U.S. credit rating falling

Michael

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An article entitled " Third World USA: S&P Downgrades US Credit Rating"

The difference between AAA and AA ratings is 0.77 percent. The US has been reduced to AA+. For the sake of argument, let’s say that’s half the difference from AAA to AA or a 0.385 percent change in the interest rate that we have to pay for future borrowing. Let’s assume Obama borrows an additional $2.4 trillion. We’ll have to spend an additional $9.24 billion because of our reduced credit rating.

The US stock market has plunged almost 900 points in the last week, reacting largely to the debt ceiling being raised on Tuesday. The announcement by S&P that the US credit rating was being lowered came out on Friday after trading stopped so we’ll likely be in for a punishing stock market drop on Monday because our government can’t balance its budget.

We have two enormous financial elephants in the living room. One is the deployment of US forces all over the world and what it’s costing us. The other is the US government’s commitment to subsidize a First World lifestyle for 100 million Third World people currently living in the US. We can no longer afford either of these financial black holes. A responsible government would admit its limitations, cut out both of these wasteful expenditures and balance the budget. The Obama regime however is a slave to special interests, including the Israeli Lobby and will keep wasting our money until the day we vote Obama out of power.

http://www.davidduke.com/general/fa...et-causes-us-credit-rating-to-drop_24298.html
 

Colonel_Reb

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As I mentioned in the financial thread, the debt-ceiling issue is far from over. Something is going to have to give before long because the pot is about to boil over.
 

Colonel_Reb

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DixieDestroyer

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Another amazing first for the mulatto jew-puppet. Yes we can. :rip:

Yep. "Yes we can".....destroy the Republic (just as directed by the PTB ma$ters).
 

FootballDad

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And just to think, the PTB were thrilled with the way "W" was busy help drive the economy over the cliff, then Obumma shows up and puts it in overdrive!
 

Highlander

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These "Credit Agencies", including S&P, had AAA ratings for all of those "too big to fail banks", insurance companies, etc. all the way up until they crashed and burned in September of 2008, knowing full well of their financial situation. In other words, they were all part of the ponzi scheme itself.

If you haven't seen it yet, I recommend the documentary that came out a year or so ago called "Inside Job" that goes into depth on all of this. It also shows how nearly all of the Business/Economics Departments of the higher-end Universities in the U.S. have been paid off to support this scheme academically. They have all of the bases covered.

Anyway, Monday should be interesting.
 

Highlander

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Didn't want to create another thread, so posting this here. Great article by Pat.

Fiscal Hawks vs. Security Hawks
by Patrick J. Buchanan 08/05/2011

Yet since Ronald Reagan departed and George W. Bush arrived, that coalition has been under a growing strain that may yet pull it apart and redefine what conservatism means in 21st century America.

Is a free-trade globalism that saw America lose 57,000 factories and 6 million manufacturing jobs in the last decade conservatism?

From Abraham Lincoln to Teddy Roosevelt to Calvin Coolidge, that was once economic treason.

Was invading Iraq, which never threatened us, consistent with conservatism? Was a decade of nation-building in Afghanistan something Reagan would have pursued? These neo-imperial wars would have bewildered our founding fathers.

A new clash is ahead that seems fated to split the right into fiscal hawks versus security hawks. It was scheduled for early 2012 by the debt-ceiling deal forced on Barack Obama by Tea Party Republicans.

That deal cuts spending $900 billion in 10 years, with defense cuts coming in at $400 billion. The Pentagon is already at work.

Beyond that, if the new bipartisan, bicameral deficit-and-debt-reduction super-committee of 12 fails to come up with $1.5 trillion in added spending cuts and/or tax revenues, Congress must vote in 2012 to achieve $1.2 trillion in cuts.

And half of that, $600 billion, must come out of defense.

Can the super-committee avoid these defense cuts by coming up with the $1.5 trillion by Thanksgiving, which would have to be approved in up-or-down votes in both houses by Christmas?

Highly improbable, if not politically impossible.

Consider: Should the super-committee vote for new tax revenue, John Boehner's House would reject it, as the House threatened to shut down the government rather than permit higher taxes in the debt-ceiling deal.

Yet if there are no new taxes in the $1.5 trillion deal, Harry Reid's Senate would reject it, for that would be a second humiliating defeat for the left, fomenting open rebellion against Reid.

Some in Washington are saying the super-committee was set up to fail. Sen. Mitch McConnell has already said no Republican open to higher taxes will be named to the GOP's six-member slate.

Thus, in the first major step in a decade-long drive to roll back Big Government, the Pentagon will likely have to contribute $1 trillion, or 8 percent of anticipated defense spending.

And this is only the beginning. For even after the debt-ceiling deal, projected deficits are so huge that a downgrade of the U.S. debt rating and eventual default, even if done through inflation and depreciation of the dollar, seem certain.

Thus, fiscal reality is about to force upon the neocons and national security Republicans like John McCain decisions they have been avoiding since the Cold War.

Eventually, this day had to come. Indeed, we put it off too long.

As far back as the 1950s, John Foster Dulles was recommending an "agonizing reappraisal" of all U.S. alliances. Dwight Eisenhower urged JFK to withdraw U.S. troops from Europe and let Europeans take over primary responsibility for their own defense.

Gen. Douglas MacArthur told JFK not to put his foot soldiers into Southeast Asia. President Nixon said that in future Asian wars, Asian boys, not American boys, must carry the burden of ground fighting.

Robert Gates said on his departure that any future defense secretary who pushed his president to fight another Asian war ought to have his head examined. Common sense, born of painful experience.

But if the Pentagon budget is to be cut, how and where do we cut?

The debate on the right, too long delayed, must begin, for the cuts are coming and the $1 trillion likely to be slashed this year and next is only the beginning.

Wisdom in making these decisions may be found in the Kennedy commitment of 1960 that Reagan copied into the book of notes he kept in his Oval Office desk. Kennedy demanded that in defense America remain first -- not first when, or first if, but first, period.

Rather than slash weapons systems or R&D, the United States should begin by ending our three-and-a-half wars, terminating treaties to go to war for nations having nothing to do with U.S. vital interests, closing bases abroad, bringing troops home and staying out of unnecessary wars.

Why are we still committed to defending two dozen nations in Europe when the threat that took us there 60 years ago, the huge Red Army on the Elbe, went home 20 years ago?

Why are thousands of U.S. troops on the Korean DMZ when South Korea has twice the population and 40 times the economy of the North?

Why are Marines still in Okinawa, two-thirds of a century after their grandfathers invaded the island? Bring them home, and put them on the Mexican border, for that is where the future of this republic is going to be decided.

http://www.humanevents.com/article.php?id=45328
 
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FootballDad

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One thing that I've NEVER heard pundits or politicians talk about is an audit of Social Security and Medicaid/Medicare. It exceeds 60% of our budget and it's untouchable by politicians seeking reelection, but you can't tell me that these programs aren't fraught with waste, fraud, and corruption. I would be willing to bet that (conservatively) over 25% of the total budget amounts for these three programs fall into the above descriptions. Fixing that alone would solve the budget crisis. And that doesn't even start to address the massive waste in all of the alphabet-soup agencies and unconstitutional regulations that are part of our behemoth government.
 

Kaptain

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Well our medicare and social security will certainly be a target of blame by the PTB, but it won't be fraud that will be targeted. It'll just be a reduction in every working mans benefits. Meanwhile, benefits to third world minorities who haven't contributed a dime will continue to go on. We already pay plenty to receive the meager benefits we get. We should protect our benefits that we have earned instead of racing to impose austerity measures on ourselves. We've continue to increase military spending protecting Israel's borders while massive third world immigration continue across ours and the Federal Reserve banksters continue to dole out our money to their friends. Could we be so foolish as to accept austerity measures on ourselves instead of addressing the real problems?
 

FootballDad

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Well our medicare and social security will certainly be a target of blame by the PTB, but it won't be fraud that will be targeted. It'll just be a reduction in every working mans benefits. Meanwhile, benefits to third world minorities who haven't contributed a dime will continue to go on. We already pay plenty to receive the meager benefits we get. We should protect our benefits that we have earned instead of racing to impose austerity measures on ourselves. We've continue to increase military spending protecting Israel's borders while massive third world immigration continue across ours and the Federal Reserve banksters continue to dole out our money to their friends. Could we be so foolish as to accept austerity measures on ourselves instead of addressing the real problems?
Yep, no question about it. Rather than address waste, fraud, corruption, kickbacks, and money laundering withing the system, they will cut benefits and "punish the plebes" who dare question the system.
 

Colonel_Reb

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Good posts, gentlemen! It will definitely be interesting to see what happens tomorrow and in the days ahead.
 

Quiet Speed

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Gold and silver are on the move tonight. As of this post gold is up over $30 and silver is around $2 higher. Stock futures looking ill at this point. It’s wild out there.

Futures
 

Colonel_Reb

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Just noticed silver surging upward again as well, Quiet Speed. We'll see what effect, if any, the U.S. markets have on precious metals in less than 12 hours. I believe we are going to see another rough day on Wall Street.
 

Don Wassall

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Gold is soaring while silver is still being suppressed. Silver apparently is the key battle in the war between Wall Street and Main Street taking place. The continued existence of JP Morgan hangs on the outcome according to some as they are the key source of all the manipulated shorting that has been taking place in silver for so long.

Supply of silver is supposed to be very tight with lots of people wanting to buy it, but the price still doesn't reflect demand. I'm hoping huge demand from Asia, combined with the new metals trading market being set up there, will help to bust open the silver cartel soon.
 

Highlander

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Shows we don't really live in a true "free market" economy...anything but. That would be too fair of a playing field for the Oligarchs that have usurped our country and now want it all for themselves.

However, I believe they can only suppress it for so long. The higher and higher Gold goes, more people will be asking the question (I already heard someone ask it on a talk show today) "why is Silver still trading so low when Gold is skyrocketing?". In time, the answer to their question will become obvious and more and more people will start seeing through the charade of what this country has become and who controls it and the jig will be up.
 

Michael

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An article entitled "Winston Smith: Obama and the Obamatards blame everyone but themselves for U.S. credit downgrade"

The Obamatards are screaming that S&P’s judgment was flawed, and they are demanding that S&P change their criteria for lending money to a country that obviously cannot afford to make payments on the loan. That’s exactly what the U.S. government did with mortgage lenders. Congress, led by Barney Frank and Christopher Dodd, threatened audits of mortgage lenders that didn’t change their criteria for lending money to people who obviously couldn’t afford to make payments on home loans. The result is a big part of the conditions that put the economy in the mess it’s in now. The American people know it, and S&P knows it, too. And I’m pretty sure S&P is not going to be intimidated by Geithner, Axelrod, and other Obamatards wagging their fingers, stomping their feet, and snorting, “You have to change your lending criteria!â€

So, the Obamatards have fixed their blame crosshairs on the TEA Party, with a mild glance at S&P and wealthy Americans. But what about Obama? Who does he blame?

http://www.thepoliticalcesspool.org...yone-but-themselves-for-u-s-credit-downgrade/
 
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