United States Supplanted By China’s Thirst For Oil
Fitch Places United States’ ‘AAA’ on Rating Watch Negative
– The prolonged negotiations over raising the debt ceiling (following the episode in August 2011) risks undermining confidence in the role of the U.S. dollar as the preeminent global reserve currency, by casting doubt over the full faith and credit of the U.S. This “faith” is a key reason why the U.S. ‘AAA’ rating can tolerate a substantially higher level of public debt than other ‘AAA’ sovereigns. Medium – The repeated brinkmanship over raising the debt ceiling also dents confidence in the effectiveness of the U.S. government and political institutions, and in the coherence and credibility of economic policy. It will also have some detrimental effect on the U.S. economy. The ‘AAA’ rating reflects the U.S.’s strong economic and credit fundamentals, including: – Its highly productive, diversified and wealthy economy; extraordinary monetary and exchange rate flexibility; and the exceptional financing flexibility afforded by the global reserve currency status of the U.S. dollar and the depth and liquidity of domestic capital markets – in particular the U.S. Treasury market. The U.S. sovereign credit profile also benefits from the respect for property rights, the rule of law and a high degree of social stability. – Fitch continues to judge that the U.S. economy (and hence tax base) remains more dynamic and resilient to shocks than its high-grade rating peers.
According to Wikipedia , “The America’s Cup, affectionately known as the “Auld Mug”, is a trophy awarded to the winner of the America’s Cup match races between two sailing yachts. One yacht, known as the defender, represents the yacht club that currently holds the America’s Cup and the second yacht, known as the challenger, represents the yacht club that is challenging for the cup. The timing of each match is determined by an agreement between the defender and the challenger. The America’s Cup is the oldest international sporting trophy.” Just last month, Spithill’s “Oracle Team USA” AC72 Catamaran defeated Emirates Team New Zealand, Aotearoa, 9 races to 8, after being down 8 races to one. The Oracle team had to overcome a two point deficit from the get go, after being penalized for apparent cheating in the races prior to the actual cup series. Spithill successfully defended the cup in dramatic fashion, against the odds and in the process became one of sailings most recognizable ambassadors. In Annapolis, on the first day of the United States Sailboat Show, during a “Launch” party, Spithill wowed the crowd with a public appearance. According to an article at http://www.tradeonlytoday.com , “Greeted with a standing ovation, the Cups youngest helmsman offered his thanks and compliments to a crowd of exhibitors and VIPs. Ive enjoyed the show getting to meet fans and people in the sailing industry but, more importantly, people not from a boating background because, lucky for us, they soon will be, said Spithill, who is 34. Attendees acknowledged that the latest Americas Cup did much to enhance the sport of sailing and brought the event to a broad fan base. Lauding boss Larry Ellison, Spithill said the success of the event had silenced the critics, adding, Theres no turning back. With his new found celebrity, Spithill has been enjoying traveling the nation and appearing on television with the likes of Jay Leno and Stephen Colbert. He says its not really just about him, but the team that was sailing with him.
America’s Cup skipper speaks at the United States Sailboat Show
The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors, @TMFEnergy . The United States appears to be losing its status as the world’s top oil importer, thanks to the colossal turnaround in crude oil production caused by hydraulic fracturing and horizontal drilling techniques. While China’s 6.3 million barrels per day of crude oil imports are just slightly higher than the United States 6.1 million per day, the trajectory of the two countries’ crude consumption varies significantly. The United States could be the world’s largest crude oil producer by the end of the decade while oil demand drops as fuel efficient cars takeover our highways. Meanwhile, China is in the early stages of unconventional shale exploration, and with a growing middle class, fuel consumption is set to rise precipitously. See more on this topic in the following video. Stocks to buy to play the United States energy bonanza Record oil and natural gas production is revolutionizing the United States’ energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry willpad your investment nest egg. For this reason, The Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, ” 3 Stocks for the American Energy Bonanza .” Don’t miss out on this timely opportunity; click here to access your report — it’s absolutely free. Alison Southwick and Taylor Muckerman have no position in any stocks mentioned. Joel South owns shares of Ford. The Motley Fool recommends and owns shares of Ford. Try any of our Foolish newsletter services free for 30 days .