Concise Magazine

Icon

Succinct articles that help us understand the time in which we find ourselves. This is an Adult site and this is a good read. Like a giant scroll across the sky.

Graceful Divestment #usdebt Rating and standing. This issue is far from over.

Every country that has hit 100% of it’s GDP in debt has defaulted – or will.

Every other country with debt issues such as have been downgraded, and rightfully so. The only thing that prevents this right now may be reserve currency status and the fact that all other currencies suck worse than the Dollar right now.

The issue aside from the fact that the value of credit agency ratings may no longer represent investment expectations, is the issue that it is frightfully expensive to lose a credit rating as a Nation. Not to mention, tack on that added interest to the debt, and lenders may no longer find US currency, bonds, and securities worth the risk if they see reckless accounting practices.

On the flip side, maybe that added burden may force politicians to curtail their vanity and cull the budget properly but I highly doubt it.

If you are going to have a ratings agency, would it not be prudent to rate Countries on the worth to GDP level minus government expenditure?

It was done with Russia which is one of the reasons for Putin’s quip. Greece, Italy, Spain, Ireland, Portugal, all at various levels. After a point they are junk status. Junk status is when you lost your shirt.

Downgrade the US now or give them another chance to get their balance sheet in order?

08/05/11 – Some structured advice and here is your sign.

08/07/11 – The rate of spending from the masterminds in Washington DC far outstrips what ever could have been paid in taxes. We must begin to be honest to ourselves, or live like mad max.

08/08/11 – It really IS a big deal. Remember my warnings prior and the rating rant.   Also, it helps to check Shadow Stats!

11/18/11 – This will be a downgrade. Democrats, you SUCK.

Advertisements

Filed under: Economy, SNAFUBAR, Update

%d bloggers like this: