U.S. Stripped of AAA Credit Rating

[loosecannon]

Meh

I wouldn't put much stock in it.

There is a theory floating around out there that this is a precursor to the Chinese revaluing the yuan. The Chinese cannot revalue as long as Americans are lecturing the Chinese to do so. However, if they can argue to their people that a bond rating agency is saying that investors should be worried about their investment in US bonds, then they can revalue the yuan, since the loosening the peg will mean buying less US bonds.

I bet that you would not wager on that theory being true tho.

He might not but I would. If Chinese investors cannot buy US securities and real estate at something close to purchasing price parity China will in all probability explode soon. The Chinese real estate bubble or the Chinese state will end soon.

OK, but they still are not about to drop the peg and usher in 40% inflation asap.

 

[william the wie]

I don't know with available data but excessive savings certainly appears to be driving far more than 40% asset inflation within China. It would appear to be far safer for the party leadership if greater overseas investment accounts were available in China.

 

[uscitizen]

You think our leaders are fooled by media? Maybe they are fooled by lobbyists, but they must be smart enough to realize that they are selling us down the river as a nation.

I can hardly believe what has occurred in the last 10 years. All the really, really dire threats are being ignored while the nation crumbles and the threats that people worry about are almost all meaningless.

How could we be so stupid?

Our leaders have sold out to corporate interests.

 

[mdn2000]

WEll...what did we expect when we spent money on senseless wars of Empire that were designed to return NOTHING to the nation which paid for it?

Sooner or later of course the fact that we've got a system this corrupt would effect our national credit worthines.

The solution is pretty simple.

Stop building empires that bill the American people, while only really benefitting the a select group in the private sector.

We can approach this pone of two ways.

Either we continue building empire and just flat out admit that we're taling over the resources of other nations in behal;f of the PEOPLE,

or...

We can just stop building empire entirely.

My choice the latter, of course.

It'll never happen though because the people in CHARGE of this so called Republic get all the benefit of bankrupting this nation and they don't have to pay the frieght for empire building, do they?

No instead they actually make piles of money both supplying for the wars of the Empire, and then with sweetheat deals when the spoils of war are divied out.

Nice system for THEM.

But it sucks for the nation itself.

Last time I checked China is not supplying us with weapons for war, last time I checked it was Hot Wheels and Frisbees.

I agree with some of your points, stop building empires, the empire of rich politicians and the corporations that make them rich, stop using government to mandate what we buy, maybe lower taxes to the point that its cheaper to be Made in the USA.

But your just using this thread to bash a war you were afraid of, I guess in your world its good to have rape, murder, and death by chemical weapons (kurds and iranians).

If you were really concerned and new the problem you would demand cheap energy and tiny taxes which will fuel industry in the USA.

China will own us as long as they produce more, that includes cheap energy to build the cheap toys they sell to the world.

I hope we cant borrow a dime after Obama, thats the best Obama can do for us, prevent congress from spending more money than they can take directly out of my pocket, its worst when that is not even enough so they borrow against the future.

The only people who need to lose power is the career politicians, REPUBLICANS AND DEMOCRATS.

Us idiots are to busy arguing about global warming and trips to India to recognize the real problem.

No AAA rating, how about no credit at all, I prefer no credit for the politicians, take away all their power.

 

[KissMy]

Meh

I wouldn't put much stock in it.

There is a theory floating around out there that this is a precursor to the Chinese revaluing the yuan. The Chinese cannot revalue as long as Americans are lecturing the Chinese to do so. However, if they can argue to their people that a bond rating agency is saying that investors should be worried about their investment in US bonds, then they can revalue the yuan, since the loosening the peg will mean buying less US bonds.

China should be worried about their investment in US bonds & losing value due to inflation. They may be on to something with that theory.

China inflation spikes in October, fueling rate-hike fears

China’s consumer prices increased at their fastest pace in two years in October, strengthening expectations the central bank might continue to tighten monetary policy to curb inflationary pressures.

Fueled by a spike in food prices, the consumer price index jumped 4.4% in October, well above the 3.6% reading in September and beating economists’ expectations for a 4% rise. The nation’s producer price index accelerated 5% during the month, also beating estimates for a 4.6% rise and September’s 4.3% increase.

Food prices soared more than 10% during the month, while non-food price increases, although relatively modest at 1.6%, were higher than the 1.4% increase recorded in September. "Inflation now replaces asset bubble as the top concern for policy makers, as well as investors."

 

[loosecannon]

I don't know with available data but excessive savings certainly appears to be driving far more than 40% asset inflation within China. It would appear to be far safer for the party leadership if greater overseas investment accounts were available in China.

That may make sense to you and me, but historically China has not considered the rest of the world worthy of investment. That's a cultural tradition dating back 1000's.

And they only deviate today to gain access to resources.

And they are not willing to allow western banks to take over their economy. They intend to take over the world's economy instead.

 

[loosecannon]

Our leaders have sold (us) out to corporate interests.

Fixed it for you usc!

 

[william the wie]

That may make sense to you and me, but historically China has not considered the rest of the world worthy of investment. That's a cultural tradition dating back 1000's.

And they only deviate today to gain access to resources.

And they are not willing to allow western banks to take over their economy. They intend to take over the world's economy instead.

It can't happen any more than Japan could in the 80s. The iron rice bowl is so ingrained throughout the region that the firing of a breakfast chef during his 90 day probation period actually made the news in New Zealand. NZ has no direct links to the Far East yet I saw that news item and it was not a celebrity chef. The concern with face and tolerance of incompetence permeates the entire region that in turn leads to the curious fact that generally ROI>ROE for more than 1/3 of the world's population. Big name companies in Japan and China would see stockholder revolts in most of the world with India not very far behind.

 

[KissMy]

Moody’s Upgrades The People’s Republic

Two days ago, a major Chinese credit rating agency downgraded US sovereign debt. The reasons were that deficits and the national debt were too high, and growth was too slow.

Today, Moody’s a US-based agency, upgraded its rating on sovereign Chinese paper just ahead of the G20 conference. It is another sign that the People’s Republic goes to the meeting with its strength on the rise. That could also mean trade partners and enemies of its “manipulation” of the yuan will use the information to point to China’s tremendous capital leverage. It is power that the central government has used to undermine the ability of its trading partners to improve their balance of trade with China and gain additional access to its markets.

Moody’s Investors Service upgraded the Chinese government’s bond rating to Aa3 from A1 and is maintaining its positive outlook. That means another upgrade could be in the offing.

 

[KissMy]

Harrisburg, PA. Council To Vote On Bankruptcy Attorneys

Harrisburg, PA. is ready to file for Chapter 9 municipal bankruptcy.

 

[CrusaderFrank]

Obama is just following Soros orders

 

[Mad Scientist]

This is one that belongs completely to Obama.

No, this one belongs completely to the Federal Reserve.

 

[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.

 

[JBeukema]

maybe lower taxes to the point that its cheaper to be Made in the USA.

You really don't know a damned thing about the issue, do you?

But your just using this thread to bash a war you were afraid of, I guess in your world its good to have rape, murder, and death by chemical weapons (kurds and iranians).

Would we care if they didn't have oil? Does America care about Darfur? Sudan? Did we care about Rwanda? Did we care before our old excuses for invading were proven to be crap?

 

[KissMy]

Would we care if they didn't have oil? Does America care about Darfur? Sudan? Did we care about Rwanda? Did we care before our old excuses for invading were proven to be crap?

Well if you would just stop using oil, then this would not have to happened.

 

[JBeukema]

Maybe we can top using oil when we stop letting the fascists control the world and manipulate people and states for their own profit?

[ame=http://www.amazon.com/Internal-Combustion-Corporations-Governments-Alternatives/dp/0312359071]Amazon.com: Internal Combustion: How Corporations and Governments Addicted the World to Oil and Derailed the Alternatives (9780312359072): Edwin Black: Books[/ame]

 

[editec]

WEll...what did we expect when we spent money on senseless wars of Empire that were designed to return NOTHING to the nation which paid for it?

Sooner or later of course the fact that we've got a system this corrupt would effect our national credit worthines.

The solution is pretty simple.

Stop building empires that bill the American people, while only really benefitting the a select group in the private sector.

We can approach this pone of two ways.

Either we continue building empire and just flat out admit that we're taling over the resources of other nations in behal;f of the PEOPLE,

or...

We can just stop building empire entirely.

My choice the latter, of course.

It'll never happen though because the people in CHARGE of this so called Republic get all the benefit of bankrupting this nation and they don't have to pay the frieght for empire building, do they?

No instead they actually make piles of money both supplying for the wars of the Empire, and then with sweetheat deals when the spoils of war are divied out.

Nice system for THEM.

But it sucks for the nation itself.

Last time I checked China is not supplying us with weapons for war, last time I checked it was Hot Wheels and Frisbees.

You misread my post. I didn't say that China was making the weapons of war, I suggested that we were. Selling weapons worldwide is one of the few things that we still count on.

Of course in many cases the us taxpayer gives the customers the money to buy then, but to the people who own those factories, it's still profitable.

I agree with some of your points, stop building empires, the empire of rich politicians and the corporations that make them rich, stop using government to mandate what we buy, maybe lower taxes to the point that its cheaper to be Made in the USA.

You can lower taxes to ZERO and you still won't overcome the difference in the cost of labor.

But your just using this thread to bash a war you were afraid of, I guess in your world its good to have rape, murder, and death by chemical weapons (kurds and iranians).

A war I'm afraid of?

This is a throwaway insult that doesn't address anything you or I are discussing.

If you were really concerned and new the problem you would demand cheap energy and tiny taxes which will fuel industry in the USA.

Demand cheap energy?

China will own us as long as they produce more, that includes cheap energy to build the cheap toys they sell to the world.

Ah, now I think I get it. You must mean coal, right?

I hope we cant borrow a dime after Obama, thats the best Obama can do for us, prevent congress from spending more money than they can take directly out of my pocket, its worst when that is not even enough so they borrow against the future.

I question how the most productive society in the world also became its largest debtor nation. But that issue is way outside of this discussion.

The only people who need to lose power is the career politicians, REPUBLICANS AND DEMOCRATS.

We're on the same page there.

Us idiots are to busy arguing about global warming and trips to India to recognize the real problem.

Well you have to read around the partisan asshats that live here, but there's good thinking going on from both a liberal and conservative POV.

No AAA rating, how about no credit at all, I prefer no credit for the politicians, take away all their power.

Too late.

The cows are in the meadow and the pigs are in the corn, sport.

 

[JBeukema]

1)energy density? Oil's nothin' compared to nuclear.

2)convenience?

3)Setting an h-bomb off over your house gives you the power of how many slaves? Neither scenario sustainable

4)ever heard of the Great Smog?

5)who said anything about ethanol? And how is flex so inconveniencing? Let me guess, you think someone other than big corn wants corn ethanol

 

[KissMy]

Maybe we can top using oil when we stop letting the fascists control the world and manipulate people and states for their own profit?

Amazon.com: Internal Combustion: How Corporations and Governments Addicted the World to Oil and Derailed the Alternatives (9780312359072): Edwin Black: Books

Are you trying to sell books? What are the Cliff Notes About?

The reason we prefer oil is because of its conveniences & energy density. One barrel of oil has the same amount of energy of up to 25,000 hours of hard human labor, which is 12.5 years of work. At $20 per hour, this is $500,000 of labor per barrel. The average American uses 20 barrels of oil per year. That gives each American power equal to 250 slaves.

The American people do not even want to be inconvenienced by using ethanol. They sure as hell do not don't want to pay extra for inconsistant solar & wind power or plug in their car every 30 miles.

You limousine Liberals need to kick the oil habit first & lead by example. I have done so & it sucks. I am now mostly back on the grid after that little experiment.

 

[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.