The recent downgrading of the United States’ federal debt rating by Standard and Poor’s may not impact Cayman in the near future, but US developments will continue to have a significant impact on the island chain. “Cayman will largely be a prisoner of events in Europe and the US, unless it comes up with innovative products that can appeal to those who are trying to protect themselves from bad policies in Europe and the US, and also to attract Asian money from those who would like to invest in the US or even protect themselves,” said economist Richard Rahn, a senior fellow at the Cato Institute. Last week, it was reported that a number of Chinese companies were choosing to list in Cayman instead of the US. [Caymanian Compass]