S & P AA+ rating on U.S. Sovereign Debt not Low Enough ( P.Schiff )

http://www.youtube.com/ ^ | August 05 2011 | Peter Schiff

[TheRightGuy]

what countries stil have an AAA rating?

[Para-Ord.45]

Stop making sense.

That sort of rational thought is verboten in Washington.

EVEN IF the whole Statist Govt. crashed the same elites will still be running the show.

You think they`re going to give up that much power now and the potential to aggrandize even more in a self manufactured “crisis” by going to a 10% T.T. , devolve medicare/cade and SS to the States, end all unconstitutional government programs !?

[Para-Ord.45]

Canada, Germany, NZ, France, UK,Switzerland i think

[Alberta's Child]

Larry Kudlow had Stephen Moore of the Club for Growth and John McIntyre of RealClearPolitics on his radio show today, and all three of them agreed that it is absurd for any rating agency to assign something other than a AAA rating to U.S. government debt.

Their rationale was very simple: "Does anyone on this planet really believe that the U.S. is more likely to default on its debt than countries like Germany, France and Canada?"

The whole idea is preposterous, though I'm happy to see S&P downgrade U.S. debt for symbolic reasons. This country really needs a slap in the face and a kick in the @ss to get our financial affairs in order.

[Ohioan]

An interesting idea. I suspect that it would also put a curb on some of the computer generated trading that leads to flash crashes.

[agincourt1415]

Not 10%, its less than, lets say .3 to .9 maybe. Forex would be lower. Tiered for larger volume.

This is already being talked about in Washington, but they are too stupid, to realize the true benefits. The EU is looking at it too. Again, stupid socialists want it as an add on tax. This is not add on, it pays for everything.

It will happen, because its the only WAY OUT of this mess, and get our economy back.

How many of you are emotional about keeping the Income Tax?

[GlockThe Vote]

Bfl.

[agincourt1415]

The traders will be pissed off for 5 seconds till they realize THERE IS NO CAPITAL GAINS TAX!

We will give volume discounts, and let them continue to TRADE LIKE before!

The market will go to 20,000 in a few months, the economy is tax free, GO LONG on everything!

[GlockThe Vote]

Bfl.

[Alberta's Child]

I agree with everything you've said about the path this country has taken since FDR, but that misses the whole point of a credit rating. What other credit instruments since the 1930s have outperformed U.S. Treasury bills in terms of safety and reliability? Government bonds from Nazi Gerrmany? Japanese bonds from the Hirohito regime? Corporate bonds issued by General Motors?

[Ohioan]

Keynesian economics corrupted much of the Western World. So, no, most of the major national debt offerings since the 1930 have been even worse investments than U. S, Bills & Bonds. There are exceptions, of course. Any Swiss Franc denominated obligation, for the obvious. The Swiss Franc at one time was worth 20 cents (U.S.). It has lately been worth well over a dollar. The dollar is now worth only about 77% of a Swiss Franc. Whose bond would you rather cash in?

Now there are bonds that have guarantees against currency devaluation. But the history of such is suspect. When they are really needed, they may not function as promised. When FDR devalued the $ from 1/20.67 ounces of gold to 1/35 ounces of gold; he also repudiated the gold clauses in such bonds. And one of the most tragic of the many terrible 20th Century Supreme Court cases, was the one where by a 5 to 4 vote, they allowed FDR to get away with it.

William Flax

[Para-Ord.45]

Found it:

18 Countries with a higher credit rating than the United States.

http://michigantaxes.com/wordpress/2011/08/18-reasons-to-view-the-debt-decision-negatively/

[GlockThe Vote]

http://www.youtube.com/watch?v=SgNLTb58K_Y&feature=channel_video_title

I love Schiffs’ clips. Brilliant.