Friday, July 29, 2011

Regardless, the USA AAA is going away!

Regardless of the outcome of the political debt limit dance taking place in Washington, the USA AAA bond rating is going to be going away!

While the Washington version of Ringling Brothers Barnum and Bailey Circus drones on, it is most likely a foregone conclusion that the USA AAA will be fading away into the sunset.

Why then you may ask, if partisan politics are overcome, the debt ceiling is raised and there is no U.S. default, would the USA AAA be lost?

It comes down to two words repeated three times: Government spending, government spending, government spending!

In the book, "This time is different" the authors looked at the past 200 years of global economic history and found that when a country's outstanding sovereign debt is above 90% of that country's GDP, nothing good happens to that country's economy.

Some members of the over 90% debt to GDP club

Japan: 230% AA-
Greece: 125% Ca
Italy: 120% A+

USA: 97% AAA?

USA ratings bottom-line?

Coming to some consensus on what will be an inadequate compromise bill that allows the debt ceiling to be raised while making no real attempts to cut spending or federal deficits in any real way will NOT preserve anything, other than potentially saving the jobs of some members of Congress.

The economic lives and the quality of life for Americans now and into the future hangs in the balance while one of the most disgusting displays of partisan politics that I can remember is being played out in Washington.

Watch, take names and remember in November of 2012!









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3 comments :

  1. what's the story with your tea baggers???

    ReplyDelete
  2. What is the story with you fiscal and economic suicide jockey's?

    ReplyDelete
  3. Look we are going to loose our AAA rating anyway. Being able to borrow more money only means you are a greater risk when you are borrowing to pay not only everyday operating cost but interest on the money you already owe.

    We have to get real the government needs to stop the overspending and quick. If they do not have full payments for the debt them they should sale of assets. There many things they can sale, like the Hope Diamond. Why does our government need to own this or land they have to spend money to take care seal it back or even give it back to the states.

    Some people will say that my idea is a wast of time because it doesn't do enough so why bother. I can only say: every journey starts with the first step and every river starts as a trickle.

    IMPEACH OBAMA NOW! ! ! !

    ReplyDelete

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