The debt crisis is very important in the U.S. because U.S. is regarded as the safest investment in the world. The lawmakers and the White House are forced to bridge their gaps and to initiate the U.S. losing the perfect credit rating that allows it to tap the capital markets at very low rates.
The yen strengthened to a higher level against the U.sd. dollar and gold with $1,500 a troy ounce. European markets have debt crises in Greece and elsewhere, also tumbled.
The U.S. policymakers might not have a consensus on how to address medium- and long-term budgetary challenges by 2013; If the consensus is not reached this would in our view render the U.S. fiscal profile meaningfully weaker.
The Republicans requested heavy cuts in government spending on entitlement programs, while Democrats and President Barack Obama would prefer to tax wealthy Americans .
The spending has increased spectactularly in the last years andthere is a limit on the growth tax revenues .
The U.S. policymakers have still not concluded on how to reverse the fiscal deterioration as credit analyst Nikola Swann said .