Yep.
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Posted on 07/15/2011 4:35:31 AM PDT by blam
Losing the worlds top credit rating would be unthinkable to conservatives just a few years ago now its considered no big deal a position the libs have held for years..the country is doomed by its own idiocy.
I have lived in a lot of third world countries, they don't control their own economies and destines because they don't have the credit standing in the world to do so.
This race to become a third world debtor nation spurred on by traitors in this country who call themselves patriots is utter madness. Incidentally these are the same folks who refuse to recognize the WOT and the fact that we are under attack on a variety of fronts by people who genuinely want to kill us all.
The Market Ticker
Karl Denninger
July 15, 2011
* 09:36 15Jul11 RTRS-S&P PLACES U.S. 'AAA/A-1+' RTGS ON CREDITWATCH NEGATIVE
* 09:37 15Jul11 RTRS-RPT-S&P PLACES U.S. RATINGS ON CREDIT WATCH NEGATIVE
* 09:38 15Jul11 RTRS-S&P SAYS AT LEAST A 1 IN 2 CHANCE IT COULD CUT RATING
* 09:38 15Jul11 RTRS-S&P SAYS POLITICAL DEBATE ON DEBT CEILING A SIGNIFICANT UNCERTAINTY
* 09:39 15Jul11 RTRS-S&P SAYS SEES INCREASING RISK OF POLICY STALEMATE
* 09:39 15Jul11 RTRS-S&P SAYS COULD LOWER U.S. RATINGS WITHIN 3 MONTHS
* 09:39 15Jul11 RTRS-S&P SAYS MIGHT CUT RATINGS BY 1 OR MORE NOTCHES IN AA RANGE
* 09:39 15Jul11 RTRS-S&P SAYS BELIEVES RISK OF PAYMENT DEFAULT SMALL BUT INCREASING
The danger is right there in the bold.
This is not about the "ceiling." It is about fiscal sustainability.
Here is the text of the salient section from S&P as reported by Reuters: -- We may lower the long-term rating on the U.S. by one or more notches into the 'AA' category in the next three months, if we conclude that Congress and the Administration have not achieved a credible solution to the rising U.S. government debt burden and are not likely to achieve one in the foreseeable future.
There it is.
Folks, it is time to cut the crap. We must cut the growth of government debt to below the growth in GDP. Since at present the government is providing ~12% of GDP via borrowing, this means we must cut federal spending by something closer to 15% of GDP, since GDP will contract when we do this (it's the math, and is inescapable) and debt must shrink faster than GDP does, or grow slower than it does.
Incidentally, that means we must cut federal spending approximately in half, double tax receipts (not rates), or some combination of the two that adds to the same figures.
And we must do it now, because the laws of exponents, which we cannot change, state that the longer we take to get to the above point the greater the cut in the federal budget will have to be.
In other words we will soon get to the point where it makes absolutely no difference what we do - default will become mathematically inevitable.
This sucks, and I understand it sucks. It doesn't matter if it sucks. It also doesn't matter if Congress likes this or not.
In blunt language it no longer matters whether there is political will to act as is required. Arithmetic does not care if you like the answer that it provides.
I have been warning of this outcome for four years, and saying that time, while available, is not unlimited.
We are now out of time.
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Attempt to restructure the debt by all means but don't start blaming the lenders for your freely-chosen debt. The lenders didn't hold a gun to your head. Your debt was legally authorized, and 'may not be denied'.
Sell assets, cut spending, remove barriers to domestic wealth-production. This is how to deal with debt.
Or secede and let the Monkeys in the blue states pay for their own sh*t. Which also works.
Or default, lose your embassies and external bases and go five years without a penny of foreign money.
But whatever you do, stop blaming other countries for your spending habits. It's just unmanly.
Folk’s so what if we default. It only proves to all, that the demoncraps want cover for making the US a nation of deadbeats. Thank you local deamoncrap for doing such a wonderful job of spending, spending, spending!!! But you leaches who live off the Govt for your vote payoffs will need to seek a new country to live off the backs of those that work. Maybe you all could move to Ca and learn to live the life of a prevert.
That said, a government bond is promise to the bond-holder to tax the people at a later date. Is that too hard to understand?
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No problem. We rural Americas still cling to our guns.
| I don't think it is possible for this country to have a more sorry bunch of losers running the show. Cut, cut, cut! Cut the spending, cut the government, cut the regulations, cut the taxes and get the hell out of the way! Zer0 doesn't realize how lucky he is that so many people aren't paying more attention. Otherwise he'd have to call the moving vans and sneak out of the country in the middle of the night. An arrogant Marxist was spending More money, without comprehending. The piss-stream media concurred Without saying a negative word At the Republic we knew was ending.
Barack Jackwagon's Campaign Agenda: More taxes, more debt, more unemployment, hello Marxist America. Employment is an impediment to any good Marxist's objectives. If we allow these clowns a $2 trillion debt ceiling increase it will be quickly gone. And just like that, Congress will be back stealing more, in no time flat. His administration's stimulus and its' 'recovery summer' put unions ahead of a healthy economy, and Americans are still asking the question, where are the jobs? Zer0 says he saved 'jobs' (read: union jobs - as in the UAW/auto bailout. The American people deserve some answers, but when it comes to this administration, it's clear that they don't have many. It's your economy, stupid! He is beyond toast in 2012. Countdown until Obama leaves Office: 554 days as of July 15, 2011. |
“You want to be armed with a little bit more than the truth at this point”
Yes at this point if you don’t have year’s worth of food and the means to seriously protect it then you have work to do. A little junk silver and fractional gold wouldn’t hurt either.
I’m not “blaming other countries.” I’m saying, it’s their tough luck that they loaned to a bad risk. Pure capitalism. And, yes, whenever there is a bad loan it’s both the fault of the lender and the borrower-—the borrower for lying by saying he would repay and the lender for poor judgment. Both should pay a penalty.
Not following what Trump and Rubio are saying. Please elaborate.
Rubio says the way out is to Liberate the Free Market from the collectivist central planners. Thus allowing American companies to create jobs and thus taxpayers providing revenue and growth again. Trump says our leaders are Stiffs. Not getting us good deals in the world economy. I think they make more sense than anything else I have heard.
This is the only thing that I disagree with. We are on the verge of a SECOND global financial disaster. The first one hit in the late 1920’s, early 1930's and affected every market place as neither Europe nor America could help themselves much less each other.
The impending financial disaster will differ from the 20th Century one by involving more markets but the end result will be the same.
Remember everyone, like it or not, we came out of the 20th Century financial collapse because of a world war not smart financial polices and increased governmental spending. And, I for one, have no desire to inflict that upon my grandchildren.
It seems to me that what the economics savants are saying is that whether or not Boehner and the Pres work a deal the US economy is so bollixed that American bonds will have to be downgraded sooner rather than later. If our economy is in such a mess that we, like Ireland, Portugal and Greece will soon have to take our medicine, let’s get it over with. Either attack the debt cieling as though there is no tomorrow, or sit back and suffer the consequences. Half measures at this moment in time simply will not do.
If our credit rating drops it’s not because we fail to increase the debt ceiling, it is because it is so high and we are slamming into it.
This time last year the jimfrees had $50K in credit card debt. Today that number is about $37K. Our FICO score has jumped up significantly. I expect another score hike soon when I retire a card. In October when we drop below $30K installment debt it will rise again.
The Dem offer of $2B in cuts is the equivalent of my cutting $111 from the jimfree family budget.
Ding! Ding! Ding! WE HAVE A WINNER!
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