Standard & Poors Downgrades US Debt
FullCameo
Posts: 492
FullCameo
Posts: 492
FullCameo
Posts: 492
Comments
The timing is not good... but then again, what does one expect??
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<< <i>Well... certainly not a surprise
The timing is not good... but then again, what does one expect?? >>
Yeah the timing... It's expected. If they want to keep their credibility, they had to do it sooner than later.
from CNN Money:
"S&P also cited dysfunctional policymaking in Washington as a factor in the downgrade. "The effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges."
The US takes in $3 trillion a year, owes $ 14 trillion in debt and promised $60 trillion in Soc Sec and Medicare obligations so the percentages are close, right?
Sounds like AA+ is WAY to generous. I'd consider its closer to junk status right now.
<< <i>Obama can't be in a good "moody" this weekend!!!
from CNN Money:
"S&P also cited dysfunctional policymaking in Washington as a factor in the downgrade. "The effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges." >>
Don't bother Obama, he's busy hosting his weekend hip-hop party!!!
If they had credibility, it seems this issue would have surfaced earlier- perhaps years earlier
Experience the World through Numismatics...it's more than you can imagine.
I say, sit back and watch the spin this weekend.
"If I owe you $100,000, you own me; but if I owe you $100,000,000, I OWN YOU!"
By that logic, if the USA "owes" $15 TRILL (and counting), "we" own "them"
No one, but no one, wants the USA to default on that debt.
And it won't
Liberty: Parent of Science & Industry
sounds a bit like "prognosis negative"
US Consumers personally owe $2.4 trillion as of the end of June's estimates.
Coin's for sale/trade.
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Neither is my choice. I want to vote out both parties. But I'm thinking that's not going to be possible eligible candidate-wise.
roadrunner
<< <i>"W"s fault, no wait, Tea Party's fault.
I say, sit back and watch the spin this weekend.
No worries....at least Obamacare will save us lots of money on our healthcare!!!
Pull my 401k now?
EDIT: Has the the U.S. ever been down graded?
<< <i>Wait until S&P tells everyone the US is on double secret probation as well.
roadrunner >>
The USA at AA+ is probably a much better risk than Great Britain at AAA. And making a comparison to Spain with a AA rating is just plain stupid. Spain will be BB within 12 months.
Knowledge is the enemy of fear
<< <i>Not really a surprise. Hopefully it wakes up J6P and the idiots in DC.
The USA at AA+ is probably a much better risk than Great Britain at AAA. And making a comparison to Spain with a AA rating is just plain stupid. Spain will be BB within 12 months. >>
What is stupid is below 3% for ten year U.S. bonds. equivalent bonds in Spain are pushing 7%, and that seems low too.
Will this wake up bond buyers? Or is that market totally manipulated now, because of the massive QE programs and ripple effects? I vote for the latter.
What is scary is that if the 10 year U.S. bonds go to 7%, which is about average for the 1971 to 2011 period, interest payments on the debt will more than double to over $800 billion a year, or more than a third of current Federal receipts. Is an austerity budget far behind? "They" had every chance to make conscious and well reasoned cuts, but if interest rates rise, it may be forced on them. My thread on Greece, where the far left Socialists passed cuts of up to 30% on government salaries, plus 20% layoffs for their government workers, looks like it is closer to coming here.
Another thing I am struggling with is how socialist Italy can pass a balanced budget, with severe austerity measures, massive cutbacks in government spending, but the more politically conservative U.S. continues to run 30%+ deficits (30%+ of the Federal budget is borrowed money), and can't even try to cut Federal salaries starting at a smallish 5%. Again, the average Federal civilian salary now exceeds $100k, over $125k counting benefits. Average. How outraged would the sheeple be if this was widely known and publicized? Why wasn't this even brought up during budget negotiations? Because Congressional staffers are Federal employees? Probably. So sad.
<< <i>
<< <i>Not really a surprise. Hopefully it wakes up J6P and the idiots in DC.
The USA at AA+ is probably a much better risk than Great Britain at AAA. And making a comparison to Spain with a AA rating is just plain stupid. Spain will be BB within 12 months. >>
What is stupid is below 3% for ten year U.S. bonds. equivalent bonds in Spain are pushing 7%, and that seems low too.
Will this wake up bond buyers? Or is that market totally manipulated now, because of the massive QE programs and ripple effects? I vote for the latter.
What is scary is that if the 10 year U.S. bonds go to 7%, which is about average for the 1971 to 2011 period, interest payments on the debt will more than double to over $800 billion a year, or more than a third of current Federal receipts. Is an austerity budget far behind? "They" had every chance to make conscious and well reasoned cuts, but if interest rates rise, it may be forced on them. My thread on Greece, where the far left Socialists passed cuts of up to 30% on government salaries, plus 20% layoffs for their government workers, looks like it is closer to coming here.
Another thing I am struggling with is how socialist Italy can pass a balanced budget, with severe austerity measures, massive cutbacks in government spending, but the more politically conservative U.S. continues to run 30%+ deficits (30%+ of the Federal budget is borrowed money), and can't even try to cut Federal salaries starting at a smallish 5%. Again, the average Federal civilian salary now exceeds $100k, over $125k counting benefits. Average. How outraged would the sheeple be if this was widely known and publicized? Why wasn't this even brought up during budget negotiations? Because Congressional staffers are Federal employees? Probably. So sad. >>
<<< can't even try to cut Federal salaries >>>
Yep...the solutions to our country's problems are clear and obvious - just a question of getting somebody in the White House with the determination and resolve to get it done. Remember Reagan and the Air Traffic controllers...and what Reagan did? - that's the kind of leader that it's gonna take to get the job done.
I knew it would happen.
<< <i>Wait until S&P tells everyone the US is on double secret probation as well.
roadrunner >>
If its double secret they can only tell the chinese I believe.
Perhaps a call to our elected representatives as to where to start will help guide them in the right direction
Experience the World through Numismatics...it's more than you can imagine.