Geithner: The United States Will Never Lose Its Aaa Debt Rating.

Tim Geithner told ABC News that a sovereign debt downgrade will never happen in the US,

Treasury Secretary Timothy F. Geithner said the U.S. is in no danger of losing its Aaa debt rating even though the Obama administration has predicted a $1.6 trillion budget deficit in 2010.

“Absolutely not,” Geithner said, when asked in an ABC News interview broadcast today whether a downgrade is a concern. “That will never happen to this country.”

Geithner said investors around the world turn to U.S. Treasury securities and dollar-denominated assets whenever they are worried about global stability. That reflects “basic confidence” in the U.S. and its ability to bounce back from the global recession, he said.

Moody’s Investors Service Inc. last week said the U.S. government’s bond rating will come under pressure in the future unless additional measures are taken to reduce budget deficits projected for the next decade. in Bloomberg.com

But Peter Schiff is not so optimistic. He said on Friday, "people are looking at the wrong things. Things like the risk of Greece defaulting and forgeting about the greater risk of the United States defaulting. Because I think the US is in worst shape then most countries in Europe. If you just look at the situation in Greece, I now their debt to GDP ratio is higher than ours. But our GDP is a flop. If you look just at the manufacturing part of the GDP, goods production and you compare our deficits to that...it`s off the charts. No other country compares."