The Standard & Poor’s rating agency announced Friday that it has downgraded the U.S. credit rating to AA+. While the other two ratings agencies (Moody’s and Fitch) have upheld the top rating – at least for now – S&P’s decision to downgrade has sent shockwaves across the investing world. China, the world’s largest holder of US debt, condemned the “short-sighted” political wrangling in the US and said the world needed a new and stable global reserve currency. Astrologically I would like to analyze the current situation from the Astrology Charts of United States, and China as well, since China is the world’s largest holder of US debt, and see what we can expect in the coming years according to Vedic Astrology.United States (July 4, 1776, 18.18 PM, Philadelphia, Pennsylvania) is a Sagittarius Ascendant with Ascendant degree at 6 degrees 12 minutes Sagittarius according to Vedic Astrology. The ruling planet is Jupiter. The reason United States is the Super Power of the world is that the Ascendant lord Jupiter is very strong in the 7th house of business and is powerfully aspected by the most auspicious planet Saturn, the ruler of 2nd house of money, 3rd house of change according to Indian Astrology. Saturn is located in the 9th house of foreign affairs, higher education and research work. Two other planets Venus the lord of 6th house and 11th house, and Sun the lord of 9th house are also strongly aspected by Auspicious Saturn the ruler of 2nd house of money.The 7th house of business lord Mercury is also very strong in 2nd house of money lord Saturn’s nakshatra. But in US chart some planets have a strong connection with 8th and 12th house of losses and uncontrollable expenses. This explains cycles of recession, and extremely good financial times in US history. The economy did well during Clinton years (1993 to 1999) when US was in good mahadasha of planet Sun. Sun rules 9th house of higher education and research work, and is in ascendant lord, and 4th house of real estate lord Jupiter’s nakshatra. Also Sun is powerfully aspected by 2nd house of money lord Saturn. This is followed by 8th house lord Moon’s Mahadasa. Moon is a strong significator of 8th house of losses and terrorism as it is in the nakshatra of Rahu in the 8th house. In Moon mahadasha, Rahu Bhukti, Mars anthara we witnessed the biggest terrorist attack on the US soil on 9/11. US entered 12th house of financial losses lord Mars mahadasha in Oct 2008, when Banks started failing in US.Both Moon and Mars are connected with evil houses 8th and 12th and do not have any connection with the auspicious planet Saturn the 2nd house of money lord. So the financial situation continued to deteriorate since year 2000. Astrologically one piles up debt when the mahadasha / Bhukti in operation have connection with 8th house and 12th house because the expenses will exceed the income. One can pay off debt when they go through mahadasha / bhukti of planets connected with 2nd house, 6th house, 10th house and 11th house because the income will exceed the expenses and they are in a position to pay off their debt. In US astrology chart the current mahadasha of Mars has a strong connection with 12th house of financial losses and expenses, so the national debt is growing. Things became worse when Saturn entered Virgo in August 2009, and started aspecting the four natal planets Mars (the mahadasha lord), Jupiter, the ascendant lord and 4th house of real estate lord, Venus the 6th house and 11th lord and Sun the 9th house lord in the 7th house in US astrology chart.Saturn will also transit the natal Saturn at 24 degrees in Virgo in US chart in the coming months this year. The time for US economy is very difficult until July 2012 according to Indian Astrology. The worst period will be over by next summer due to three reasons. Saturn leaving Virgo sign will be a big relief. Jupiter’s transit through Taurus (June 2012 to June 2013) and then Gemini (June 2013 to August 2014) will be very favorable for United States. Lastly US will enter a favorable bhukti of Mercury next summer according to Vedic Astrology. The job market and economy will do better after July 2012, and this will help President Obama, a Saturn ascendant to win the next elections. United States will enter Rahu mahadasha 2015 onwards and US will be prone to terrorism during Rahu period as Rahu is positioned in the 8th house in the United States astrology chart.The People’s Republic of China is the world’s second largest economy after the United States. It is the world’s fastest-growing major economy, with average growth rates of 10%. China (October 1, 1949, 15.07 PM, Beijing, china) is a Capricorn ascendant with ascendant degree at 10 degrees 18 minutes in Capricorn sign ruled by Saturn. The ascendant lord Saturn is very strong as it rules 2nd house of money as well and is in the constellation of 4th house of real estate, 5th house of entertainment, stock, bonds, gambling and 9th house of higher education, research work, foreign connections lord Venus and Saturn also aspects Venus.Saturn is the best planet in China’s astrology chart and at present China is in powerful Saturn’s mahadasha from September 2000 to September 2019. At present planets are nicely aligned for China, and the good period will continue until November 2014. Jupiter’s transit through Aries is excellent time for China until next summer as Jupiter is aspecting the natal position of ascendant lord Saturn in Leo. This is a peak time for China. China will continue to do well due to outsourcing by American business houses, globalization of economy, and manipulation of their currency. The challenging time for China will be after November 2014 when Saturn will enter Scorpio and aspect the natal Moon in Capricorn, the 7th house of business lord. Transit Saturn will also aspect the natal Saturn in Leo by its 10th aspect. The period from November 2014 to January 2017 will be a challenging period for China when China will face setbacks, may be due to changes in international business laws, or changes in US laws, and will have problems with the United States as well according to Vedic Astrology.