The Obama administration moved swiftly on Monday to downplay ratings agency S&P’s downgrade of its U.S. credit outlook, calling the decision a political judgment that should not be taken too seriously.
The Obama administration moved swiftly on Monday to downplay ratings agency S&P’s downgrade of its U.S. credit outlook, calling the decision a political judgment that should not be taken too seriously.
Oh those numbers are just so racist!
Hard to believe how out of touch with reality the TOTUS is. The financial consequences of the big zero’s plans for everyone to have a house with a unicorn in the garage, regardless of their income, are starting to be felt.
The only hope for the US is for the congress Republicans to do what they promised to do during the midterm elections – start cutting US spending. Continuing on in the everything is rosy, who worry mode will result in a situation where people will look back fondly at the good economic times of the great depression in the 1920’s.
I doubt that B. Hussien gets this, it may make more sense to tell him that he’s currently shooting about 20 over par.
http://online.wsj.com/article/SB10001424052748704004004576270693061767996.html?mod=WSJ_hp_LEFTTopStories
and that gold crossed a new threshold today … it’s probably nothing.
“The only hope for the US is for the congress Republicans to do what they promised to do during the midterm elections – start cutting US spending”
Loki…
If Republicans don’t refuse to increase the debt limit had hammer Obama… They may also become extinct in the 2012 presidential race.. Trump or someone could run as an independent and run the table!!! The party system may just be shut out of the Executive office in the future
It works for me!
JMHO
If the cost of borrowing goes up, the deficit has to be recalculated. Sounds serious to me.
I imagine they will have the same opinion of the 2012 election, and the tanks that come to remove them from the White House.
Sounds like these folks figure you can out run your self created troubles away, or simply deny the sane facts.
JMO
We are only reaping what has been planted. You can’t shut down thousands of factories, kick millions of workers to the curb and then expect life to go on as it was. Since everything in north america moves on wheels, the price of gas and diesel will be the straw to break the camels back. The future looks grim ,grimmer or grimmest.By the end of this year I predict we will be in full panic mode and the wise will be stocking up on emergency rations.
If the price of gas /diesel does drop to under a buck a litre it will buy us a couple more years depending on who wins the 2012 election. Since pretty well everything in Canada is owned by outside interests (primarily USA), what happens there will affect us here. We are joined at the hip and will be dragged into the vortex of a sinking super power. Obama was the worst possible choice of leaders and has surrounded himself with like minded incompetent advisors. This year will be very entertaining as they continue to pump sunshine up our asses while unemployment rises, the housing market continues to crumble and the cost of living skyrockets. Like the war in Afghanastan,….there is no exit stratigy.
Not racist every time, its come to danger at last
Yes, numbers are racist. Particulalrly when leftards attribute the invention of them to the Muslim world!
In this interview Obammy gets upset with pushy Texas reporter during interview. Doesn’t like being challenged. http://www.wfaa.com/news/texas-news/President-Obama-talks-with-News-8–120141169.html
First of all, Don’t Mess With Texas. The Chicago kid should know better.
Second, the fall is coming and like a good neighbour, we will feel it. World powers are holding meetings and US of A isn’t invited. There is open talk of replacing the US buck as the world standard, and it is not by a bunch of latte sucking economists over at Starbucks.
Who knows, after this thing shakes out, Canada might have another province or two. (I’d take Alaska, Hawaii, US Virgin Islands and Puerto Rico.)
“Hard to believe how out of touch with reality the TOTUS is.”
No its more like its hard to believe how out of touch the bloggers here are. To understand the economy, 1st you need to understand how the Fiat monetary system works.Only then can you understand that its not the debit, thats the problem, but the system itself.
After S&P’s warning: US Treasuries are up. That means that the market shrugged at the news. So the market gave the S&P a nice middle-finger.
It also means that S&P’s reason for issuing this warning – the political gridlock in Washington is a potential problem – was downright obvious to every investor beforehand and didn’t bother them then and won’t bother them now.
With the USA going the way of Greece, Iceland and Portugal etc. This will be very bad for us in Canada. Especially with the Lib/NDP/Bloc Separatist Party coming into power. They will ramp up spending bigtime. The average Canadian Family already spends more of their family budget on Taxes than they take home to their families for Food, Clothing and Housing combined. Canada has a structural total public debt of around 3 Trillion dollars. Ontario is over 300B in debt, Quebec is over 400B in debt. Not much room left to survive for the average Canadian. Government is taking food from the mouths of our families. The US going down the tubes on top of the Japanese problems will mean a lot of unemployment in Canada.
It’s probly nothing , that’s why silver and gold are skyrocketing especially silver (poor mans gold) it has gone from 18per ounce in 2009 to over 45 per ounce save me the mumbo jumbo about ratio’s to gold and all of that just ask your self why is it going up ….becasue in my opinion investers are scared of the dollar and want hard asset’s witch means the economies all economies your’s his her’s there ‘s are all in trouble becasue idiot’s have spoiled the child financially into oblivion it was a big party for fifty years and now it’s catching up throw in a few war’s badda bing badda boom your broke as a joke only good for a laugh!!!
After S&P’s warning: US Treasuries are up. That means that the market shrugged at the news. So the market gave the S&P a nice middle-finger.
If by “the market” you mean George Soros bought some US Treasury bonds, then your statement could be right.
The US federal government deficit is running at about $1.5 Trillion per year under Obama and he wants to raise the debt ceiling, again.
The only thing worth investing in is guns and ammo companies in the U.S., only a fool or an extremely rich ideological market manipulator would invest in US Treasury bonds.
Most US municipal/state bonds have become or are becoming junk bonds.
Yes, a billionaire is flexing his economic muscle in order to conspire against a rating agency’s warning. That is rational and makes perfect sense. This from a person suggesting that the debt ceiling not be raised in order to restore strong fiscal confidence to the markets.
On SUNTV last night, Theo Caldwell had a really good swing at Obama’s reckless attitude towards the USA’s money woes. My husband and I have watched Fox for years and so, like a lot of others here, are pretty well up on Obama’s skulduggery.
With SUNTV not worshipping at Obama’s well-shod feet, I’m glad that many more Canadians will get to see him “up close and personal”: it’s NOT a pretty sight.
(Thanks, RFB, for the interview with Obama and that great Texas interviewer: he had gravitas—a sharp contrast to Obama’s pettiness—and held Obama’s feet to the fire. HRH Obama was haughty and disdainful, while talking like some ghetto rat: dropping his g’s all over the place and playing, as usual, the blame game. What an intellectual and moral pygmy this minuscule man is. I don’t like to sound like Iggy in any way, but, “Rise up, America”!!))
This from a person suggesting that the debt ceiling not be raised in order to restore strong fiscal confidence to the markets.
Want to raise confidence in the markets?
Cut spending, don’t take on more debt.
Yes I know, cutting spending isn’t any part of your world view.
After what Obama did to GM and Chrysler share holders during the debt restructuring of those companies, it’s a wonder anyone invest any money in any American enterprises at all.
Oh and look!
The U.S. government is dumping it’s GM stock:
http://tinyurl.com/43cw3gc
After S&P’s warning: US Treasuries are up. That means that the market shrugged at the news. So the market gave the S&P a nice middle-finger.
It is typical of the fed to buy up their OWN assets to pump the market after an news like this. What I’m hearing from Bloomberg and others is our international creditors (China et al) have backed way off of our long term debt in favor of shorter terms to keep the value of the debt they hold stable. If / when we start seeing inflation they will dump our debt in nothing flat: watch interest rates rapidly increase. Watch what happens in the next 2-3 months.
Right. Because defaulting on your debt encourages investment. And please stay on topic. S&P didn’t complain about GM & Chrysler stock. They worried about Washington’s political gridlock as it relates to its repaying its debt and large budget deficits.
“Cut spending” doesn’t happen overnight. It’s not like magical money will appear in money bags the second you slash medicare or medicaid.
And if you don’t understand how not paying back the interest on your debt to bond holders is a bad thing, I really can’t help you outside of pointing to a Economics 101 manual.
“Cut spending” doesn’t happen overnight. It’s not like magical money will appear in money bags the second you slash medicare or medicaid.
Of course the money doesn’t “appear”.
The outflow ends or slackens immediately though and that is what brings confidence that government bonds may still be worth something in the future.
Raising the debt ceiling means spending will increase and the call to raise the debt ceiling wil come again and again until there is a collapse.
Where is the Change that will bring the Hope that if one invests in America today there will be a return on that investment tomorrow?
It’s about stopping the bleeding.
Instead of stopping the bleeding, raising the debt ceiling means letting the bleeding go on and borrowing more bags of plasma/blood expander which then simply leaks out the unstaunched wound.
ObamaCare opened the wound further, and talking nonsense about high speed rail in the State of the Union or forcing Cap & Trade makes investors think an axe is coming to open it still further.
And if you don’t understand how not paying back the interest on your debt to bond holders is a bad thing, I really can’t help you outside of pointing to a Economics 101 manual.
If your Economics 101 manual tells you to borrow money to pay interest on the money you’ve already borrowed you had better burn it.
Oh ok, I get it, when S&P had concerns about Bush’s deficit they were spot on according to the Democrats, but now that the shoe is on the other foot they are not credible ? You know Barry, sooner or later you are not gona be able to BS your way out of every situation.
Jesus, and the Baffled King composes Hallaluhyah.
Pay no attention to those book-keepers behind the curtain!
No problem here at all. Obama is going to consolidate American debt on a Capital One credit card…no annual fees and a super introductory rate!
Incredible.
If the S & P warning is meaningless, then why did Ogabe try to shut up S & P before they issued the warning?
http://hotair.com/archives/2011/04/20/wh-tried-to-keep-sp-from-issuing-bond-warning/
Let me boil it down so a child can understand:
1) S&P warns of US high debt, high deficits and political gridlock
2) The world shrugs because everyone is aware of this
3) In response, you advocate not raising the debt ceiling and just “cut spending”.
4) Doing so results in defaulting on interest payments.
5) Defaulting on interest payments results in a currency crisis that makes the 2008 crisis seem timid in comparison.
6) Republicans knows this but are using the threat to leverage spending cuts. They don’t ACTUALLY want a currency crisis. Investment banks know this as well and have warned against this possibility.
7) You, however, are drinking the downs Kool-Aid and think that this is advisable and desirable.
“Cut spending” doesn’t happen overnight. It’s not like magical money will appear in money bags the second you slash medicare or medicaid. michel
Least you forget that Obama Care took 500B from Medicare (1/2 trillion) in 2009-10, and that Medicaid is really a pass-through from Medicare. I would say Obama has tapped out Medicare… “FOOL”
The US Treasury has been buying their own Bonds, and as MOST know the Stock Market has untraceable buyers. Its Magic.. NOT
Economists are not Scientists…They practice and dabble in the black Art…; We seem to always pick dumb over substance
The US will not default on it’s debt.. Why? because other options are available. If Obama insists on defaulting it’s his call
To understand the economy, 1st you need to understand how the Fiat monetary system works.
Did you ever wonder why Spain was always a poor country even though fleets of galleons brimming with gold returned from the New World before paper money was ever invented?
Did you ever wonder why Ron Paul, who owns a number of stores selling precious coins/metals, is willing to sell his gold for ‘fiat’ money?
answer: Gold=paper Fiat Money
The money system works just fine as long as productivity continues and debt doesn’t become unmanageable.
Socialism destroys productivity by removing the incentive to produce surpluses, yet ‘social justice’ is insatiable because the unproductive members of society are supported by the productive members and the productive members have no incentive to produce surpluses which will be delivered to the unproductive members.
Productive people are thereby incentivized to become unproductive people and borrowing must occur to fill the excess need until the borrowing is ended when the lender has no more incentive to lend because what has been borrowed will not only not be repaid but interest on the borrowed sum cannot be paid unless spending on government services is cut.
You can’t endlessly just borrow from a lender to pay interest on the principle that has been borrowed while any hope that the principle borrowed will be repaid to the lender fades away entirely.
3) In response, you advocate not raising the debt ceiling and just “cut spending”.
4) Doing so results in defaulting on interest payments.
4) does not follow from 3) unless that is what the borrower wants to happen.
Interest payments continue, the cutting occurs in other areas of government spending(social justice) and that money is reallocated to servicing the debt.
The debt ceiling remains where it is.
As time goes on and more spending is cut the debt ceiling can be lowered to prevent spending increases on ‘social justice’ again.
Government shrinks.
Even a child can understand that borrowing money at interest to pay the interest on previously borrowed money compounds the interest and paints the borrower into an increasingly diminishing corner.
Massive spending cuts have to happen immediately or collapse is inevitable at an accelerating pace.
The Democrats didn’t pass a budget last year because why?
They wanted the unpopular spending cuts even they know are necessary to be the responsibility of the Republican congress, that’s why.
Michael said: “You, however, are drinking the downs Kool-Aid …”
Very quick with the Down’s Syndrome comment for a guy who goes from spending cut right to bond default. How those two go hand in hand must only be understandable to the really BIG brains of liberals.
I must tell you Michael that down here in Arizona I have been hearing and overhearing a LOT of people talking about the US national debt. My personal fave to date is the two black ladies discussing the US debt beneath my balcony here at Phantom Southern Command. One of the ladies has an Obama ’08 sticker on the back of her Mercedes SUV. From what she was saying about her condo tanking from $200 grand in spring 2008 to $65 grand in spring 2011, that sticker may be replaced with a GOP one next year. She wasn’t impressed with the debt ceiling debate either, nor the 14 trillion samoleans her country is in the hole. All in all, she sounded almost exactly like Rush Limbaugh. And I bet she frickin’ -hates- that guy.
Tell you something else. Stores down here are going very, very light on inventory. Everybody wants to “order it” for you, they don’t have it in stock. After-market car parts for example, many companies are now building-to-order on everything except their top, top sellers and keeping the warehouse empty. Even well known companies like Corbeau. Storefronts are going just-in-time from their suppliers, suppliers are going just-in-time from their raw material vendors. Result, it takes a month to get a chrome plated grapple grommet you could have had same-day or next-day a year ago. Same with big names like JC Penny, Sears, etc. Shelves are thin.
That’s pretty interesting, given the interest rates have never been lower in living memory.
So Michael, Barry Soetero may have -you- baffled and bedazzled with his mellifluous bullsh1t, and he may have the public sector unions baying for blood by his side. But anybody with something to lose, like a condo or a two year old SUV, they aren’t impressed.
Must be a Down’s epidemic, right Michael?
All in all, she sounded almost exactly like Rush Limbaugh. And I bet she frickin’ -hates- that guy…….Phantom @ 3:11pm
Consistent inconsistencies……my head hurts.
Stupid people Kate ….
The one thing folks forget. China owns Americas debt, while Americans don’t buy American anymore.
As a Nation the USA has been gutted industrially by Liberals.
One day , maybe over Taiwan. China will call in the debt. With no industry left but Global warming & government workers . How long can any Country survive?
@Revnant Dream
Since none of the military industrial complex was outsourced and war is good for business (for the winner), how long any country can survive is open to speculation. All through history major recessions have been followed by wars. Pleasant thought eh ?