U.S. Stripped of AAA Credit Rating

[KissMy]

One thing is for sure, Moody’s is defiantly a political or government controlled organization. Remember all those good ratings they gave bad subprime CDOs? Likely Government Orders.

do some research. They are paid by corporations for their ratings. And they have competition. Who would you get to rate your securities someone who rates them accurately ie high risk or someone who rates them low risk based on no empirical data or models?
Remember the lower the risk rating the more money you make.

So the US Government just reduced Moody’s payment so Moody’s cut the US Debt Rating?

 

[ekrem]

Why USA still has best ratings from the '3 big' Credit Agencies is because all 3 Credit Rating Agencies are located in USA. As long as all '3 big' Agencies are in USA, USA will always get best rating. Otherwise US administration will wage war against Agency and make coup d'etat to position a more "patriot" CEO as head. Old CEO will enjoy retirment age in nature of Guantanomo.

USA must be given Credit Rating which mirrors 21st century reality. It can not be, that a country which causes a world-wide economic and financial crisis is given best Credit Ratings which determine interest payments on newly taken debts. In non-USA world, countries spending like USA are punished through US Rating Agencies like Greece.


CNN:
More than half of the $9 trillion in debt that Uncle Sam is expected to build up over the next decade will be interest.
Interest due on U.S. debt: Close to $5 trillion

That means in a decade (10 years) you will make almost 1 Trillion $ additional debt a year, half of it only to serve Interest Payments. These interest payments are defined by fixed+faked Credit Ratings by the 3 US Credit Rating Agencies, which rate USA best possible.
Alice in Wonderland.

By 2011 you will reach 100% debt-to-GDP ratio.
http://spmedia.canada.com/gallery/00oposted/GROSS-DEBT.eps.jpg
Every year comes 1 Trillion $ more and USA is the "mad-dog" burning the world with economic and financial crisis. I support China in this move fully and I believe it is not the last down-grading.
The 3 US Rating Agencies are a big joke, and if they do not follow suit, the world should deprive them of further relevance in this Rating Business.

 

[uscitizen]

One thing is for sure, Moody’s is defiantly a political or government controlled organization. Remember all those good ratings they gave bad subprime CDOs? Likely Government Orders.

do some research. They are paid by corporations for their ratings. And they have competition. Who would you get to rate your securities someone who rates them accurately ie high risk or someone who rates them low risk based on no empirical data or models?
Remember the lower the risk rating the more money you make.

So the US Government just reduced Moody’s payment so Moody’s cut the US Debt Rating?

Just do some research, you will learn a lot.
I am referring to the repackages NINJA loans and such combined with FM&FM securities and other variations as well. The finiancial services sectors "innovation" just about killed us off. they were like ENRON running amock in the finiancial industry.

 

[ekrem]

Average US American is not more worth then average Greek.

 

[ekrem]

US Rating Agency lowering Greece to junk-status.
washingtonpost.com - Stocks slump as Greece debt downgraded to junk

You know what that did mean for average Greek? Greek government had to spend more money from the existing budget into financing and rolling-over debt, resulting in less "real spending" for the Ministries and duties of a Government and therefore raising various taxes in Greece.

How easy that is to lower a country into junk-status, off course if it is not your own country.

 

[topspin]

He jblibtard you stop using oil first
secondly how many of us have ever gave a fuck what a chineese rating agency say's.

 

[william the wie]

I still say China and the EU will start melting down within 15 months.

 

[loosecannon]

I still say China and the EU will start melting down within 15 months.

That's quite a race you project there, Willie. Esp since Japan and the US, in fact ALL The world's econ giants are basically at the end of their rope.

Only humans could fuck anything up this badly. Only really, really smart humans!

Animals and dumb people could never screw up on such an awesome scale.

It's like the crowning achievement of man to erect a disaster of such epic proportions!

But wait, we still have the population bomb, nuclear weapons, genetically modified organisms randomly thrown into the environment and genetic warfare to add to the mix!

The next century will be awesome!

 

[william the wie]

Three things make the US unique.

The logistics of making war on us are very high cost relative to other rich nations.

Our internal logistics are better per capita than anywhere else on the planet.

Our immigration tradition combined with the above make it possible for us to brain drain the rest of the world.

The combination of all three factors makes the US a safe haven in bad times and the comments of a Chinese ratings agency meaningless.

 

[loosecannon]

This too will pass, buddy.

He who has the gold makes the rules.

 

[KissMy]

South Carolina Bill, (H. 4501) introduced in the House on February 2, 2010, declares Federal Reserve notes as “unconstitutional” and the cause of the state’s “economic crisis of severe magnitude.”

South Carolina General Assembly
118th Session, 2009-2010

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 18 TO CHAPTER 1, TITLE 1 SO AS TO PROVIDE THAT SILVER AND GOLD COIN SHALL BE LEGAL TENDER IN PAYMENT OF CERTAIN DEBTS.

Section 1-1-1110. The South Carolina General Assembly finds and declares that the State is experiencing an economic crisis of severe magnitude caused in large part by the unconstitutional substitution of Federal Reserve Notes for silver and gold coin as legal tender in this State. The General Assembly also finds and declares that immediate exercise of the power of the State of South Carolina reserved under Article I, Section 10, Paragraph 1 of the United States Constitution and by the Tenth Amendment, is necessary to protect the safety, health and welfare of the people of this State, by guaranteeing to them a constitutional and economically sound monetary system.