Posted on 08/07/2011 10:41:32 PM PDT by Razzz42
...Domestically, you are still better off with federal paper
than state or municipals. The S&P is merely confirming the Sovereign Debt Crisis.
There is no doubt that we have a serious Sovereign Debt Crisis. However, if that is the real reason for
the S&P Downgrade, then it should apply to ALL countries and the real rating should be BELOW JUNK!
Why? There is NO collateral! If a country defaults, you cannot go to court and seize property. You cant
run down to the National Art Gallery and start walking out with Renoirs. Illustrated above is a chart of
the Total Accumulative Interest Expenditures as a Percent of Total . Had we just printed money and
NOT borrowed this would have eliminated 68.2% of the entire national debt. There would have been
NO competition with the private sector to borrow reducing economic growth, raising unemployment,
and causing taxes to rise. We would NOT need a credit rating and inflation would have been at least half
the rate over the last two decades. It costs MORE to borrow than it does to print and there is NO
empirical evidence that borrowing is less inflationary than printing. Oh well! Thats just another of those
stupid myths. To make matters worse, 46% of these interest expenditures are exported and have just
ABSOLUTELY NO domestic stimulus affect whatsoever. So ya! Get those rich bastards. Tax all their
money to export it and stimulate the world. Keep that theory going and you should succeed in
accomplishing the socialist goal of the perfect world. Nobody will have any money and we should be a
third world country by then. But what the hell; we got those rich bastards! As Herbert Hoover wrote in
his memoirs; Sometimes government burns down the barn to get the rat.
(Excerpt) Read more at martinarmstrong.org ...
Maybe I’m an idiot (here), but what’s the point of having credit rating agencies if they wait for a default before telling you that you made a risky investment? That is exactly what happened with the housing bust, and a LOT of us think their execs should be doing time because of it.
If anything, they’re way too late in downgrading the US. We should have been downgraded a decade or two ago when it was clear what our state was regarding unfunded future obligations. By 2009, it was clear that the Obama administration had absolutely no concern about running up debt, and we should have moved to junk territory. By now, deep in junk territory.
So I have no idea what this guy is talking about - or we have multi-billion dollar business that do what any of us FReepers can do which is read the news, see that a company (or government) is broke, and then downgrade them. Yea...tough work if that’s all that is expected of them.
Anyone who does not think the US did not deserve a downgrade is an self-deluded idiot. Hey, don’t feel bad, the AnointedIdiot and much of the libtard progressive camp is in this camp.....=.=
Yes S&P did the right thing.
The other agencies have done it too, and some are threatening it.
but as all things Obama, the media is right there to demonize S&P, the taxpayers and Tea party.
The victims.
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