in regards to the United States and its viability long term. Now we're starting to see some ripple effects of that coming out now. On January 9th we saw the Fitch rating company come out and say, they're talking about downgrading the United States from a AAA. Okay? This is huge for any consumer to understand. We're talking about downgrading the United States. One of the largest economies in the entire world and downgrading its credit rating. The credit rating for a country is no different than a credit rating for an individual. The second phase of this is that Standard Chartered reporting came out on the 11th okay? This is a big bank that goes out and they analyze all the information globally and their economic stance.
Coy Wells: 00:52
They're talking about the United States. By the end of 2019 going into the year of 2020 the United States, based on current data and the information they've collected, which is- they're a huge organization so we're not doubting their information. They're talking about the United States losing its status as the world's largest economy. Most consumers that are out there understand that China has been a threat to the United States for many years and we also know that China is currently holding a ton of treasury bonds and we've talked about the threat of treasury bonds coming back to the United States and it being an overall impact to us overall. We also know that China has been a threat to the United States for years in regards to an economic standpoint or from an economic standpoint. This is also critical to understand. There are moving parts outside of the United States that are now critical to us inside the United States.
Coy Wells: 01:42
Those of us who understand what's happening and what's happened in just the past few months have to understand that stock markets continuing to maintain. That's not a norm. You can't have this type of information, this type of data that's available to us readily. Most of us have a computer or have an iPhone where we can look this information up. To have this information readily available at our fingertips and not have a stock market reacting accordingly to it, should be a bigger concern. And these are the warning signs that we're trying to stress to consumers that are out there. Uh, me and Mr. Patrick Brunson spoke last week. We talk specifically about the banks buying gold. It is important to understand that when banks start transitioning out of paper assets and alternative and go to alternative assets, it's another key indicator that they are also worried. It's the same information when we saw the secretary of treasury stretch out and go behind with the Federal Reserve and question the liquidity of the banks. As always, thanks for watching US money reserve market insights. And our latest report, 25 reasons to own gold by Phillip N Diehl, 35th director of the United States mint and a lot of the information we've discussed today will also be in this report. And if you're watching on Youtube, make sure you subscribe that way you don't miss a single episode. As always, I'm coy wells with us money reserve's market insights.