GO
Loading...

Enter multiple symbols separated by commas

US May Lose Its 'AAA' Rating

The United States may be on course to lose its 'AAA' rating due to the large amount of debt it has accumulated, according to Martin Hennecke, senior manager of private clients at Tyche.

"The U.S. might really have to look at a default on the bankruptcy reorganization of the present financial system" and the bankruptcy of the government is not out of the realm of possibility, Hennecke said.

"In the United States there is already a funding crisis, and they will have to sell a lot more bonds next year to fund the bailout packages that have already been signed off," Hennecke told CNBC.

In order to solve or stem the economic slowdown, Hennecke suggested the US would have to radically reduce spending across all sectors and recall all its troops from around the world.

As for a stimulus package, there is not much of an industry left to stimulate back into life, Hennecke said.

Contact Europe News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Europe Video

  • Total CEO: Volatility is embedded in oil market

    Patrick Pouyanné, CEO of Total, says that oil price is not just a question of supply and demand, but of geopolitics, especially with turmoil in the Middle East.

  • Pressure is on for Brazil: Strategist

    Maarten-Jan Bakkum, senior multi-asset strategist at NN Investment Partners, says that inflation, along with weak currency are the main focuses for the Brazilian central bank now.

  • OPEC needs 'unanimity' for oil progress

    Charles Whall, portfolio manager at Investec Asset Management Global Energy Fund, explains why there's "no discipline within OPEC" and if it chooses to do nothing, price volatility will continue.