As you all know, S and P gave the United States AA+ rating instead of the AAA rating it has enjoyed throughout the years. This makes perfect sense, considering the fact that the US is 14,587,849,000,000 as I write this post and climbing at an astonishing rate. Furthermore, the government has passed up the perfect chance to cut spending and reduce the deficit and has insisted on demonizing the people who try to restore sanity to the spending orgy that has been going on in Washington. The President has blamed this degrading on the bickering between republicans and democrats. Believe it or not, I agree with him. He and his democratic goons are holding americans money hostage all month and refused to do the responsible thing and cut spending. Because they refused to let the Republicans restore fiscal sanity and make US bonds credible. Borrowing more money, contrary to the Democrats unscrupulous rhetoric, is not enough to make the US AAA rated. What makes bonds credible is the likelihood that they will be payed back. What's the likelihood of that happening for US bonds when the debt is going to do nothing but climb higher and higher. There comes a point when the US can't just borrow more money. At this point, it would be good to remember that the reason that we got in this entire economic mess in the first place was that crediting agencies were pressured to give good ratings to things like Fannie Mae and Freddy Mack, which bought high risk loans and were just dying to go bankrupt. The government then chastised the rating agencies for their unscrupulous ratings and now that honest rating is coming back to bite them in the backside. I personally would give the US a much worse rating considering the vicious stupidity of our House democrats and maybe even the executive. We'll see what the future holds in this next election, however. Either America will hold fast in its demand for fiscal freedom or it will lapse back into a intoxication on entitlements and unconcern at astronomical deficit spending. If you want a stock market drop like today again, vote democrat.
No comments:
Post a Comment