Japan (Mainichi) News Flash: "US Debt Agreement Reached" (Erroneous Report/House Hasn't Approved)

Mainichi Shinbun News (Japanese daily) ^ | 1 August 2011 | AmericanInTokyo

[AmericanInTokyo]

Japanese news is all awash this morning in every news agency with the bulletins that "President Obama announced that the debt ceiling agreement has been reached." They appear to be following CNN's international news lead and are leaving out critical facts.

For example, this erroneous "flash alert" is typical and is seen also in Asahi, Sankei, Yomiuri, Nikkei, NHK and others:

"米債務問題：上限引き上げで与野党合意 　【北米総局】オバマ米大統領は７月３１日、ホワイトハウスで会見し、米債務上限引き上げで与野党が合意に達したと発表した。"

[greeneyes]

Egan-Jones already downgraded USA credit rating to AA+ last weekend. LSM did not report it. They are a small firm, not as well known as Moody's and S&P, but they correctly called the looming 2008 meltdown before the other larger firms.

[AmericanInTokyo]

Well put. Very well put. Like Rush Rimbaugh predict, pubs got rolled on this one BIG TIME (and the People for that matter).

[AmericanInTokyo]

Chief Strategist for Mitsui Sumitomo Bank in Japan Mr. Daisuke Uno says, "regardless of a US debt "deal" struck in the last few hours, the Creditworthiness of the United States has been damaged and the problem is NOT SOLVED." This quote is just breaking.

[GeronL]

The GOP got nothing in this except a debt commission that is going to make them choose between raising taxes and cutting defense.

They’d be voting to be blackmailed if this stays in the “deal”.

[GeronL]

It’s pretty clear that it would take at least $4 trillion in real cuts for the credit rating agencies to think the US was serious.

Now, after the downgrade, we might just see the Democrats try to ban the credt rating agencies.

[AmericanInTokyo]

I note that there was a Dollar Buying mood this a.m. in morning sessions in Asia, in Japan at least, but that may change in the afternoon when the reality of this paper tiger, this trojan horse, this highwayman sham, is made more clear for currency traders. At any rate, Uno of Mitsui Sumitomo Bank here in Tokyo is saying that in the Fall, this debt problem is going to explode again, and then the Yen is going to climb to 70 Yen to the US dollar, at least.

I think there is no confidence at all in Obongo before the US TV cameras just a few hours ago, and this "deal". Once you look at the particulars, and that is exactly what the traders and analysts are doing, even though the Japanese media is hopelessly behind and are lap dogs for CNN, Reuters and the NYT/WaPo establishment (on this issue at least).

[GeronL]

Yep. People should have a really bad feeling that the fix is in. The political class think they can keep this colossal debt pyramid scheme from toppling over (and keep adding more) and it will fall sooner or later.

[AmericanInTokyo]

Financial Times is now running with a story, just a few minutes ago, saying the "deal" may be KILLED IN THE HOUSE OF REPRESENTATIVES ON MONDAY due to an alliance of a) pissed off fiscal responsibility Freshman Tea Party types, and b) Defense Hawks in the GOP mad about Defense cuts. This may be enough to scuttle the deal, no matter how hard Boehner cracks the whip...according to the UK Financial Times just now.

At any rate, Rush Limbaugh and Mark Levin should be VERY INTERESTING TOMORROW.

[greeneyes]

Not a surprise. The excessive printing of US Dollars has a negative impact on other countries as well a US citizens. It is past time for interest rates to go up as far as they are concerned.

The fed can't do that for fear of deepening the recession, so outside forces will either force the rate increase or something else will replace the use of dollars as the world's reserve currency.

It's nuts really. All they had to do in exchange for the debt ceiling increase was to freeze spending, and it would have been more “cuts” than the rating agencies asked for. That is something that the majority of the politicians would not have been penalized for.

Leaving plenty of time to have hearings and well written legislation that everyone could read and debate regarding binding cuts for later years. Instead we have a cobbled up last minute deal that no one is sure what is there. Just goes to show it's probably more about election positioning than anything.

I also read that China has been telling their citizens for quite a while to invest in gold and silver. Don't know how true that is.

[AmericanInTokyo]

Just like TARP and OBAMACARE.

Well I guess Boehner will say tomorrow that we "have to pass it in order to be able to know what's in it."

[skinkinthegrass]

thanks, for the ping.....heads-up.
It's really goin' to "Hit the Fan" w/ these posts on this thread.

[greeneyes]

“Just like TARP and OBAMACARE.
Well I guess Boehner will say tomorrow that we “have to pass it in order to be able to know what’s in it.”

Nothing would suprise me at this point.

[skinkinthegrass]

Obama and Obama and Obama have agreed.
Well I guess Boehner will say tomorrow that we "have to pass it in order to be able to know what's in it."

Yhea, We (the TEA Party) got rolled...
but, supposedly NO new taxes....inflation, is still a tax.

Quoting from another freeper:
Brazilian saying:"$ame old $h!t, but different Flies."
its' the Same old, same old.

[GeronL]

I hope it fails. This is a bad bill all around.

[AmericanInTokyo]

cool .gif

[muawiyah]

Really large scale investors who purchase national debts probably don’t follow the bond rating services that closely ~ if at all. They have their own staff and their own approach to these matters.

[Eric in the Ozarks]

Kyou wa ATSUI !