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S&P downgrades U.S. credit rating from AAA

While they kept their resource securely within their lands, they bought up everyone elses stuff printing their money. Sounds like a win to me.

I used to tell my friends this... fiat money for cold hard steel is a damned good deal. We promise future productivity for tangible resources...not a bad trade.
 
This was long overdue. Fiscal mismanagement and crazy consumerism has led the world's largest economy into this situation. Americans must now get used to working at lower wages and longer hours and more importantly learn to save money for a rainy day.
 
This current situation looks like

Once there was a Evil man , he had a stolen a bag of apples stolen form ottoman and german markets, he went to new town. In order to make friends he cut 1-2 apples and gave slices of apple to new town's people, and he was one of of them. All the towns people took him as his own. Initially for first few months , he sang songs , wrote poetry and organized movies for towns people, until he became well trusted

Then one night the evil man (Financial groups run by you know who) , he encouraged the town's brave to go fight the coyotes in the woods, he told them bad stories how the coyotes would come eat town's children.
Many said , but we don't need to we have our cows and our economy is doing well.. but he persuaded all with his daily newspaper reports

People argued , well then how will be support if we don't farm and instead go to war with coyotes in woods.

The evil man ( Financial groups you know who) said don't worry , I will give you an apple from my bag , I have many more bags

So the braves went to fight coyotes , when they came back they found the town's economy was dead

Now , the evil man said look I will give you two apples only !! but you will have to give me 80% of your cows which you use for milking they will die anyways , since you don't have food to feed them. I am actually doing you a favor , by taking away a responsibility you cannot handle. He said well you know you can always have milk form my store

Reluctantly the towns people gave this guy who already had bags and bags of apple , 80-90 cows he quickly moved the cows over to a new destination did not keep them in the town ....

Next day when the towns people woke up , they thought well I guess they will borrow some milk form the evil man and have apples and in 3-4 years they will buy all the cows back.....

Little did they know , that the Evil man took their cows and he took all his apples and fled the town

While he was going he also put a sign , on the town ... the people of this town are not dependable they promise you something and then they don't keep their promise obviously did it to prevent other people to try to bring in apples and cows

Then the next day , the evil man set out to a new town , and this time he took with him 1 bag of apple and 1 cow.... to new town and repeated the process.

A wise child stood up and asked , so what did he do with all the bags of apples and cows he stole ?

Well simple , he had a big family as each of his children grew they went to a new town with bag of apple and cow , and they continued to follow in footsteps of the evil man

MORAL OF STORY : You know who did it in 2001 and they are doing it again to gain maximum financial gain
Its not the first time they have done it .. it no secret why they have been rich for generations :P
 
US loses AAA rating for first time

WASHINGTON: The United States’ credit rating was cut for the first time ever Friday when Standard and Poor’s lowered it from triple-A to AA+, citing the country’s looming deficit burden and weak policy-making process.

Standard and Poor’s revised the nation’s rating downwards to a AA+ with a negative outlook, despite a push back from the White House which said its analysis of the US economy was deeply flawed.

(Read: Analysis: Fear of a second global recession hits KSE)

It was the first time the US was downgraded since it first received a triple-AAA rating from Moody’s in 1917; it has held the S&P rating since 1941.


Moody’s and a third ratings agency, Fitch, say they continue to study the deficit plan to see if the US merits being kept in their ranks of AAA countries.

The blow came after the White House, Democratic and Republican lawmakers finally agreed on Tuesday to a deal to raise the nation’s debt ceiling after months of wrangling which sent jitters rippling through the global economy still trying to recover from the 2008 recession.

A debt downgrade will be a symbolic embarrassment for President Barack Obama, his administration and the United States, and could raise the cost of US government borrowing.

Since the dollar and US Treasury bonds are so central to world trade and finance, a downgrade theoretically could rock the global economy which is already being battered by the eurozone crisis.

But some analysts have questioned whether a ratings cut would impact demand for US debt, have dismissed the raters as having low credibility, and questioned whether the markets would take much notice.

Ratings agencies Moody’s and Fitch both reaffirmed their AAA rating of US debt shortly after Obama signed a bill raising the debt ceiling on Tuesday.


The downgrade technically signaled that it is more likely than before that the United States could renege on its debts.

There was no immediate comment from the White House or the Treasury on the reports.

But a source close to the discussions said: “There are deep and fundamental flaws with the S&P analysis.”

S&P is considered the most influential of the three major rating agencies which also include Moody’s and Fitch.

It has been the most aggressive in moving towards a US downgrade. On April 18, S&P lowered its outlook attached to the AAA rating from “stable” to “negative,” citing the absence of a credible plan for reducing Washington’s huge fiscal deficits.

In July, during the protracted standoff over raising the government’s debt ceiling between Obama and Republicans, S&P placed the United States on credit watch and warned there was “at least” a one-in-two chance that it would cut the rating within 90 days.

S&P also suggested any deficit plan needed to trim some $4 trillion over 10 years; the plan that has passed only envisages cuts of up to $2.4 trillion.

There are currently 17 nations boasting a AAA debt rating from S&P along with three other territories — Hong Kong, Guernsey and the Isle of Man.

Moody’s, the oldest credit agency, placed the US on a downgrade watch on July 13 and upheld its rating Tuesday after Congress passed the last-minute deal which avoided a debt default.

But Moody’s also added a “negative” outlook to its rating, warning it could still downgrade the United States if the deficit-slashing plan goes astray, if fiscal discipline weakens, or if growth deteriorates significantly.

Fitch opened a review of the US rating on June 8 and said it would be completed by the end of August.

After the debt deal was clinched, Fitch said the United States would keep its AAA rating but warned it was under review.

Soon to degrade rate A from AA

A debt downgrade will be a symbolic embarrassment for President Barack Obama, his administration and the United States, and could raise the cost of US government borrowing.

It is really confusion, I read newspaper it says debt deal last-minute prevent US borrowing limit but it says could raise of borrowing??
 
Simple perfect example is coke/pepsi. We love drinking coke/pepsi, we didn't stop drinking but addict .......similar to spending/borrowing by US.
 
no not fashion statement.
economy was based on banks....
banks are not real money makers but money spinners..they spin money and speculate...
if their guess fails...so does the economy which is hard wired to them and has lost vonnection with real wealth generators such as manufacturing. agriculture and mining

People should watch the movie Name "WallStreet: Greed is Good"

awesome movie. shows true color of this so called mombo-jumbo FIIs.

Happy weekend.

Sputnik
 
My Indian Friends should also check current Mac Index. India is recently added into his index. Just 2 weeks back only. If i am not wrong. It shows how Indian Govt. Managing to Fight against Recession. Acc. to report, GoI kept Re. undervalued to the tune 53%. China keeping its Yuan undervalued 40%.
This is the reason why still Exports are doing fairly good and almost no panic on the street.

Regards,

Sputnik
 
I once read a BUMPER STICKER in the US. It said, ''I PAY MY VISA CARD BILL WITH MY MASTER CARD!!!''

Well it seems limits on both credit cards have run out for the US. I have been saying this previously and will say it again, AFGHANISTAN is a SUPER POWER proverbial grinder, it made the British go bankrupt and loose their global dominance, it turned USSR into Russia and CIS states essentially broken at the seams, and now it will de-thread USA and its economy very soon. Looks like the ghost of OBL is finally getting to see the master plan come to fruition!!
 

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