Raptor Witness Posted August 6, 2011 #1 Share Posted August 6, 2011 (edited) Major Doom on now, peeps ... [s&P Downgrades US Credit Rating to AA-Plus] - CNBC 8-5-11 - 9 PM The United States lost its top-notch triple-A credit rating from Standard & Poor's Friday, in a dramatic reversal of fortune for the world's largest economy. S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about growing budget deficits. "The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics," S&P said in a statement. "More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011," the statement said. The outlook on the new U.S. credit rating is negative, the S&P said in its statement, a sign that another downgrade is possible in the next 12 to 18 months .... cont. at link above. Edited August 6, 2011 by Raptor Witness Link to comment Share on other sites More sharing options...
GnomeWatcher Posted August 6, 2011 #2 Share Posted August 6, 2011 eh, our credit rating is still better than 90% of the planet at least. Link to comment Share on other sites More sharing options...
Raptor Witness Posted August 6, 2011 Author #3 Share Posted August 6, 2011 The big question I'm not hearing any of the pundits asking, is .... Doesn't it seem a little odd for the world's reserve currency NOT to be AAA rated? Shouldn't the world's reserve currency be the highest rated possible? Otherwise, it's an oxymoron of enormous proportions. I'm not a gold bug lately, but this rating drop is making me think about it a lot harder, and I'm sure I won't be alone in this. Golden Tortoise Beetle - Charidotella sexpunctata Link to comment Share on other sites More sharing options...
questionmark Posted August 6, 2011 #4 Share Posted August 6, 2011 The big question I'm not hearing any of the pundits asking, is .... Doesn't it seem a little odd for the world's reserve currency NOT to be AAA rated? Shouldn't the world's reserve currency be the highest rated possible? Otherwise, it's an oxymoron of enormous proportions. I'm not a gold bug lately, but this rating drop is making me think about it a lot harder, and I'm sure I won't be alone in this. Golden Tortoise Beetle - Charidotella sexpunctata Gold right now is overvalued. Everybody who gets in now will loose big time. Link to comment Share on other sites More sharing options...
Just Dave Posted August 6, 2011 #5 Share Posted August 6, 2011 US will fall, collapse whatever you want... Obama made a bad solution, problems cant be solved by postponing and increasing them... Like Greece, Italy,Spain, probably us very soon, and probably more.. World economy is collapsing and its too late to save it. In my country they are selling national treasuries, islands, castles, parks,... everythin' is goin' to hell! Link to comment Share on other sites More sharing options...
Habitat Posted August 6, 2011 #6 Share Posted August 6, 2011 Don't worry about it. The new reserve currency is the Zimbabwe Dollar. Makes a millionaire out of anyone ! Link to comment Share on other sites More sharing options...
questionmark Posted August 6, 2011 #7 Share Posted August 6, 2011 Don't worry about it. The new reserve currency is the Zimbabwe Dollar. Makes a millionaire out of anyone ! And to think that Zimbabwe used to be the second most affluent country in Africa... Link to comment Share on other sites More sharing options...
questionmark Posted August 6, 2011 #8 Share Posted August 6, 2011 In related news: US credit rating downgrade prompts warning from ChinaChina, the world's largest holder of US debt, condemned the "short-sighted" political wrangling in the US and said the world needed a new and stable global reserve currency. In a comment article the official Xinhua news agency said China had "every right now to demand the United States address its structural debt problems and ensure the safety of China's dollar assets. International supervision over the issue of US 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. Source Link to comment Share on other sites More sharing options...
Raptor Witness Posted August 6, 2011 Author #9 Share Posted August 6, 2011 In related news: Source I think you're correct. I heard on NPR on Wednesday or Thursday, that they have been calling for a restructuring of debt globally. How, they didn't elaborate, but you can be sure it's something that will be to their benefit first, not the "world." Debt is far easier to monetize when you're the world's reserve currency, because you can spread your money supply around, a whole lot more. Link to comment Share on other sites More sharing options...
ninjadude Posted August 6, 2011 #10 Share Posted August 6, 2011 Keep in mind that this is the same "ratings agency" that rated Lehman brothers and AIG as rock solid investments a month before the investment banking crash of 2008. What they say is classically referred to as BS. Link to comment Share on other sites More sharing options...
questionmark Posted August 6, 2011 #11 Share Posted August 6, 2011 Keep in mind that this is the same "ratings agency" that rated Lehman brothers and AIG as rock solid investments a month before the investment banking crash of 2008. What they say is classically referred to as BS. Who cares what it is, if it gets another 5% off Wall Street there will be 5000 more unemployed at the end of the week. And remember, they are not the first, Egan-Jones downgraded the US on Monday, and they called the Ford downgrade right ahead of everybody else. Link to comment Share on other sites More sharing options...
Raptor Witness Posted August 6, 2011 Author #12 Share Posted August 6, 2011 Keep in mind that this is the same "ratings agency" that rated Lehman brothers and AIG as rock solid investments a month before the investment banking crash of 2008. What they say is classically referred to as BS. That's a good point, but I have heard speculation that these ratings agencies are still smarting from this perception, and it's one big reason why, they may have made this move now. Link to comment Share on other sites More sharing options...
BlindMessiah Posted August 6, 2011 #13 Share Posted August 6, 2011 Keep in mind that this is the same "ratings agency" that rated Lehman brothers and AIG as rock solid investments a month before the investment banking crash of 2008. What they say is classically referred to as BS. Their stupidity doesn't change the fact that they are given global credibility. Link to comment Share on other sites More sharing options...
Oen Anderson Posted August 7, 2011 #14 Share Posted August 7, 2011 If you haven't read the book "The Money Matrix of the New World Order" you should. It explains that the economic crisis is contrived to collapse the currency in the last days of the last month of 2012. The book came out six months before the crash of "08". Much more in the book is yet to come true. Link to comment Share on other sites More sharing options...
Raptor Witness Posted August 7, 2011 Author #15 Share Posted August 7, 2011 (edited) If you haven't read the book "The Money Matrix of the New World Order" you should. It explains that the economic crisis is contrived to collapse the currency in the last days of the last month of 2012. The book came out six months before the crash of "08". Much more in the book is yet to come true. How "contrived" it is by men, I have my doubts. Very few people have put all the pieces of this puzzle together, and believe me, those pieces have yet to be seen by the majority of the people. It is growing more obvious to me that the stimulus game plan never included the entire Middle Class. It was probably too expensive, is why, and that hasn't changed. The American Middle Class has yet to show it's fangs, but by the time this happens, it will already be too late to rescue them. They trusted, but did not verify anything, as Reagan used to say. Edited August 7, 2011 by Raptor Witness Link to comment Share on other sites More sharing options...
ninjadude Posted August 7, 2011 #16 Share Posted August 7, 2011 (edited) Their stupidity doesn't change the fact that they are given global credibility. fighting ignorance starts with a little truth that is communicated. Reminding everyone of their track record is, in my mind, a good thing for thinking people to do to remind those that don't. It may well be that they are smarting from 2008. They should be. In fact, why weren't they prosecuted? Oh right, because we don't have laws that say "ratings" agencies have to tell the truth. Go figure. Edited August 7, 2011 by ninjadude Link to comment Share on other sites More sharing options...
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