All the little children were standing at the side of the road, watching the parade, pointing at the Emperor, laughing and saying out loud, “The Emperor has no Credit!” This has been going on for a long time but the Emperor’s advisers were telling him everything was fine.
Are you surprised and shocked at the S&P downgrade? Tim Geitner and Barak Obama are.
In the words of Good Ol Gomer Pile – “Surprise, Surprise, Surprise!”
Is Obama really surprised?
The Obama Emperor Administration and their surrogates are screaming that S&P made a big mistake. Tim Geitner a little while ago said that there was no possible chance that the U.S. credit would be downgraded.
At this point it is simply perpetual self delusion or flat out lies. Are they that stupid or that dishonest? Perhaps it’s a mixture of both.
The general population has known for years that we can’t keep living beyond our means.
Geitner also said he wouldn’t be firing up the printing presses before Quantitative Easing 1&2. He pulled the surprise on us and printed as if in a counterfeiters fantasy. Trying to print your way out of a recession with unparalleled debt is just plain stupid. Stupid is as stupid does.
We should have know that a Treasury Secretary who didn’t pay his taxes is either incompetent, immoral or perhaps both. Obama, what were you thinking?
It has been evident for a long time that …… The emperor has no credit. They’ve been caught with their financial pants down, messing with the fundamentals of the country. Get your filthy hands off our fundamentals.
Here’s the problem. The U.S. government income (taxes and fees) is much less than the U.S. expenses.
That’s all there is to it.
Countries and companies are have been losing faith in the U.S. governments ability to balance the budget and pay down the debt or stay solvent for some time. S&P just confirmed reality.
Let’s do a family household comparison.
Let’s say that a family of four has roughly an annual income of $46,000.
This household also has had expenses of almost $80,000. They also have not stayed within their means or spent less than they brought in for a long time.
This family has also racked up a debt on their revolving line of credit of $300,000 and is borrowing to make the monthly payments on that debt. They offer no collateral or assets on the loan but are offering a simple full faith and credit of the family household. They ask for you to just trust them.
Question. Would you loan $35,000 loan to this family? Do you trust that this family will someday learn to live within their means and pay down their debts?
This family household example is a rough estimate of the ratios that the U.S. Federal Government is operating under and what the Standard and Poor’s rating agency took into account to find the U.S. government lacking.
S&P would be foolish to continue giving the U.S. a best rating. The argument could be made that they have been derelict in their duty in waiting so long to downgrade the U.S.
There seems to be no shortage or morons out there that blame the wrong source of the problem.
Michael Moore, the inflammatory and distorting entertainer has done just that. He says that Obama should arrest the CEO of S&P. That’s like arresting a bank for denying a loan to someone about to go bankrupt.
One of the congressmen directly responsible for the mortgage debacle, Barney Frank, says that it’s the military’s fault that S&P downgraded. As David Letterman says, “WHAT?!!!”
Other morons like David Assholerod and Coward Dean are blaming the Tea Party for the downgrade. That’s like suing someone for the loss of a leg when all they tried to do was stop the bleeding after the leg was already chopped off.
Congress is simply addicted to buying votes. They don’t want to tell the American public that the gravy train and free lunch is over.
For years, warnings have been raised and ignored.
The idot Congressman Pete Stark of California is a perfect example. See this warning that was raised more than a decade ago and see the treatment the interviewer got from the foolish Pete Stark. Believe it or not, the megalomaniac Congressman is still in office making just as idiotic decisions as ever.
Also today, S&P downgraded the associated Fannie Mae, Freddie Mac,
Depository Trust Co., National Securities Clearing Corp., Fixed Income Clearing Corp. and the Options Clearing Corp.
That means that the pseudo or quasi governmental companies or those backed by the full faith and credit of the United States have less backing. That’s a little like your bodyguard getting his had busted in a fist fight.
There are intelligent solutions to the problem but they are not easily done. It’s tough to undo sausage once it’s made.
There is a reckoning coming. Hell’s a coming unless …………
Greg McIver 