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

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posted on Aug, 6 2011 @ 05:02 AM
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Where is Obama? Where is our dear leader? Where is his calm, measured voice? I know it's late in the States, but no word, no briefings, no memos, no leaks, not one gosh-danged word!

Where is his leadership? Where is his responsibility?

Where's Waldo?

Once again, I offer this




posted on Aug, 6 2011 @ 05:03 AM
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reply to post by buni11687
 


I reckon that this is the most important line in that article you posted...


It also suggested a new global reserve currency might be necessary to replace the dollar, a position China has frequently advocated.


China blasts US credit rating

I believe we will see this crop up a lot more often because this is the end result here.




posted on Aug, 6 2011 @ 05:04 AM
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Truth is, the American people are in debt as soon as they receive a dollar in their pocket! The reason why (and it should be quite well known by now) is due to the US government not being the controller of the people's own national currency. With the private cartel, known as the FED, owning the national currency of America, the American government has to go cap in hand to the FED to borrow money at interest. With this set up, the American people are already in debt, because every dollar in circulation, every dollar about to go into circulation, has to be paid back to the FED with interest.

This alone is not the reason for the S&P's downgrading of US credit, there are obviously a number of other factors involved, but the truth is, as a nation, America no longer as the assets to be triple 'A' credit worthy. America is not alone in this, other triple A rated countries are the same: behind all this is an agenda...and part of that agenda, agreed upon by your own politicians, is the downgrading of America as the only superpower.

Moody and Fitch will probably have to follow suit in the coming days, but if they don't, it will not be because these credit rating companies agree that America is still worthy of its triple A rating (it hasn't been so for years), but that the knock on effect of agreeing with S&P will hit the markets even further. Back room negotiations, pressure, deals and sweeteners, may see Moody and Fitch hold off downgrading until they can no longer do so. Recession is here, not again as a separate recession, but as the same recession from 2008 washing over the country as a second wave, and it will spread around the global markets with equal effect.

Monday looks like it is going to be a very interesting day!



posted on Aug, 6 2011 @ 05:05 AM
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Yep, the congress did us in with all their non stop spending to buy votes. It's the reason we don't need professional politicians that serve more than 1-2 terms and professional lobbying should be a capital offense. Too much spending over the years on stupid stuff and too many deductions to taxes.



posted on Aug, 6 2011 @ 05:08 AM
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Originally posted by JakiusFogg
reply to post by Krusty the Klown
 


For the OP yes, but the downgrade is not the end of this story, nor the begining.


With that I concur.

But it is the beginning, the beginning of the US not holding the post of dominant global superpower it has held since the end of WW1.



posted on Aug, 6 2011 @ 05:08 AM
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Let's see, a community organizer with no business skills, or no leadership skills, never ran a state. A Treasurey secretary that doesnt even know how to use Turbo Tax.This just amazes me that the left does not get this.
edit on 6-8-2011 by professornurbs because: (no reason given)



posted on Aug, 6 2011 @ 05:09 AM
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reply to post by beezzer
 


Same as in Europe, all the leaders on Holiday enjoying themselves. Politicians are proving that they are useless when it comes to dealing with the modern day crisis. It's this type of behavior that has led to the downgrade. The markets can't trust these muppets to sort out the situation.



posted on Aug, 6 2011 @ 05:12 AM
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reply to post by burdman30ott6
 


That's a very patriotic statement, but the problem is that if China decided to dump all their holdings of US sovereign debt due to US defiance it would place the US in an even worse financial situation. It would start a run on US debt.

China is starting to wield the influence they have over the US due to China now holding the US' purse strings.



posted on Aug, 6 2011 @ 05:12 AM
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Originally posted by JakiusFogg

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


And has QE merely further kicked the can down the road?

Reinhart & Rogoff study (2009, This time is different: eight centuries of financial folly) throws some light on the probable effects of a banking crisis.

• House prices drop by an average of 35% over a 6 year period (Reinhart & Rogoff, 2009).

• Currently, US house prices have dropped 33% over a 4 year period.

www.independent.co.uk...

• Equity prices drop an average of 56% over 3 and 1/2 years (Reinhart & Rogoff, 2009).

• Using the S&P and Oct 2007 as a benchmark, share prices dropped by 59% within 1 1/2 years.

• The S&P 500 has since recovered but is still 18% below the Oct 2007 level.

www.nyse.tv...

Of course, Quantitative Easings has either helped to negate a banking crisis's effects or just kicked the can down the road.

Reinhart & Rogoff also state that banking crisises cause interest rate spikes. Has the QE so far prevented this from happening?



posted on Aug, 6 2011 @ 05:13 AM
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When you have stupid,greedy people you get stupid,greedy leaders.S&P lowering the nations credit rating is just the end result of this idiom,the real action for me will be DC's reaction to China's demands I have a feeling we may see a bit of saber rattling here.



posted on Aug, 6 2011 @ 05:18 AM
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reply to post by Krusty the Klown
 


Agreed, Although I would say that the transfer of power from the British Empire to the US Empire didn;t fully occur until after the end of WW2. Although that is just semantics!!



posted on Aug, 6 2011 @ 05:20 AM
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Originally posted by woodwardjnr
reply to post by beezzer
 


Same as in Europe, all the leaders on Holiday enjoying themselves. Politicians are proving that they are useless when it comes to dealing with the modern day crisis. It's this type of behavior that has led to the downgrade. The markets can't trust these muppets to sort out the situation.

I know.

I was just hoping against hope that a slim sliver of leadership might emerge.
When you temper metals, it becomes steel.
When you try the same with pasta, well, the results aren't as satisfactory.



posted on Aug, 6 2011 @ 05:22 AM
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The sound bites for the sheeple have started just now on Sky News and "economist just said"

Downgrade no real big thing

QE is a good thing

Now QE is just chasing the problem

Won't see a complete collapse of the EU, bit if we did we might see more likely inflation rather than "another depression"

The political styles answers were brilliant. And I think he was just trying to be brave, but then I could just be overly pessimistic!!



posted on Aug, 6 2011 @ 05:25 AM
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Originally posted by Krusty the Klown
But it is the beginning, the beginning of the US not holding the post of dominant global superpower it has held since the end of WW1.


Besides the debt, what is at stake is the US's abiltly to trade dollars with the rest of the world for real goods and services.

Think of US dollars as being cheques that never get cashed. They get deposited in central banks around the world as international currency reserves and also used in ever increasing international trade.

If the US dollar loses its reserve currency status, central banks will no longer deposit as many US dollars, nor will the US dollar be used as much in international trade.

In other words, instead of the US being able to trade cheques which are never cashed (US dollars) for real goods and services, the rest of the world will demand real goods and services.

The US standard of living will take a real hit. Inflation will also rocket due to the dollars previously used in international trade flowing back to the US looking for something to buy.



posted on Aug, 6 2011 @ 05:29 AM
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Originally posted by burntheships
reply to post by burdman30ott6
 


What?

Suprise!!! Hoodwinked again!

I thought this was the reason for the Super Congress?

Remember, Obama pleaded....


With the clock ticking, Obama warned of the dire consequences of failing to raise the debt ceiling and said the U.S. is in danger of losing its AAA credit rating over political squabbling.

“We could lose our country's AAA credit rating; not because we didn't have the capacity to pay our bills -- we do -- but because we didn't have a AAA political system to match our AAA credit rating,” he said.blogs.abcnews.com...



You mean to tell me that the Super Congress creation failed already...in premise?




Problem - Reaction - (fake) Solution

textbook



posted on Aug, 6 2011 @ 05:37 AM
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Originally posted by JakiusFogg
The sound bites for the sheeple have started just now on Sky News and "economist just said"

Won't see a complete collapse of the EU, bit if we did we might see more likely inflation rather than "another depression"



Surely this downgrade is good news for the EU?

Due to the downgrade of the US, surely more money will be invested in the EU government bond issues?





edit on 6-8-2011 by ollncasino because: spelling



posted on Aug, 6 2011 @ 05:38 AM
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It seems that Mr did another public address.

From what I saw his plans are

1, Cuts taxes to people have more money to spend
2, Increase public spending to help people with no jobs.

read

less money coming in more money going out

all paid for by, increased trade in Asia and South America, which is unrealistic as the Made in the USA products are expensive to start with and will be made more so by high import duty tariffs by the importing country

sound bite sound bites sound bites!!

oH LORDY!!



posted on Aug, 6 2011 @ 05:38 AM
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reply to post by ollncasino
 


I don't think I can agree with you there when you say that $US are cheques that can never be cashed. That is the actual issue here. They are just worth less than they used to be, they can just be cashed for less than before.

$US are being downgraded from a reserve currency because they don't have the security they have been perceived for for the last 90 years, before that it was the British Pound.

Maybe the next reserve currency will be the Yuan.

Or maybe the reserve currency the World Bank has been advocating for years now.



posted on Aug, 6 2011 @ 05:39 AM
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reply to post by ollncasino
 


Possible, although I feel at lest for the moment the smart money will be moving out of debt and into hard assets.



posted on Aug, 6 2011 @ 05:40 AM
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reply to post by Krusty the Klown
 


Three words - Special Drawing Rights.



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