United States Credit Rating Downgraded Again From AA to A+

reply to post by mnemeth1


Sorry, but this is a storm in a tea cup.

This credit agency is just part of a economic war of words with China.

No other agencies will follow suit.

Mark my words, this is BS Chinese propaganda.

Evidently DaGong downgraded USA (and Britian) back in July. Take a read.

China gets an upgrade to AA+ - alongside Germany. The US and Britain, which are given AA and AA- respectively for their budget deficit problems are downgraded from the top-rated AAA rating they normally enjoy from Western CRAs. Dagong saves its own AAA rating for the likes of commodity-rich Australia, Norway and New Zealand.

www.thefirstpost.co.uk...

Also, recently on Conspiracy Theory (11/5), Jesse talks with wallstreet insiders who speak about USA being given a downgrade and how that will ultimately seal the deal for us. And the only people who are going to profit from all this will be Goldman Sachs and the hidden few. It really is only a matter of time.

reply to post by mnemeth1


Actually, the Canadian economy is in a FAR better position than the US economy. Percentage of deficit to GDP is way, way lower, and debt as a ratio of GDP is also way, way lower, and unemployment in Canada, while not spectacularly lower, is certainly not close to the almost 10% in the USA.

Fed Chairman Bernanke and the head of the IMF have both said that of all the countries in the G20, Canada is poised to come out of the worldwide recession first, strongest, and far better off than we were before it all started, out of all the developed nations. Our exports are a commodities based economy (oil, gold, diamonds, uranium etc) and the price of these just keeps going up as they are seen as stable investments. While we have a minority government, the leading opposition party is in such a complete mess that it's seen as relatively stable.

Our banking laws here are quite strict, and while at the time the whole derivatives market was starting up the major banks here were all whining and complaining about not being allowed to take part (or only in a VERY limited capacity) in this ridiculous strategy, now they're all laughing at the banks in the other countries as Canadian banking exposure was limited at best due to sound banking restrictions already in place in Canada.

The USA is in a far worse financial hole than ANYONE is saying, especially when exposure to derivatives is factored in to the banking system, and the proverbial brown stuff will have to hit the round twirly thing in the USA probably sooner rather than later, especially if your politicians can't agree on measures needed to fix your problems.

I agree, the Federal Reserve deserves an A+ for fraud.
Audit pending.....?

Originally posted by flamingmonkey
reply to post by mnemeth1

 

Sorry, but this is a storm in a tea cup.

This credit agency is just part of a economic war of words with China.

No other agencies will follow suit.

Mark my words, this is BS Chinese propaganda.

Or a pointed warning.


I think the Chinese have been preparing quite well to cut their losses in the event the US becomes incapable of paying back the debt. From what I'm seeing, this election won't change much. Gridlock, at any other point in our history would have been a wonderful thing. But we need government to cut down, but my guess is they won't, they'll raise taxes, and prices will continue to go up. Wages will stay stagnant and all of this will culminate in margin collapse. Then the layoffs will come and the real depression will begin. And this is without China cutting down our rating in earnest at the People's Bank of China. Then the run on the dollar will accelerate and we'll be swimming in a sea of crap green paper.

Prices are already going up, especially in food. Food companies are complaining of margin squeeze because they know their customers won't be able to afford higher prices. They will either let people go, or raise prices. Letting people go will abate the problem for perhaps a month or two. but the rate of inflation in the commodities market will out pace the ability of companies to control costs in an environment where people can't afford their goods. So the prices will begin to barrel out of control. Businesses will shutter, we will be left jobless.

Margin collapse across the board is what will cause this depression. With or without China the economy will collapse, and the currency will die. We did this largely to ourselves, and now we're politically locked to our fate.

Originally posted by projectvxn
We did this largely to ourselves, and now we're politically locked to our fate.

Too true.

There will be no political changes until there is chaos.

Even if a 1000 Ron Paul carbon-copies got elected to congress in 2012, I believe it is too late.

I think we will see an implosion before the 2012 election cycle.

reply to post by mnemeth1


I guessing this will be the case as well. I'm buying silver right now because I can't afford gold. I'm also buying rice, beans, potatoes, pasta and a bunch of other provisions to the tune of several lbs. I have plenty of ammo to hunt and defend with, I recommend that if you haven't already, you'd better start now before you're priced out pf preparation.

Moody's just upgraded China's credit rating in response to Dagong's downgrade of the US.

ZH reports

Not even 48 hours after Dagong dared to tell the truth about America's sad state of affairs (again) and downgraded the developed world's most insolvent nation for the second time in half a year, Moody's has confirmed that in the creditor-debtor relationship, it is the latter who wears the kneepads. As of a few hours ago, Moody's has upgraded China from A1 to Aa3. The reason cited: "we need China to keep buying our debt" - well, not really, we have the Fed to do that, and in 2 weeks, China's top holding of US paper will be a distant memory. But the last thing the US needs is to piss off the one country whose security dump could be too big even for the Fed to monetize. Ergo: throw Moody's in the wolves' den. After all nobody respects, cares or in any way pretends to even listen to the disgraced and Wells Noticed rating agency (speaking of which, whatever happened to that Wells Notice?).