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

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posted on Aug, 6 2011 @ 04:32 AM
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reply to post by burdman30ott6
 


You get what you VOTED for.




posted on Aug, 6 2011 @ 04:33 AM
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reply to post by burdman30ott6And so it begins. The lesson that should be learned in all this is that you cant be all things to all people. A house built with rice paper will dissolve when it rains. And the sad part about the whole thing is the we shouldnt be in this boat. If they lived by grandmas advice and that is you shouldnt spend what you dont have. How can something so simple be so hard. Wake up America.
 



posted on Aug, 6 2011 @ 04:36 AM
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The past few days have been quite....not so good.

I dont know how bad this will all turn out to be, but I have a feeling another recession (as if we even got out of the last one LoL !) is right around the corner.

‘Optimism index’ suggests recession is here

Speaking about the Investors Business Daily Economic Optimism Index dropping....

It dropped 13.5%, representing the lowest point in its 10 year history


Not surprisingly, a reading that low suggests another recession is on the way


This was before the credit was stripped


“The poll is a validation of the dark economic picture we’re all seeing,” Mayur said, speaking before S&P stripped the U.S. of its coveted AAA credit rating. “It may get better, but it’s not just going to jump up and look good again. … When there are big movements of five or six points, and historical lows on the optimism index, that has always said something. What it is saying right now is that the risks of a recession are elevated, that we’re either in one or about to be.”



Not only was IBD’s overall index at historic lows, but all three of its key components — the six-month economic outlook, the personal financial outlook and confidence in federal policies — are at historic lows. Every single demographic group polled, 21 in all, showed an increasing level of pessimism over the economic outlook.

edit on 6-8-2011 by buni11687 because: (no reason given)



posted on Aug, 6 2011 @ 04:38 AM
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Originally posted by JakiusFogg

Don't worry, I dont mean you specifically. and I certainly wasn't judging you. so don't' feel persecuted Just on the last 11 pages there is a lot of "its all Obama fault, no it GWB fault, not its the GOP or the Tea party" and it's a little pointless now, do you not agree?

When really its everyones fault in all the world not just the US.



If it is anyone's fault, it's the bankers. Due to the bailout and the collapse of the banks

• Government debt has ballooned to prop up the banks

• Tax receipts have dropped due to the recession the banks caused

Yet the bankers are still paying out huge bonuses to themselves.

Go figure.



posted on Aug, 6 2011 @ 04:41 AM
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reply to post by ollncasino
 


And how about your average person, who is now mortaged up to the hilt and maxed out on credit. Buying even more as the interest rates have been low for the last 2 years. What effect now.

Yes the government finances are bad. but so is thise of the people. and that will only exacerbate the situation.

IMO it's everyone's fault, for being just a a little naive and spend happy.



posted on Aug, 6 2011 @ 04:44 AM
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Originally posted by burdman30ott6
The real problem is nobody is in charge of the US except for the corporate donors who buy and sell representative's votes (from both parties).


And that is so blatantly obvious to the rest of the world that it is just ridiculous. It is one of the reasons that so many distrust the US.



From a legalese standpoint, the Democrats control the Senate and presidency, so they lead the GOP 2-1 in the DC power department. Further, Obama stated numerous times that he would veto the GOP plan that would have cut 4+ trillion off the debt over 10 years. Believe me, there's plenty of blame to go around the beltway.


I'll take your word on that, it sounds like I need to do my homework on how your political system works.

Coming from a country that uses the Westminster system of politics, who is in charge of the lower house is in charge of the country, it sounds different in the US.



posted on Aug, 6 2011 @ 04:44 AM
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Originally posted by bone13
reply to post by burdman30ott6
 


You get what you VOTED for.


When the system changed to one in which you had a choice between Turd A and Turd B and laws were enacted to prevent anything other than those two turds from being counted on the ballots, "you get what you voted for" flies out the window. The USA essentially has to choose every 4 years between Kang and Kodos.

Added value: I didn't vote for Obama or Lisa Murkowski (the nothing from Alaska), so I did not get what I voted for.



posted on Aug, 6 2011 @ 04:44 AM
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OK, it has started.

China is demanding that the US address the debt situation.

As the majority shareholder in the US, I totally agree that China has a right to demand this in order to try and protect their investments.

Result, they will be selling bonds company market open.

But its OK, France has total confidence in the US economy!! hahahahahah!

And so it starts!!
edit on 6/8/2011 by JakiusFogg because: (no reason given)



posted on Aug, 6 2011 @ 04:49 AM
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Originally posted by JakiusFogg
IMO it's everyone's fault, for being just a a little naive and spend happy.


That's not quite fair.

Its not the consumer who is at fault here.

This is a sovereign debt issue. Overspending by the government is the problem here. Not overspending by the populace at large.



posted on Aug, 6 2011 @ 04:49 AM
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reply to post by JakiusFogg
 





OK, it has started.

China is demanding that the US address the debt situation


China blasts US over credit rating downgrade


BEIJING (AP) — China, the largest foreign holder of U.S. debt, demanded Saturday that America tighten its belt and confront its 'debt-addiction' in the wake of the Standard & Poor's decision to downgrade the U.S. credit rating from AAA.



Xinhua said the U.S. must slash its "gigantic military expenditure and bloated social welfare costs" and accept international supervision over U.S. dollar issues.


This is going to be an interesting weekend....



posted on Aug, 6 2011 @ 04:50 AM
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Holders of US mortgage debt are leveraged about 20-1 so they may even last as long as October.



posted on Aug, 6 2011 @ 04:51 AM
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Originally posted by burdman30ott6

Originally posted by bone13
reply to post by burdman30ott6
 


You get what you VOTED for.


When the system changed to one in which you had a choice between Turd A and Turd B and laws were enacted to prevent anything other than those two turds from being counted on the ballots, "you get what you voted for" flies out the window. The USA essentially has to choose every 4 years between Kang and Kodos.


LOL, best post in the thread so far.......



posted on Aug, 6 2011 @ 04:52 AM
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reply to post by Krusty the Klown
 


No? so when the banks start foreclosing on houses due to non payment because the interest rates go up (back to where they were 2 years ago, that's not the fault of the people who like the government borrowed more than they could afford.

It is part of the same package my freind, that is what is making this whole thing so damn scary. It's not just US issue, but it is the same thing all over the world.

Everyone got drunk on credit, cheap credit, and not its time for the hangover!



posted on Aug, 6 2011 @ 04:52 AM
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reply to post by JakiusFogg
 


Wow, you're a smart cookie. If i had some there are moves i'd be making Mon am simple based on your post here at ATS. I'd be moving everything i had into gold for the foreseeable future and then when the market tanks again, then i'd go back, all in for the long haul.

The tightening of credit to shrink the supply of money is always the first sign, and as you've pointed out, that has to happen now to save the dollar along with the self interests of the Federal Reserve Bankers. The writing is on the wall.



posted on Aug, 6 2011 @ 04:55 AM
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reply to post by buni11687
 


I remember reading that the US Federal budget has a 40% weighting to defense. Someone please correct me if I am wrong.

The problem if the US decreases its spending on defense is that the recipients of the spending are US defense contractors and military payrolls.

So if they decrease their defense spending they will initiate a recession.

But maybe that's what the Chinese want.

A weaker US economy and a weaker US military.



posted on Aug, 6 2011 @ 04:56 AM
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Originally posted by youdidntseeme
The AAA rating was only lost by the S&P.


Ratings agencies Moody's and Fitch both maintained the U.S.'s AAA credit rating following the debt deal.


source

Not by any means trying to downplay the severity of the S&P loss, but felt it was imprtant to the entire conversation to mention this fact.


Moody's threatens also to change the AAA rating into an AA rating. Moody's hasn't done it yet, but they have said already that itis well possible to downgrade the rating in the coming months.

In my own opinion the Triple-A status was indeed to high. The USA has a huge deficit and that deficit is rapidly growing further. The agreement of last week was simply not enough (only cutting 2.4 trillion, where cutting more than 4 trillion was required).

An AA+ rating is not that bad yet, but it will possibly downgrade further. Especially if the economic growth will go down or if the world will go down into a new recession (something that is likely to happen, if you look to the newest economic data). At least this downgrade will ensure that there will be a continues fear in the financial markets. And that's bad news.

Who is responsible for this ? In my own opinion both Bush as well as Obama. Bush with all his tax cuts for the rich and his endless wars. Obama had the problem that he faced a deep economic crisis, but in his first to years he should already have cut spending. He didn't do that and instead he increased spending with stimulus packages (and they didn't work that well). Now it is already a bit late to cut spending.



posted on Aug, 6 2011 @ 04:57 AM
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Originally posted by buni11687

Xinhua said the U.S. must slash its "gigantic military expenditure and bloated social welfare costs" and accept international supervision over U.S. dollar issues.



...and on top of everything else I have said, even with me facepalming right and left over the idiocy of the US government, I proudly and without hesitation raise both middle fingers to China for assuming that they have any say whatsoever in the operations of the United States. They can take their little red army and their little red flag and stick where the glow from the dragon's fire doesn't shine. I'm sure they would love to see the US cripple the millitary's budget to prevent them (China) from driving themselves into the poorhouse to keep up ala the USSR, who was the last nation on Earth to attempt to out millitary the USA. IMO, Xinhua must shut their mouth and accept the fact that they have zero say in this. Much more inane ramblings from them and I would hope to see massive tarriffs placed on Chinese imports by the US government (which would actually go a long way towards resolving the debt crisis anyway.)



posted on Aug, 6 2011 @ 04:58 AM
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Originally posted by JakiusFogg
reply to post by Krusty the Klown
 


No? so when the banks start foreclosing on houses due to non payment because the interest rates go up (back to where they were 2 years ago, that's not the fault of the people who like the government borrowed more than they could afford.


In that scenario then the mortgage holders must shoulder some of the blame.

What I am saying is that the blame for the title of the OP squarely rests on successive US federal administrations, not the average consumer.



posted on Aug, 6 2011 @ 04:59 AM
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reply to post by NewAgeMan
 


Indeed, and it is the long haul now we need to be looking at. IMO we all should have been looking at since 2009.

Strange isn't it that in 1929 the market collapsed, but the real effects with the banks didnt start until 1931.

This is the article I referred to earlier. Sounds familiar doesn't it? As I said, 3 years too late


Exactly 80 years ago, international capitalism stood on the verge of meltdown. The collapse of the banking system in the summer of 1931 sent shockwaves through Europe, bringing governments to their knees and thousands out onto the streets. In the United States, an increasingly careworn president and his congressional critics fought a bitter battle over government spending and tax rises.


Daily Mail


edit on 6/8/2011 by JakiusFogg because: (no reason given)



posted on Aug, 6 2011 @ 05:01 AM
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reply to post by Krusty the Klown
 


For the OP yes, but the downgrade is not the end of this story, nor the begining. We can discuss the reason and who is to blame, but really I feel the smart people are now looking, or have been looking at how to weather this storm!

I am not pointing fingers, I am looking at how to protect my family.



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