Standard & Poors ratings agency has just downgraded the U.S. debt outlook to negative

Justacommeman

Boosts gold............US retains it's AAA rating albeit tarnished. MJ

CaptHenway

Will we see a new "SERIES JB" savings bond for "Junk Bond?"

AUandAG

INFLATION is on it's ugly way, big time.

bob

renman95

Gee, I wonder who could've predicted this.

Overdate

Inflation? Where?

roadrunner

Why did it take S&P so long? And how much longer before they become a "GSE" so that the rating can be raised back up? The govt has almost everything in its toolbox except
its own rating agency.

roadrunner

giorgio11

<< <i>Boosts gold............US retains it's AAA rating albeit tarnished. MJ >>



What I don't understand is why all the good PMs stocks -- SLW, AUY, GG -- are taking such hits of 2%-5% on a day when gold and silver are close to records? What am I missing here? (Yes, they are up double digits in the past few months. But I'm just sayin' ... ?)

ttown

<< <i>Inflation? Where? >>



The FED, their heads are now in hyperinflation........

CaptHenway

So, why is the DOllar Index up big time today???????
.
What am I missing?

percyb

<< <i>Boosts gold............US retains it's AAA rating albeit tarnished. MJ >>



I downgraded US debt to junk status three years ago. What took so long for SP to downgrade the "outlook"?

revoldlog

I think the fiat currency (both USD and EURO) devaluation is accelerating.

1. Two weeks Soros after Bretton Wood II said USD is no longer the reserve currency.
2. Last week, BRICS wants a new reserve currency. And they agreed to trade without using USD.
3. Today, S&P downgrade the outlook of the US.
4. ???

I don't believe in conspiracy theory, but it really seems some force is trying to bring the USD down, which I think should have happened earlier simply due to the fundamental.

As for today's USD spike, I suspect people convert EURO back to USD to buy gold/silver/commodity. (Wheat went crazy today)

57loaded

<< <i>So, why is the DOllar Index up big time today???????
.
What am I missing? >>



a shoot form the hip response might be that behind the green curtain everything is being pulled to keep it up. but there are probably other factors i am unaware of as well.

ps the devil was defeated

jmski52

According to Santelli, there simply is no place else for so much money to run, so it's either US debt or EU debt. It's simply a question of recognition of the problem.

I was out mowing my yard and there was only one spot that I missed when I did my pre-mowing patrol. Boy, did TSHTF!!!

Stew

No surprise there.
The ratings companies are always late to the dance
they just put out there what everyone has known for months.
like they did back in 2008 during the crash.

cladking

<< <i>Gee, I wonder who could've predicted this. >>




Who would imagine that spending ever increasing amounts of money while decreasing taxes might lead to problems.

Who would ever guess that people would actually vote for lower taxes or more benefits.

MilesWaits

<< <i>According to Santelli, there simply is no place else for so much money to run, so it's either US debt or EU debt. It's simply a question of recognition of the problem.

I was out mowing my yard and there was only one spot that I missed when I did my pre-mowing patrol. Boy, did TSHTF!!! >>



I feel your pain Jmski! Verry funny. I have a 112 pound Golden, enough said. Santelli has become a lightening rod for the obvious.

Miles

Overdate

A U.S. debt default could have unintended consequences, including making the dollar stronger.

Government bonds are denominated in dollars, but they are not dollars themselves. If a default occurs, it will be because the Fed is not printing enough dollars to redeem the bonds coming due. This could happen through a refusal to raise the debt ceiling, or by Congress reining in the Fed.

If this happens, U.S. bonds will take a hit in price, but the dollar itself may gain value, because dollars will be in short supply, but they will still be needed in large quantities for private and public transactions.

A default in federal debt will have the same deflationary consequences as a widespread default in private debt, at least over the short term. People who are counting on being able to raise money by selling their government bonds will instead have to raise cash through other means, and this competition for cash will drive up the value of the dollar. This happened in 2008, when the shortage of cash was precipitated by the stock market meltdown and the credit freezeup. It could happen again, for different reasons.

dpoole

It's like everyone knew the Feds were screwing around.

This is just somebody opening the door and taking the flash foto.

Might change the political dynamics, though, since there's an 8x10 glossy now to show the family.

mrearlygold

<< <i>
I don't believe in conspiracy theory, but it really seems some force is trying to bring the USD down
>>




Sure is. It's called the welfare-warfare state with millions of ignoramuses supporting even more of it.

cohodk

<< <i>Boosts gold............US retains it's AAA rating albeit tarnished. MJ >>



Surprise, surprise.......not.

Treasuries initially sold off on the news, only to rally back strongly. The US debt market yawned.

jmski52

A default in federal debt will have the same deflationary consequences as a widespread default in private debt, at least over the short term. People who are counting on being able to raise money by selling their government bonds will instead have to raise cash through other means, and this competition for cash will drive up the value of the dollar.

If I remember correctly, this is what happened in the Great Depression and this is why the Bernanke is sworn to keep it from happening by dropping cash from helicopters (and B-52s) if necessary. Which is also why gold and the other precious metals are a real good idea. Cash, too.

Goldbully

No problem, Timmy and Barry think the S&P is fighting a losing battle with their righteous governmental policies.
The S&P just doesn't get with their program!!!

Justacommeman

<< <i>

<< <i>Boosts gold............US retains it's AAA rating albeit tarnished. MJ >>



Surprise, surprise.......not.

Treasuries initially sold off on the news, only to rally back strongly. The US debt market yawned. >>



It did boost gold intially and the AAA rating is tarnished. I'm not responsible for the rest. Plus, the rest of the story has not been written yet. MJ

dragon

I think President Obama said it best when he made remarks to the effect....In spite of all Americas current problems, there isn't a country in the world that wouldn't trade places with us in a second.

Justacommeman

<< <i>I think President Obama said it best when he made remarks to the effect....In spite of all Americas current problems, there isn't a country in the world that wouldn't trade places with us in a second. >>



Ha!I believe Obama believes that and plenty of Americans do also. That statement is a kin to, "Hey, quick look over there!" Whip up some patroitism and chest bump and all is good. However, his statement and this sentiment doesn't make it so. In fact it's typical rheotric and filled with unbridled hubris. I know plenty of folks in the world who wouldn't make that trade any day of the week and twice on Sunday. For sure there are other countries who would scoff at this just based on our less then stellar quality of life and our poor public school system. I love living in the US but my friends in Sweden would never leave there homeland to actually live in the States. Sweden is a very happy country as are other Scandanavian/Norweigian countries. Geez, I even think Canada would chuckle at that proposal. I think the US probably falls around #20 in best places to live. Yes, our bombs are bigger and we have lots of boats.

2010 Forbes happiest countries in the world
This list dominated by Scandanavia, Canana, Australia

Best places to live in the world 2010
This list dominated by Canada, Austria, Australia and Finland.


Newsweek best countries in the world 2010

Finland best overall, Japan best large country, Ukraine and Australia score high.

MJ

calleocho

I saw a movie made in Finland once ...I then understood why they have one of the highest suicide rates in the world

If i was very wealthy i would most likely not live in the US... thats true.

however None of the countries on that list has helped so many millions of poor imigrants over the last century to begin a new life full of opportunity, myself included, nor has any of those countries contributed 1/10 of the great inventions and advances that his country has.

And also those mighty ( and expensive) bombs saved their asses from the germans and kept them safe from the Soviets.

Justacommeman

Well if there was a best place to come live if you are an imigrant list the US would surely rank high there. Count my family in that number.

The US for sure ranks high on big bombs and they know how to use them list. Russia and Germany didnt score high on the best or happiest places to live list either.

Sorry, but plenty of the countries on the best of lists above provide inventors, solutions and advancements for the betterment of the world. I'm not buying your 10% number for a NY minute. I think you may have it backwards to a degree.

Search engines and social media the US wins hands down, The US will score high in tech although thats a very contested field these days.

At the end if the day when it comes to the overall best, happiest and most liveable places to live in the world it ain't the US. Not by a longshot. No matter how much we say it so.

I will now go into my turtle position and wait for the GO USA GO USA chants that are sure to come and eventually wait for them to die out as I'm jamming to ABBA.

MJ

dragon

To keep things in context, I believe the President made that remark in regard to our economy.

ksammut

<< <i>To keep things in context, I believe the President made that remark in regard to our economy. >>



Then he was lying through his teeth.

We can no longer live off the out of thin air money the reserve currency has given us.

edmundfitzgerald

<< <i>I think President Obama said it best when he made remarks to the effect....In spite of all Americas current problems, there isn't a country in the world that wouldn't trade places with us in a second. >>



China

bstat1020

The country is in sad shape. Speculation and big inflation coming which means big interest rates coming!!

cohodk

Aint no tarpon in Sweden. BTW, what is their tax rate? Sweden has a population of 9 million which will begin to decline very soon. Prosperity and declining populations do not co-exist.

Unfortunately this country has a demographic situation that is somewhat unique to the other developed countries.

derryb

S&P is staffed by former Air Traffic Controllers who continue to be asleep on the job. If the US had to undergo a credit score as you and I do, it would probably be a negative number. Those who continue to value ratings from the likes of S&P will soon have no value. I'm actually surprised Bernake or Geither have not received a Nobel Prize. It has become bizzaro world: bad is good.