In the last few weeks we have seen a downgrade of American sovereign debt by S&P as well as all three major ratings agencies coming out in support of France's continued AAA rating. Markets seems to disagree. The people who actually invest in government bonds are rallying to American debt while selling off their French government bonds.
The interest rate on French 10 year bonds is about 3% while its American counterpart is closer to 2%. In real terms the difference is even larger since American inflation expectations are higher then expected European inflation. If markets agreed with S&P that French debt really was safer then American debt those numbers should be switched.
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