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

Originally posted by Scytherius
reply to post by burdman30ott6

 

And they made it 100% clear as to why ... they named names ... whose fault is it? GOP and the TeaBags.

TeaBaggery and conservatism is killing America. But the polls are clear. The special elections are clear. 2012 will be the eradication of conservatism. This time ... the 29 million Obama supporters that sat out 2012 will most assuredly not sit this time.

Yeah. Wreckless spending, poor economy managment, lack of leadership had nothing to do with it.

reply to post by iNkGeEk


This situation is so damn tragic, and what really makes it worse is that it was planned out as an 'option' many moons ago.

I love your avatar by the way - sums it up nicely. It's time for a change, methinks.

Mike.

Originally posted by burdman30ott6
Monday's market is gonna be a brutal demonstration of why this country made a woefull series of terrible mistakes in leadership election over the past decade and why "We the People" will be the ultimate losers in the whole game.

I'm not so sure Monday's market will be all that bad.

Look at what happened in the last few days. Global markets drop by 4-5% for no apparent reason. Usually it takes an event or announcement to trigger a fall this large. Then 1-2 days later US sovereign debt gets downgraded?????

Sounds like the news leaked to people in the know who sold down early.

Global markets have dropped between 10-20% this year alone. I reckon this bad news has already been priced in.

"the line it is drawn, the curse it is cast
the slow one now will later be fast
as the present now will soon be the past
the order is rapidly fading
and the first ones now, will later be last
for the times they are a changin' "

Bob Dylan

Yeah, they´re likely to sell bonds and buy stocks. Should be good for a short term pump.

Still, the prospect of rising interest rates ahead is negative for stocks.

Originally posted by lagnar
Is it time to start the "grow it where you eat it" campaign yet?

My hydroponic vegetable garden has a faraday cage, triple-deadbolt, GPS proximity alert system with sentry guns and 1080p HD cameras poised at the driveway. lol

Where's the "like" button...

Last week I placed another large order for non-Monsanto/Evil seeds. The online ordering houses are running out of some pkgs/kits... viable seeds for planting are what I'm converting some small assets to...watch the price of staples in the grocery stores go nuts in the coming months.

Everything I'm about to say is purely personal opinion and is in no way intended to disabuse anyone of their views or feelings. It is said with utmost respect to everyone's opinions and their right to hold and express them. That said, here goes...

I'm sitting here watching this, and it's like watching a train wreck in slow motion.

While estimates and analysis do vary, the debt made up around 300% of our GDP in 1929 before the crash. Today, the debt makes up well over that percentage of our GDP. Granted, there are a lot of mechanisms in place now that weren’t back then, designed specifically to prevent another depression. But that doesn’t mean it’s impossible. Unemployment is rising. We've lost our AAA credit rating with S&P for the first time. S&P is saying that neither side of the recent deficit gridlock was right and that the compromise made doesn't go far enough in resolving the issue even in the mid term, let alone the long term. How bad does our debt have to look before it’s better off to just not hold it anymore? Where is the tipping point? And is our certainty that we aren’t close to it yet so assured that it’s worth risking civilization?

And yet half the country still blames the other half, and one party still blames the other party. One half refuses to cut spending adequately (even in a staggered manner, with job creation as a prerequisite or something else that would prevent the cuts from amounting to just throwing people into the sea to drown.) The other half refuses to raise taxes (even on the extraordinarily wealthy who can definitely afford it and then some.) The ideology their team clings to is all that matters. Nuance, specificity, and realism? They don’t seem to know what those even are.

It’s like watching two angry, incomprehensible monkeys locked in physical combat with one another as they plummet into a whirl pool, failing to see the lifeline being hung down for them to help each other climb to safety before drowning. Or more to the point, like one of the monkeys seeing the lifeline, but using it to try and strangle the other monkey instead of helping each other climb out. All because, “I know my monkey is better than yours!”

Do a simple Google search for the national debt vs our GDP since 1900. Maybe we shouldn’t be scared. But are we sure enough that we can risk it?

Just my two cents. Peace.

reply to post by burdman30ott6

they finally blew us up.

I thought they were blewing it all along, why do you think the finally blew it now?

People have been talking about the state of US economy for a long time, and the decision making of the elected dictators whose only interests are the interests of the rich.

“If the US Government was a family, they would be making $58,000 a year, they spend $75,000 a year, & are $327,000 in credit card debt.

They are currently proposing BIG spending cuts to reduce their spending to $72,000 a year.

These are the actual proportions of the federal budget & debt, reduced to a level that we can understand.”

– Dave Ramsey

www.weatherimagery.com...

How much of the $58,000 goes in interest payments on its credit card bill?

From an April 2011 article, using the 2010 level of debt, about 6% of Federal income is used to make interest payments ($3,480 in the above example).

However, Neill Fergusson (the Harvard Historian) wrote in July 2010

“Because as a debt grows, so the interest payments you have to make on it grow, even if interest rates stay low.

And on current projections, the federal debt is going to be absorbing around 20 percent -- a fifth of all the taxes you pay -- within just a few years.

www.abovetopsecret.com...

It was largely interest payments on borrowed funds that finished off both the British and the Ottoman empires.

If the US top of the world Economy is going down, figure where the rest of us are. We're all going down. I have a strange feeling of fiction.

Originally posted by AboveTheTrees


If the US top of the world Economy is going down, figure where the rest of us are. We're all going down. I have a strange feeling of fiction.

hate to burst your bubble buddy but America hasnt been the top of ANYTHING for the last 10 years.

Well maybe top of the list for moronic waste of money and moronic presidential elections and top nations to start illegal wars and.. you get the picture.

The economic death of America will be felt and mourned by most of the world but we will get over it and move on with our lives. Hope that ego centric national pride and arrogance keeps you warm at nigh and your stomachs full.

The people i feel sorry for are the ones that have been shouting at the tops of their voices that this was coming and all the idiots that called them crazy.. well where are you now????

To my brothers and sisters from across the ocean leave that rotting carcass and come over to Australia start fresh here. Your more than welcome. In fact i have noticed quite a lot of Americans here already.

reply to post by TiM3LoRd


Haha, I can't really recommend Australia to people currently. We've got a Carbon Tax coming in, plus, the people aren't exactly brilliant here and are more akin to people in London at 2AM.

reply to post by David9176

Careful how I answer?

Decrease spending? Sure....when it comes to 2 damned wars we are in that aren't being payed for or our endless military presence around the world...absolutely.....taxpayer subsidies need to be ended, corporate loopholes need to be closed.

BUT....

Cutting programs that help the middle class, elderly, and poor.....NO. Doing that is not only immoral, but completely destructive to our economy.

But, most of all, our trade policies have to change and tariffs need to be increased to create job demand in the united states.

Not with this silly 'increase tariffs to create jobs' stuff again. If you cannot see the folly and naivete of such an approach, I fear for you.

You don't seem to realize that tariffs work both ways.

reply to post by TiM3LoRd


Oh, dont worry. You didnt burst any of my bubbles, I do not use to support my ideas in emotions but in data.

Some figures people may be interested in

GDP (nominal) using 2010 figures

• US - 23.2% of world's GDP
• EU - 25.8% of world's GDP
• China - 9.3% of world's GDP
• Japan - 8.66% of world's GDP

en.wikipedia.org...

Percentage of Global Industry using 2009 figures

• US - 18% of world's manufacturing
• EU - 24.2% of world's manufacturing
• China - 13.8% of world's manufacturing
• Japan - 6.4% of world's manufacturing

Source: Compilation of CIA factbook data and 2009 Wikipedia GDP (nominal) information

reply to post by burdman30ott6


Let it all burn down. What's the point of caring for such fools? Lets rebuild over their ashes and remember just who we are as Americans: Those whom walk over the ashes of great men with evil schemes.

Moody´s will downgrade soon too.

They said earlier in the week that the government needed to stabilize the ratio of debt to GDP (now at 100%) at 73% by 2015 "to ensure that the long-run fiscal trajectory remains compatible with a AAA rating."

Originally posted by mishigas
Not with this silly 'increase tariffs to create jobs' stuff again.

If you cannot see the folly and naivete of such an approach, I fear for you.

You don't seem to realize that tariffs work both ways

Yet China achieves the same effect as tariffs by refusing to allow its currency to float.

By keeping the value of the RMB low, this not only makes Chinese exports cheaper, it also makes foreign imports into China more expensive.

There is no level playing field when it comes to International trade with China.

In 2010

• China exported $365 Billion worth of goods into the USA.

• The USA exported $92 Billion worth of goods into China.

www.uschina.org...

Tariffs against Chinese goods would result in the US being effectively $273 Billion a year better off if all trade with China ceased.

reply to post by David9176


This is the very reason we are in the problem we are in. too much of "it's democrats fault...it's republicans fault". it's both their faults and to be honest IT DOESN'T MATTER WHO'S FAULT IT IS!! what matters is that everyone band together and start working together to fix the problem.

unfortunately that isn't likely to happen. Washington has fallen into playing the blame game instead of figuring out solutions.

beginning of the end.. yes !