- Jun 6, 2007
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This week the Financial Credit Rating Agency "Fitch" downgraded the United States credit rating from "AAA" to "AA+" and the media treats this as a non-event, in part, because today the media isn't a fully good media, journalism no longer has the integrity the profession used to have today its largely all about selling advertisements and our country is a less good country because of it. If this downgrade happened fifteen years ago the media would have treated it as a major event like it deserves to be treated and it would have highlighted the reason why were in this situation is the failure of our government to do its basic duty to be a good steward of our nation's finances and it would have underscored that at the absolutely bare minimum America needs government reform in the area of term limits for members of Congress, two terms for Senators and five terms for House members; members of Congress need to stop prioritizing getting elected and start prioritizing protecting and advancing the interests of the American people.
What the media should be doing is reporting to the American people that this Fitch downgrade means that now two of the major financial credit rating agencies has downgraded the U.S. credit rating to "AA+" so now the United States of America no longer has a triple AAA credit rating. This is an historic and terrible event for America that now means United States Treasury bonds no longer have a triple AAA credit rating the largest sovereign debt market in the world a market worth trillions and trillions of dollars the bonds trading in this market are no longer the safest bond from an investment standpoint. If the media was doing its job it would be spotlighting that the United States, European and other major economies hold that the rule of law governs their society, the rule of law isn't something one only heeds if one feels like it, if it is politically correct to do so, it isn't a subjective mandate on society. The media should be pointing out here that trust documents and bond covenants and other contractual obligations which require monies be held in a triple AAA rating security now require those individuals or entities bound by these legal obligations to sell their U.S. Treasury securities and buy triple AAA securities if they can find them. The world should now be seeing large scale selling of U.S. treasury bonds this isn't discretionary with these holders they are legally obligated to sell these non-conforming securities; the world and the United states should be seeing the price of U.S. Treasury bonds dropping because of this development.
This writer isn't happy about this unfolding of the U.S. Treasury markets that should take place. What should also be unfolding with this large scale dumping of Treasury bonds is public recognition of how past and present Congresses and Presidents failed in their duty to the American people. The public conversation should now be taking place on what type of government reforms the American people will cast on Washington because of the harm Congresses and Presidents wrought on America because of mismanagement of America's finances which brought on the country this financial downgrade and the loss of our precious Triple AAA credit rating!
What the media should be doing is reporting to the American people that this Fitch downgrade means that now two of the major financial credit rating agencies has downgraded the U.S. credit rating to "AA+" so now the United States of America no longer has a triple AAA credit rating. This is an historic and terrible event for America that now means United States Treasury bonds no longer have a triple AAA credit rating the largest sovereign debt market in the world a market worth trillions and trillions of dollars the bonds trading in this market are no longer the safest bond from an investment standpoint. If the media was doing its job it would be spotlighting that the United States, European and other major economies hold that the rule of law governs their society, the rule of law isn't something one only heeds if one feels like it, if it is politically correct to do so, it isn't a subjective mandate on society. The media should be pointing out here that trust documents and bond covenants and other contractual obligations which require monies be held in a triple AAA rating security now require those individuals or entities bound by these legal obligations to sell their U.S. Treasury securities and buy triple AAA securities if they can find them. The world should now be seeing large scale selling of U.S. treasury bonds this isn't discretionary with these holders they are legally obligated to sell these non-conforming securities; the world and the United states should be seeing the price of U.S. Treasury bonds dropping because of this development.
This writer isn't happy about this unfolding of the U.S. Treasury markets that should take place. What should also be unfolding with this large scale dumping of Treasury bonds is public recognition of how past and present Congresses and Presidents failed in their duty to the American people. The public conversation should now be taking place on what type of government reforms the American people will cast on Washington because of the harm Congresses and Presidents wrought on America because of mismanagement of America's finances which brought on the country this financial downgrade and the loss of our precious Triple AAA credit rating!
