The United States has already defaulted.

a government bond gets a triple A rating when it is willing to pay the interest on their debts in a stable currency. The US Dollar is not a stable currency.

Now there are two ways a government can default, it can default by not paying the interest and restructuring its debt as happened in Argentina and in other countries repeatedly, or it can repay the interest and the debt in a depreciated currency. The United States has chosen the latter, and is now paying the price for this in the marketplace.

Like I said before, this is all about the dollar. Forget stocks and ratings and everything else. Focus on the dollar. It is headed towards CharminLand.

The downgrade of the past week is just the first of more to come.