I don't want to be an alarmist, but I am getting alarmed. Until US households repair their balance sheets, neither the US, the UK, Europe or Japan will be in a position to be the motivating force for a sustainable economic recovery.
Think of what would happen if you lived in one of the 58 developing countries that remain unrated by Standard & Poor's, Moody's and Fitch. You would have very limited access to capital and investment, and the cost of borrowing would be significantly higher.
Mirroring issues in the EU, a problem of debt cannot be solved by yet more debt. With the threat of a downgrade looming, any rise in interest rates could make the situation worse, hitting the tax payer and U.S. exporters.