Quite a busy week and still the news pours forth. All is positioning now after the markets have had their say;
S&P hs downgraded the US economy from it's AAA rating. It has done this because it said it was going too and is still trying to re-build it's reputation afternthe pathetic performance during the 1st credit crunch. They know this will upset the US administration and think this shows their independence. Yet without the other agencies joining in their reasons are transparent.
The US Government is also seeking credibility after a shambles of a week. They will go for S&P bog time I think as Obama must fear looking so powerless.
China too is getting in on the act, calling for a new world currency and flexing its muscles. China is in a bad spot really, having cheated to it's economy by holding down the Yuan it had to build it's stock of US debt; now they fear the comeback of this debt being unenforceable.
These power plays are most interesting to watch - have I got the dynamics right?