This morning the US ratings agency, Fitch, downgraded Portugal debt rating to AA. Still investment grade and a few notches higher than Greece, but a downgrade all the less.

This will now cause Portugal to have to pay more for selling more bonds and will likely send them down the same pathway Greece is now travelling. Default.

Funny how USA rating agencies are very quick to downgrade countries in the European Union, causing their debt problems to get compoundingly worse, and to issue statements like "they are not doing enough to control their debt and deficits!" Almost like they are diverting everyones attention away from the real countries with the biggest problems. Namely the USA, Japan, and the UK.

Greece's deficit to GDP is 13%.
Portugal's is 9.7%.

USA is 11.5% (Assuming 2010 GDP growth is POSITIVE 3.2%). If they are wrong about our growth this year and I believe they are, are 2010 deficit will likely go from a projected $1.6 Trillion to well over $2 Trillion and that would be a Deficit to GDP of 14%.

Can you say downgrade!