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

And some of the above posters still parrot partisan talking points. Do you STILL not get or are you on the disinfo payroll? Both parties orchestrated this debacle. Right and left politicians are in cahoots and sold us out to the billionaires and their corporations long ago and continue doing it. The evidence is in your face yet you still blab on and assist the divide and conquer strategy. People cannot be this thick and use a computer IMO. Something is wrong on ats.

Originally posted by Krusty the Klown
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.

I found the concept hard to get my head around at first.

Think of US dollars paying for imports as a cheque issued by the Queen to a tradesman.

What does he probably do? Frames it and puts it on his wall. It doesn't get cashed.

What has this got to do with the US dollar?

Every year, the volume of international trade in dollars increases. Those dollars needed to allow increased international trade never make it back to the USA. They stay in circulation outside the US.

If central banks around the world also increase their deposits of US Dollars, again, they never make it back to the US.

It has been estimated, that due to the above effect, the boost to GDP is equivalent to half of 1% of GDP per year.

Why do you think Germany & France convinced Sadamm Hussain to trade oil in Euros? Why do you think the US then invaded Iraq? Why were Germany and France so angry?

Why does Iraq now trade oil in US dollars again?

Why was none of this currency shinangins ever reported in the news?

reply to post by burdman30ott6


We cannot reasonably justify spending 100% of GDP in borrowed money to support programs that serve only to cater to the constituencies that keep the spenders in office.

The real question should be what should the US be spending on in the first place:

Defense
Border security
Free trade between the states.

There is nothing in the Constitution that requires the US to pay for much else; the states are supposed to be responsible to their people for the rest.

The US will never regain its pre-eminence until it radically changes its priorities in light of its Constitutional authority and obligations.

Squiggly light bulbs?
Gay marriage?
Creationism v. evolution?
Afordable home morgages?

None of these are the business of the US government, yet we obsess and throw money at problems that we have no business intervening in, in the first place!

The US is going to regress into chaos until we regain our focus and address the issues upon which the Nation
was founded: a proletariat throwing off the tyranny of 'absentee' parasitic rulers.

People need to do for themselves for a change, instead of depending upon "the government" to meet the basic necessities of life.

jw

Originally posted by Krusty the Klown

Maybe the next reserve currency will be the Yuan.

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

Probably, no single currency will be dominant if the US dollar goes down. The US dollar will remain as a reserve currency rather than the reserve currency.

Could the RMB operate as a reserve currency when it doesn't float? I don't know.

The Euro is a big contender for replacing the US dollar. Perhaps that is the reason why the US rating agencies have been doing so much to destroy it?

This move by S&P downgrading the dollar is however, almost certainly, part of a plan that goes right to the top.

We live in interesting times.

Originally posted by JakiusFogg
reply to post by Krusty the Klown

 

Three words - Special Drawing Rights.

And Bingo was his name-o !!!!

I reckon this will become a much more familiar term to the masses in the future.

Seriously, watch the first 10 seconds of this.

This just before it happened. This guy should resign because

1, He lied
or
2, He;'s delusional.

just another step towards, one world currency, one world government and one world leader, the zionists have you all worked out.

On a side note, I'm looking foward to buying some technology goods from America that are soon gonna be dirt cheap, cheers guys.

But, seriously the wealth has to be shared around, lets see some other people in the world be able to afford a decent standard of living, not just Americans. Shame the rich keep getting richer and the poor get pooer as this NWO is put into motion. Can only hope I'm alive to see the zionists publicly stoned.

reply to post by ollncasino

We live in interesting times.

Apparently that is an ancient Chinese curse.

How ironic.

reply to post by ollncasino


In terms of which currency becomes the next reserve currency I reckon it is a battle of the heavyweights and will take probably at least 10 years to become apparent.

It is not something that will be decided overnight but one that will take years to determine. Think we are only 3 years from the GFC compared to 1929 and the Great Depression.

Anyone keeping score on my predictions?
I believe I accurately called this one out.

I'm also waiting for the report that says that U.S. Job Creation data was falsified.

reply to post by ren1999


Where was your prediction?

Originally posted by Jordan River
Attention!!!!!!! I just downgraded my thoughts on OBama, from a B+ to a B

edit on 5-8-2011 by Jordan River because: (no reason given)

I just want to let you know that I loved your comment so much, I'm going to steal it and use it. You get a star from me!

reply to post by JakiusFogg


Read my posts about the economy.
I've laid out the near future for all to see.

There is a risk that people will read too much into this development. It would only be more serious if the other recognised international credit rating agencies followed suit, i.e. Moody, Fitch et al.

Regardless of the credit rating, the US remains rich with an economy significantly larger then China, although slightly smaller than the EU.

As it is customary to compare everyone with China, it is worthwhile to note that the Chinese credit rating (AA-) is still below the revised US rating (AA+) on the Standard & Poor's scale. This means that China remains higher risk. On a practical front, should the US seriously strive to resolve their debt problems we can expect to see an impact on China’s growth as less will be imported and the US will be less slavish (let’s hope so, at least).

It’s not all doom and gloom, unless you take the view that anything to do with international finance is gloomy. Perhaps these developments will help focus the minds of the US politicians.

S&P ratings

Ratings on Wikipedia for comparison

Regards

reply to post by burdman30ott6


You need to specifically say that S&P recommended the downgrade because there was no call for higher revenue taxes in the debt deal.

reply to post by ren1999


Nah man, you have a lot of posts, and I am not trawling through all those to find one particular prediction you made about this. You need to post a link to the precise prediction you are talking about.

Originally posted by galdur
The probability of this deficit cutting deal being just smoke and mirrors with no conviction is 100%.

An annual cut of $240 billion in govt. spending will cost at least 2 million jobs and the private sector is unlikely to absorb this. So, this deal is dead on arrival. They´re not gonna go through with it. It´s just about buying some more time. In a year the credit rating will probably be down to B.

What you fail to note is that the private sector is very often reliant on the public sector for contracts. Few people are going to escape unscathed. I suggest raising taxes on the rich. as well as cutting. There will be pain but those at the top can tighten their belts. Those at the bottom will soon have neither belt nor trousers!

reply to post by Haxsaw



You and I, man. Something has got to give. The situation is untenable as globalization is it's own worst enemy. Without globalization, for example, people in a current impoverished country wouldn't feel capable of living the life Hollywood portrays. Cultural castes and social stigmas are breaking down and will fuel a revolutionary spirit, not one of complacency as the elite expect. Globalization could work if a global middle class were created and poverty eradicated, but of course the elite are too #ing greedy for this to be realized.

I'm going to give you all two world line scenarios and you decide which one we travel on.

The First Scenario
U.S. soldiers come back to the U.S. to contain open domestic terror attacks.
Tent cities rise all over the U.S. but the media remains quiet about the collapse.
We start squatting in houses after the rich flee to France.
We all start farming vegetables in yards that are not our own.
States start to secede from the Union.
Every person in each divided territory is forced to join the military of their territory.
The magnetic poles shift.
The earth starts to get hot.
People start going north to Canada and Siberia.

The Second Scenario
The Republicans give up and allow increased taxes and spending to create building jobs.
Obama hires all the unemployed to work on the roads.
Troops come home from all over the world except Asia.
Minimum wage is increased to meet the cost of living in each area.
The economy recovers.

Another famous Obama Friday after hours news dump.

He was in heated debate with S&P until late in the afternoon, before he headed to Camp David for some more vaycay after a few days of b-day parties.

Yeah, so the already volatile markets wouldn't crash by closing bell on Friday. This gave "those in the know" time to sell, buy, and trade what they needed to before Monday opening bell.

The downgrade, hours after markets closed on Friday

Now, we get to sit and lick the wounds over the weekend and hope the bruises won't be so visible come Monday morning. Time has a way of healing all wounds, right?

Now, we shall see how China and the rest of the world feels come Sunday late into Monday morning.

So now, China becomes the boss of us, the US.

"China has every right now to demand the United States address its structural debt problems and ensure the safety of China's dollar assets," China's official news agency Xinhua said in a commentary, Reuters reported.

And, don't forget, they have a new emergency button on Wall Street. If the markets starts to plummet, they just flip a switch and stop all trading until they deem it "safe" to start it back up again.

The days leading up to Friday were telling, the volatility on the market Friday was telling as well. Insiders took care of theirs, leaving, yet again, the underlings to suffer as our 401's melt into oblivion.

And you think it was just coincidence this came out after closing bell on Friday?

Heh.

The smart thing to do now is to clean any availble funds from your bank account, pay off any credit cards you can, and I hope you have been stocking up at least a little on food, because here comes inflation!

Perhaps this is all an orchestrated event to get what they want through the back door afterall?

"International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country," Xinhua said.[

Here he comes to save the day!!

Referring to a trip Obama has scheduled Aug. 15-17, Bonjean also said, “I would not want to be President Obama on a bus tour through the Midwest listening to Americans who are out of work or had interest rates raised on their loans, or are fearful of economic instability.”