S&P downgraded USA credit rating, what’s next?

Dear PGM Blog readers,
On Friday, August 5th 2011, Credit rating agency S&P had the guts to downgrade the USA sovereign debt from AAA to AA+ with a negative outlook for the USA for the coming 15 months. August 5th 2011, will go into history as the day that a “credible” rating agency has acknowledge that the emperor in accordance with group think “USA” is walking around with its pants of.

We have foreseen this and have been warning our readers for over 3 years now to get out of the USD, and the USA with their money and portfolio.

We believe that S & P with its downgrade of the USA has to continue on this path if it doesn’t want to lose credibility. In line with this we foresee a downgrade of the UK sovereign debt and downgrade of all USD nominated corporate bonds.

The consequence of this will be immense, USD and GBP dollar nominated bonds & sovereign debt counts for over 80% of all bonds & Sovereign debt.

This might lead to the biggest shakeout and reset in peacetime.

On the other-hand we expect the S & P and other credit agencies to upgrade Brazil & Colombia to A status and to provide New Zealand, and South Korea with a AAA rating.

The process of shakeout of the USA, Japan & Europe, which has started in 2001, will be a very stress- and painful and might take until approx.. 2030 to crystalize completely.

This is the main reason we have done so much effort for us to be able to facilitate our clients with accounts in Luxembourg, we believe that Luxembourg, Switzerland, Australia, Canada & Singapore will be the very few countries left in the current club of AAA countries.

For your convenience and protection, PGM CAPITAL is  able to facilitate you with current-, saving and capital deposit account in the currencies of the above mentioned countries.

For the sake of humanity we hope that we are wrong, but the open of the Asian markets this evening, August 7th 2011, at approx.. 8:00 pm EST, will provide us with more clues.

We foresee a big sell off in Equities and treasuries and a soaring price of gold.

Disclosure:
Currently our personal financial asset portfolio is over 50% invested in precious metals, like Gold, Silver, Platinum and Palladium and we don’t own any USA treasury bond or bond fund or USA nominated cash deposit.

Last but not least, please consider your risk tolerance and investment horizon before investing and keep in mind that the prices of Gold, Silver and other precious metals, as well as the stock of their producers can be very volatile and that sharp corrections might happen in the short time.

Yours sincerely,

Eric Panneflek
Chairman

One thought on “S&P downgraded USA credit rating, what’s next?

  • President Obama is acting like a spoiled brat whose toys have been taken away, instead of a leader. Even if drastic measures are taken (forcing compliance of paying taxes and cutting unjust funding for big companies), the US will be left in a huge debt hole. We, meaning the rest of the world, should watch out where, how, and in which currencies we invest our money. This era marks the beginning of “The Great American Nightmare”……
    Dèjá vu…..only much and much worse.

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