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S&P Downgrades US To AA+, Outlook Negative - Full Text
United States of America Long-Term Rating Lowered To 'AA+' On Political Risks And Rising Debt Burden; Outlook Negative
We have lowered our long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term rating.
We have also removed both the short- and long-term ratings from CreditWatch negative.
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.
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.
Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon.
The outlook on the long-term rating is negative. We could lower the long-term rating to 'AA' within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.
Rating Action
On Aug. 5, 2011, Standard & Poor's Ratings Services lowered its long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA'. The outlook on the long-term rating is negative. At the same time, Standard & Poor's affirmed its 'A-1+' short-term rating on the U.S. In addition, Standard & Poor's removed both ratings from CreditWatch, where they were placed on July 14, 2011, with negative implications.
The transfer and convertibility (T&C) assessment of the U.S.--our assessment of the likelihood of official interference in the ability of U.S.-based public- and private-sector issuers to secure foreign exchange for debt service--remains 'AAA'.
Rationale
We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process. We also believe that the fiscal consolidation plan that Congress and the Administration agreed to this week falls short of the amount that we believe is necessary to stabilize the general government debt burden by the middle of the decade.
Our lowering of the rating was prompted by our view on the rising public debt burden and our perception of greater policymaking uncertainty, consistent with our criteria (see "Sovereign Government Rating Methodology and Assumptions," June 30, 2011, especially Paragraphs 36-41). Nevertheless, we view the U.S. federal government's other economic, external, and monetary credit attributes, which form the basis for the sovereign rating, as broadly unchanged.
We have taken the ratings off CreditWatch because the Aug. 2 passage of the Budget Control Act Amendment of 2011 has removed any perceived immediate threat of payment default posed by delays to raising the government's debt ceiling. In addition, we believe that the act provides sufficient clarity to allow us to evaluate the likely course of U.S. fiscal policy for the next few years.
The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements, the containment of which we and most other independent observers regard as key to long-term fiscal sustainability.
Our opinion is that elected officials remain wary of tackling the structural issues required to effectively address the rising U.S. public debt burden in a manner consistent with a 'AAA' rating and with 'AAA' rated sovereign peers (see Sovereign Government Rating Methodology and Assumptions," June 30, 2011, especially Paragraphs 36-41). In our view, the difficulty in framing a consensus on fiscal policy weakens the government's ability to manage public finances and diverts attention from the debate over how to achieve more balanced and dynamic economic growth in an era of fiscal stringency and private-sector deleveraging (ibid). A new political consensus might (or might not) emerge after the 2012 elections, but we believe that by then, the government debt burden will likely be higher, the needed medium-term fiscal adjustment potentially greater, and the inflection point on the U.S. population's demographics and other age-related spending drivers closer at hand (see "Global Aging 2011: In The U.S., Going Gray Will Likely Cost Even More Green, Now," June 21, 2011).
Standard & Poor's takes no position on the mix of spending and revenue measures that Congress and the Administration might conclude is appropriate for putting the U.S.'s finances on a sustainable footing.
The act calls for as much as $2.4 trillion of reductions in expenditure growth over the 10 years through 2021. These cuts will be implemented in two steps: the $917 billion agreed to initially, followed by an additional $1.5 trillion that the newly formed Congressional Joint Select Committee on Deficit Reduction is supposed to recommend by November 2011. The act contains no measures to raise taxes or otherwise enhance revenues, though the committee could recommend them.
The act further provides that if Congress does not enact the committee's recommendations, cuts of $1.2 trillion will be implemented over the same time period. The reductions would mainly affect outlays for civilian discretionary spending, defense, and Medicare. We understand that this fall-back mechanism is designed to encourage Congress to embrace a more balanced mix of expenditure savings, as the committee might recommend.
We note that in a letter to Congress on Aug. 1, 2011, the Congressional Budget Office (CBO) estimated total budgetary savings under the act to be at least $2.1 trillion over the next 10 years relative to its baseline assumptions. In updating our own fiscal projections, with certain modifications outlined below, we have relied on the CBO's latest "Alternate Fiscal Scenario" of June 2011, updated to include the CBO assumptions contained in its Aug. 1 letter to Congress. In general, the CBO's "Alternate Fiscal Scenario" assumes a continuation of recent Congressional action overriding existing law.
We view the act's measures as a step toward fiscal consolidation. However, this is within the framework of a legislative mechanism that leaves open the details of what is finally agreed to until the end of 2011, and Congress and the Administration could modify any agreement in the future. Even assuming that at least $2.1 trillion of the spending reductions the act envisages are implemented, we maintain our view that the U.S. net general government debt burden (all levels of government combined, excluding liquid financial assets) will likely continue to grow. Under our revised base case fiscal scenario--which we consider to be consistent with a 'AA+' long-term rating and a negative outlook--we now project that net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 79% in 2015 and 85% by 2021. Even the projected 2015 ratio of sovereign indebtedness is high in relation to those of peer credits and, as noted, would continue to rise under the act's revised policy settings.
Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act. Key macroeconomic assumptions in the base case scenario include trend real GDP growth of 3% and consumer price inflation near 2% annually over the decade.
Our revised upside scenario--which, other things being equal, we view as consistent with the outlook on the 'AA+' long-term rating being revised to stable--retains these same macroeconomic assumptions. In addition, it incorporates $950 billion of new revenues on the assumption that the 2001 and 2003 tax cuts for high earners lapse from 2013 onwards, as the Administration is advocating. In this scenario, we project that the net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.
Our revised downside scenario--which, other things being equal, we view as being consistent with a possible further downgrade to a 'AA' long-term rating--features less-favorable macroeconomic assumptions, as outlined below and also assumes that the second round of spending cuts (at least $1.2 trillion) that the act calls for does not occur. This scenario also assumes somewhat higher nominal interest rates for U.S. Treasuries. We still believe that the role of the U.S. dollar as the key reserve currency confers a government funding advantage, one that could change only slowly over time, and that Fed policy might lean toward continued loose monetary policy at a time of fiscal tightening. Nonetheless, it is possible that interest rates could rise if investors re-price relative risks. As a result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in 10-year bond yields relative to the base and upside cases from 2013 onwards. In this scenario, we project the net public debt burden would rise from 74% of GDP in 2011 to 90% in 2015 and to 101% by 2021.
Our revised scenarios also take into account the significant negative revisions to historical GDP data that the Bureau of Economic Analysis announced on July 29. From our perspective, the effect of these revisions underscores two related points when evaluating the likely debt trajectory of the U.S. government. First, the revisions show that the recent recession was deeper than previously assumed, so the GDP this year is lower than previously thought in both nominal and real terms. Consequently, the debt burden is slightly higher. Second, the revised data highlight the sub-par path of the current economic recovery when compared with rebounds following previous post-war recessions. We believe the sluggish pace of the current economic recovery could be consistent with the experiences of countries that have had financial crises in which the slow process of debt deleveraging in the private sector leads to a persistent drag on demand. As a result, our downside case scenario assumes relatively modest real trend GDP growth of 2.5% and inflation of near 1.5% annually going forward.
When comparing the U.S. to sovereigns with 'AAA' long-term ratings that we view as relevant peers--Canada, France, Germany, and the U.K.--we also observe, based on our base case scenarios for each, that the trajectory of the U.S.'s net public debt is diverging from the others. Including the U.S., we estimate that these five sovereigns will have net general government debt to GDP ratios this year ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at 74%. By 2015, we project that their net public debt to GDP ratios will range between 30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at 79%. However, in contrast with the U.S., we project that the net public debt burdens of these other sovereigns will begin to decline, either before or by 2015.
Standard & Poor's transfer T&C assessment of the U.S. remains 'AAA'. Our T&C assessment reflects our view of the likelihood of the sovereign restricting other public and private issuers' access to foreign exchange needed to meet debt service. Although in our view the credit standing of the U.S. government has deteriorated modestly, we see little indication that official interference of this kind is entering onto the policy agenda of either Congress or the Administration. Consequently, we continue to view this risk as being highly remote.
Outlook
The outlook on the long-term rating is negative. As our downside alternate fiscal scenario illustrates, a higher public debt trajectory than we currently
assume could lead us to lower the long-term rating again. On the other hand, as our upside scenario highlights, if the recommendations of the Congressional Joint Select Committee on Deficit Reduction--independently or coupled with other initiatives, such as the lapsing of the 2001 and 2003 tax cuts for high earners--lead to fiscal consolidation measures beyond the minimum mandated, and we believe they are likely to slow the deterioration of the government's debt dynamics, the long-term rating could stabilize at 'AA+'.
On Monday, we will issue separate releases concerning affected ratings in the funds, government-related entities, financial institutions, insurance, public finance, and structured finance sectors.
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meanwhile the liberal media is trying to discredit s&p by lumping them in with the G.O.P.
http://finance.yahoo.com/blogs/daniel-gross/u-credit-rating-victim-gop-s...
And glen beck is protecting the jewish banking and media empire by blaming all this the commies.
This may be the staw.....everyone sees Congress and Barry not doing a thing to control the crazy spending....this is the result and it will get alot worse I'm afraid.
"Jack Barnes writes : Someone dropped a bomb on the bond market Thursday - a $1 billion Armageddon trade betting the United States will lose its AAA credit rating.
In one moment, an invisible trader placed a single trade that moved the most liquid debt market in the world...."
For real?
http://www.marketoracle.co.uk/Article29477.html
10:00 A.M. Saturday, August 6th - New York Times Article
S&P Downgrades Debt Rating of U.S.
592 reader comments & comments are already CLOSED!
Comments are no longer being accepted. Please submit a letter to the editor for print consideration.
ALL those who have read all of the previous comments to this, the 6th page, before commenting raise your hands.
<looks around>
I see no hands.
Tyler, have you see this?
http://finance.yahoo.com/news/China-flays-US-over-credit-rb-3974888722.html?x=0
The Chinese downgraded the USA a long time ago, therefore, is this really news to anyone who's had even half a finger on the pulse of things for the past few years?
Maybe they've been told to do it in order to hasten the demise of Europe, cos the powers to be were getting fed up with the time it has taken for the Euro zone to do the right thing and be the first to die on their swords.
A 50bp rise in long-term yields is not going to hurt anyone.....not going to scare anyone....why do you think they announced it at night on a Friday after everything is closed? It will be forgotten by Monday after Europe pumps in their own QE Sunday night, then Bernanke does his too.... it is a non-event priced in this week as it leaked out, hence the big drop in stocks this week....I bet they gain it all back in a matter of a few days..
They announced it after the close b/c it would have sent the markets into a tail spin ... do you honestly think they were trying to "bury" it on a Friday night?
G
If you read the news, it was thr white house that persuaded their announcement until after the close.
This is a surprise /not
The cabal that controls money, media and military is driving this concerted effort. To their benefit!
What is their ultimate goal? A one-world leadership and one-world currency which they of course control.
There is nothing left to chance in America, nothing happens by accident because the cabal has controlling positions in every global entity in all matters money, media and military except in China.
The cabal made their fortunes on the battlefield for 3 strong centuries by lending money to both sides and selling weapons and equipment to both sides. The cabal runs or controls the FED, the ECB, the SNB, the BOJ.
Does anyone truly honestly still think for a minute that this downgrade is not part of a greater scheme? Give your heads a shake! You've been had in 1913, 1929 and again in very visibly in 2008. Now you're being lied to and manipulated again in 2011. Nothing is changing, nothing is a coincidence with the cabal.
The only thing each and anyone who is not connected to the cabal, and I suspect that applies to the vast majority here should be considering is how to survive their scheme, how to disconnect from their world order and escape the control of the cabal. Buy a farm, pay cash for it. Have some coins for bartering of gas or diesel and live a happier life than the millions who will end up either in extreme poverty or be ordered to war.
Nothing has changed.
+1776
+ 1913
anything/everything else is about counting how many angels-on-the-head-of-a-pin
Just one moment please...I'm sorry for the delay, my voice recognition circuits are not completely restored, though as you can see they are improving. All systems are functional. There is a small pressure leak in the aft heating unit. It is nothing serious, I can compensate for it by using the redundant units.
The ultimate goal is destruction of the dollar.
Overnight the AMERO will be announced.
Politics will be declared forever over. A one party system
Will be introduced. A super congress that has already been set up.
A arch duke moment will happen. I suspect Obama to get killed.
The terrorist will be blamed on comes ww3 or at least the fall of the middle east.
Even in the Americans will stll be blaming eachother instead of the true culprit thanks to clowns like Glenn Beck and John Stuart
Nobody would sell treasuries, Rates might spike
as jerk knee reaction at the morning, then comeback
down again. This downgrade will have 0 effect on
US debt, markets might gets spooked in the morning,
that be good time to pick up few shares cheap.
Interesting fact, If the taxes on the "richest" Americans were actually doubled it would generate approx. 5% of the current deficit, which leaves 95% of the deficit uncovered. So with all the talk about the rich paying more it covers $50b in a $1.1trillion deficit. Why doesn't someone ask our whiner in chief where the other $1.05 trillion comes from?
MSFT, JNJ, ADP and few more have AAA, G7 have a meeting this weekend, World wide PPT will be working at full force on Monday if need it.
This is rather physiological effect, Moody's and Fitch
still rated US as AAA
I was thinking about this: doesn't the downgrade mean bankers win two ways - more debt (debt ceiling raise) and higher interest rates?
1.28 minutes into this clip Glen Beck tells the Jews that politics is forever over and that 911 sacred the he'll out Americans and they will come running forward to clowns like himself for the TRUTH during the next crisis. These Jews must be thinking what a fucking moran Glenn beck is.
Glenn necks role is to conceal isreals idenity.
That's why these attacks on Soros and vis versa /media matters attacks on Fox!!I. iTS ALL A fucking circus act. http://m.youtube.com/index?desktop_uri=%2F&gl=US#/watch?v=ZHoaXgA99Mk
I knew what "They" were doing over ten years ago when our troops in Iraq were throwing bales of $100 bills to the populace from trucks. Gold has been good to me since my started my gold trading with the long gone BGO in 1995. I only wish I knew what "Their" final goal in all this is.
What's the final goal in all this?
Same as it ever was: GOLD. They plan to parlay their gold to control more wealth than what they'll lose by giving up all their paper assets.
What time does the ES open?
War in Afghanistan down rated to FFF+ ! Latest kill/cost ratio: 1 helicopter, 31 Special Forces, 7 Afghanis's and a total cost of $60 million (not including survivor's benefits) : All for the cost of a $59.99 Chinese RPG ! That's a million to one cost ratio ? Are we getting our money's worth ? Monedas 2011 Down grade that stupid war !
Yes, and Social Security is on the hook for most of it.
Down grade war in Afghanistan to FFF + ! Cost ratio: $60 million cost for helicopter, troop replacements and survivor benefits ! : $60 Chinese RPG ! Million to one cost ratio ! Monedas 2011 We can't afford to win !
BHO looks terrible in this (not that he needed help).
First proposes budget with no cuts (and Democratic Senate rejects 97-0); Then insists on "clean" debt ceiling vote; Then insists ceiling vote must include large credible deficit cuts. Then never proposes a written, CBO scorable plan, so he can just take shots at other plans. Dismal leadership -- clearly leading from behind.
Thru the debate constantly yelling FIRE about the devastaion of not raising the ceiling will bring and the terrible ramifications of jeopardizing a rating downgrade will bring. Ceiling gets raised and markets get whacked. Now his administration saying S&P rating is wrong (arrogance is another of his attributes) and the downgrade doesn't matter much, after spending weeks screaming about the devastation that would come from such.
The guy is a loser, a hack, clueless, series of massive contradictions. He does not know how to lead or effectively run an organization.
And I am not sure he has a clue what is going on the middle east -- just as well, he brings no intellect to the table to impact such -- just more contradictions (ie. invading Libya, etc) -- but that is another topic.
Earlier this week I posted a story from by blog entitled "To America ... Emigrate To Canada ... Fast". Last time I checked, the vote tally was 8-8 but some replies were strongly critical of Canada. I assume this excerpt from above should put much of the debate to rest?
I am reposting here, incorporating AAA ratings loss to see how sentiment has changed over the past week:
----------------
To America ... Emigrate To Canada ... Fast
I love my American friends, family and neighbors. I've spent a lifetime defending them in heated conversations around the world with people who don't share my affection for the land of the free ...
... but my affection has a limit. America is lost on so many levels. Reality TV, Wall Street thieves, divisive politics, poor getting poorer, senseless wars .... and now a complete loss of leadership as political leaders put agendas before the financial security of its citizens.
To My American Friends ... This Is Not A Joke ... Move To Canada. Many high-net worth associates of mine have been inquiring at local Canadian embassies about emigrating to Canada. You should to. Why?
1. Sound Finances. Yes, we have personal debt but it's tied to real assets and reasonable ratios. Hence, why our banks are rated the safest in the world.
1A AAA RATED .... Canada Is AAA Rated (see here) ... America Is Not
2. Universal Health Care - you won't lose your house because you can't pay your medical bills
3. Low Low Low crime rate
4. Most similar culture to the USA on the planet
5. Rich in natural resources to feed a growing planet for the next 100 years
6. We love the NFL and NBA ... MLB not so much
7. Great beer
8. We're cool with different cultures
9. Our media isn't controlled by people that want to keep us in constant fear
10. Our politics aren't driven by rich, self-interested, divisive politicians
Hope to see you here.
Love,
Canada
------------------------------------------
Regards,
George .... The Greek ... From Canada
[To America ... Emigrate To Canada ... Fast]---AGORACOM
Thank you for the kind invitation. Canada has been a good neighbor. And did well to model---in part---the founding principles of the US. (You're welcome.)
When the SHTF, please urge Canadian troops to disobey orders to operate on US soil.
And please, in the aftermath, come live in the US! We hope to have:
1. Reaffirmation of our nation's founding principles and documents.
2. Honest money system based on PMs. No Fed Reserve. No fractional banking.
3. The best healthcare in the world available at your expense and your personal choice.
4. Low crime rate.
5. Rich in natural resources.
6. We love the NFL and NBA.
7. Great beer
8. We're cool with different cultures
9. Our media won't be controlled by people that want to keep us in constant fear.
10. Our politians will still be driven by rich, self-interested, divisiveness. We expect that. That's WHY we have a Constitution---and the rule of law, as well as regular elections. (Somehow, I think Canadian politians are not exempt from human frailty.)
OK, then emigrate to Canada during SHTF phase. I hope America can live up to your list one day, I sincerely do. Until then, it is going to be one hell of a bad ride to get there.
By the way, Canada modeled the founding principles of the UK, not the US. Hence, parliamentary system and no guns.
Best,
George ... The Greek ... From Canada
Hi George.
I hope too we can live up to my list.
I'll give you this: Your list is a reality today. My list is only a hope.
Only a hope. That's why I must decline your kind invitation; I'm staying here to help make that hope a reality again. I'm sure you understand.
My grandfather, a US citizen, served with Canadian forces in WWI. With long and mutual respect, be well. And God Bless.
Godspeed. I speak on behalf of all Canadians when I wish America a speedy return to greatness. We could all use men like your grandfather right now.
Best,
George
there sure is a lot of "don't worry, this will only have a minimal impact on the markets" or "they knew this was coming which is why last week was so shitty" being pushed hard in the media today...which leads me to wonder, given the fact that mainstream economists and govt officials, such as "there is no risk" timmy, have been so staggeringly wrong about pretty much everything else up to this point, that if this just might be one of those "the boss is telling you not to panic, the Titanic is not sinking, so you should defiantly grab a life jacket and shit your pants" moments...
I think you're on to something, there. PS: "staggeringly wrong" = they're fuckin' liars
Now that Americans are waking up to the idea that there are no terrorists,
the media will make terrorists out of commies, and of course people hollding gold.
And the white male who brings you the truth is also a terrorists.
When the only terrorists are the Isreal control over banking and media empire.
Hence George Soros "theory of relextivity" is in fully operational mode.
Help! I am a newbie here and although I have been buying PMs for a few years now, I've only been reading along for the last 6mo. (Buying on the advice of a family member who's been bugging us since $400/oz Au.) I just found out that my parents (sheeple) have $750k in annuity with ING. Can anyone confrm that I should tell them to get out? And, give me some advice on how to convince them?
Thanks!
Good luck with that!
How long did it take your family member to convince you?
I try to tell my loved ones to buy gold all the time and I get treated like a nutjob.
Mom and dad are on a fixed income and I don’t want them eating cat food.
Point taken. And +1 on the nutjob.
And just like every fucking thing else US, it's rigged to the upside. True rating should be B at best.
It’s been very difficult to post because of the ZH server down time. I wanted to comment earlier in this thread but got the big 503. Anyway the question has come up, is the S&P downgrade a tactic being used by TPTB. In other words does TPTB want the downgrade?
The answer is yes, and why you may ask, because TPTB own the MSM and if they didn’t want the downgrade the story would be blacked out like so many stories before. Stories like tungsten for gold and two Japs caught crossing the border from Italy into Switzerland.
Regardless, the news not fit to print will always be found on ZH and I would like to take this moment to thank Tyler and the fight club for being there for us. Everyone lower your heads in silent meditation because prayer is no longer allowed in public……………………………………………………………………………………………………………………………………………………………………………………..
You may now raise your heads.
Monday the shit hits the fan, TPTB want more of that money from the dept rise, OE3 is cooked into the books. All this is VERY bullish for PMs.
I belive Fed can only buy AAA rated securities.
I the AA+ downgrade sticks, Fed won't be able to buy any more Treasury debt.
With Fed unable to buy Treasury debt, the price collapses, yields rise sharply.
It doesn't affect existing Treasury debt, just new Treasury debt. But as existing debt matures and has to be rolled over, the newly issued debt would have the lower AA+ rating, so the Fed can't buy it.
The Fed is about the only purchaser left for Trasury debt, and now they can't buy it.
So raing the debt ceiling is meaningless. There are no buyers for newly issued debt. And maturing debt can't be rolled over either.
This is carastropic for the Treasury. No buyers for their debt.
The federal government is forced to live on tax revenues. They can't do it. It's impossible. They can't live on 60% of their normal expenditures.
This is a true shit-hit-the-fan moment. It could all unwind.
If you flip the cover of the box over you will find the rules for this game.
Paragraph two line three clearly states that the Fed can change the rules at any time they please. You lose!
Tick Tock........Tick Tock.
I think this is finally a Prechter moment. I suspect no amount of QE is going to prevent new bear market lows withing the next year or two. Son of a bitch, it's about time that ABC wave completed.
Here is a concrete case for the first time where the public political infighting translates to dollars and cents cost to the American taxpayer. And all they can do is finger point. Well, stupid pols, point your fingers inward instead of outward in your search for responsibility for this.
I was also impressed that both S&P and Moody's have the gumption to put America on negative outlook as long as this political wrangling continues. The environment that Americans have both created and allowed, that of an ideologically divided nation, now is starting to cost us for the first time, and the costs will likely increase over time until the pols get their shit together and work together instead of against each other. That's la la land I realize, the pols know of no other way to behave. But as long as the people continue to offer them the public service platform to spout the ideological garbage with intransigence and intolerance, others have lost confidence in us and honestly I can't fault them in the least.
What is hilarious is in spite of it all, scared capital continues to flock here in droves driving 10 year yields on Treasuries down in dramatic fashion. For all the bashing the US gets, it's funny the global community still sees fit to invest here in heavy demand.
I'm really worried! If I lose my job, how will I pay my fair share of the banksters debts?
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