The Fed, FDIC, Treasury Dept and other Federal agencies have issued statements disavowing the value of the S&P rating downgrade. The Treasury claims that the numbers that S&P cites have trillions of dollars in errors.
[FROM: Washington (Dow Jones)--Standard & Poor's downgrade of the U.S. government's debt will not affect the risk-based capital requirements for U.S. banks, federal regulators said Friday evening.
The Federal Reserve, Federal Deposit Insurance Corp. and other federal banking regulators said in a statement that the lowering of the U.S. government debt rating from AAA to AA+ "will not change" the risk weights for Treasury securities and other securities issued or guaranteed by the U.S. government or government agencies.
"The treatment of Treasury securities and other securities issued or guaranteed by the U.S. government, government agencies, and government-sponsored entities under other federal banking agency regulations, including, for example, the Federal Reserve Board's Regulation W, will also be unaffected," the regulators said.]
Even besides the inherit ability of the US to generate wealth not counting its ability to print money that other countries will accept, the assets of the government itself in terms of public lands that hold vast natural resources far outstrips its debts. Privatizing these public assets are of course the ultimate goal of the neo-feudalists driving this totally manufactured crisis. PS for the tea baggers, they see you as property as well, Mr and Mrs Serf.
On creating a Tsunami: When the tea bagger sees the ocean suddenly drain out of the harbor, he thinks "Ah! free fish". Nothing is free.