S&P now reconsidering US downgrade after a math error that caused them to be “trillions” off in their analyses. Of course it was the Treasury that found the error.
Seems just a little too convenient to me. No one noticed the error until this morning.
Really…
Forgot link…
A sneaky ploy indeed. Now we get to run our debt off the charts! What ever happened to good, old fashioned assassinations?
[quote]JEATON wrote:
S&P now reconsidering US downgrade after a math error that caused them to be “trillions” off in their analyses. Of course it was the Treasury that found the error.
Seems just a little too convenient to me. No one noticed the error until this morning.
Really…[/quote]
Lulz.
I think we have a rough idea now how stupid they think the averaqe voter is.
They are probably not too far off either.
[quote]HoustonGuy wrote:
A sneaky ploy indeed. Now we get to run our debt off the charts! What ever happened to good, old fashioned assassinations?[/quote]
I dunno.
The relationship of the US government and its people starts to get so BDSM that all further threats should be started in SAMA.
Oh oh…
S&P went decided to move forward with their downgrade of the US credit rating to AA+, down from AAA.
Our reckless spending has knocked us down to the ranks of subprime.
Chickens coming home to roost?
Fox Business reporter Peter Barnes began his televised interview with Treasury Secretary Tim Geithner two days ago with this question: “Is there a risk that the United States could lose its AAA credit rating? Yes or no?”
Geithner’s response: “No risk of that.”
“No risk” Barnes asked.
“No risk,” Geithner said.
[quote]JEATON wrote:
Oh oh…
S&P went decided to move forward with their downgrade of the US credit rating to AA+, down from AAA.
Our reckless spending has knocked us down to the ranks of subprime.
Chickens coming home to roost?
[/quote]
Not only that, we’ve still got a negative outlook. Another downgrade is definitely possible.
What does this to regular American Jeaton? Higher interest passed on down to us. Im not expert on this just starting to learn the ropes on these kinds of issues.
Typical of this Admin, pass it first and then we find out whats in the bill, just like health care.
Oh, there are varying levels of subprime. You have your boags, victims, rats, hood rats, and can’t-get-dones.
We are now boags. Means we can still get credit, we just have to pay more for it as we have not shown good financial judgement.
Lots of time for us to fall through the ranks of rats, hood rats, etc.
[quote]Sloth wrote:
Fox Business reporter Peter Barnes began his televised interview with Treasury Secretary Tim Geithner two days ago with this question: “Is there a risk that the United States could lose its AAA credit rating? Yes or no?”
Geithner’s response: “No risk of that.”
“No risk” Barnes asked.
“No risk,” Geithner said.
http://www.bloomberg.com/news/2011-04-20/geithner-downgrades-his-own-credibility-to-junk-jonathan-weil.html[/quote]
In New Jersey news, it is reported that our former Gov. Corzine (not so affectionately called CoreSlime) is being considered to replace Geithner. I can’t think of a person more UN-Qualified for the job. Although he was CEO of Goldman-Sachs prior to his political career, as Governor he was completely beholden to the unions and ran up the states debt, setting the stage for Gov. Chris Christie to come in and be a hero with his fiscally responsible spending cuts.
It blows my mind that Obama would consider him. Of course, I’m not expecting Obama to put the Tea Party in the Treasury…but COME ON! I can’t imagine CoreSlime would pass the vetting process. If he does, I’m moving to Canada (or Texas).
lol thats why i pulled my money out of the market a few weeks ago…I’m currently trying to figure out how to hedge against the devaulation of the dollar, but foreign governments are messing my plans up…
but, yeah this was imminent…If you take one look at the forward projected obligations, you realize how screwed up these guys are…
They are living in fantasy land…making mistake after mistake…
[quote]D Public wrote:
lol thats why i pulled my money out of the market a few weeks ago…I’m currently trying to figure out how to hedge against the devaulation of the dollar, but foreign governments are messing my plans up…
but, yeah this was imminent…If you take one look at the forward projected obligations, you realize how screwed up these guys are…
They are living in fantasy land…making mistake after mistake…
[/quote]
Why are you expecting further devaluation of the dollar?
Everything we are seeing points to the fact that quantitative easing does not work. You can’t push a rope.
In other words, I expect the dollar to be in the very beginning stages of a long strong dollar run.
well this is obviously just a prediction…so take it for what it is…
I think a massive US recession is going to occur…far worse than the other countries…
in the immediate short term, the dollar and treasuries will rise as people pull out of the global market and run torwards safety(Treasuries and US dollars)…but, then when they realize that treasuries and dollars are overvalued, I expect the demand for treasuries and dollars to fall as investors run torwards safer investments with higher returns…which i believe are the emerging markets…
So, the devaluation will be due to a long term lower foreign demand for dollars…effectively reducing the value of dollars…
Basically people will run torwards the most growth when their own economies contract upon themselves…
[quote]D Public wrote:
well this is obviously just a prediction…so take it for what it is…
I think a massive US recession is going to occur…far worse than the other countries…
in the immediate short term, the dollar and treasuries will rise as people pull out of the global market and run torwards safety(Treasuries and US dollars)…but, then when they realize that treasuries and dollars are overvalued, I expect the demand for treasuries and dollars to fall as investors run torwards safer investments with higher returns…which i believe are the emerging markets…
So, the devaluation will be due to a long term lower foreign demand for dollars…effectively reducing the value of dollars…
Basically people will run torwards the most growth when their own economies contract upon themselves…[/quote]
While I agree with the overall flavor of you post, I do think that there are a couple of flaws.
And this too is only an opinion.
The recession that we are entering is global in nature and will leave no country untouched. Europe will feel it worse than the US, however this is only a relative estimate. It will be bad enough for everyone. The EU will not survive it and therefor the Euro will be gone long before the dollar.
As the dollar is the reserve currency of the world, as deflation takes hold there will be a rush towards dollars to pay and retire debt. I don’t think inverters will be as worried about high return investments as they will be simple preservation of capital.
Or I might just be full of shit.
You seem to be assuming that we have seen the end of quantitative easing just because it doesn’t work. Governments don’t usually work that way JEATON.
well I’m only certain that the absolute value of the dollar(so, all US investments relative to commodities namely Oil) will fall in next couple yrs or so and that is my main concern…it may strengthen against the euro or it may not, but the absolute value will continue to go down…albeit this will be gradual and slow after this point…
I’m also fairly certain china will begin restructuring efforts in the next couple yrs(to limit export dependence on the US), and they will start fully floating their currency instead of pegging it…This is when i see people rushing to china…Now, this will inevietably cause a bubble…in which case, i see the investors rushing back to the US which should have underwent restructuring of it’s own…
and thats basically how i see things playing out in the long term…
Which is why i’m planning on investing heavilly in agriculture and energy…as i believe those are two areas that should be in high demand in the future…
[quote]Gaius Octavius wrote:
You seem to be assuming that we have seen the end of quantitative easing just because it doesn’t work. Governments don’t usually work that way JEATON.[/quote]
yeah im fairly certain they will do QE3…A friend of mine said that there is possibility of a second wave of mortgage defaults if interest rates are raised…which makes sense to me…
There are a lot of rumors of what they are going to do…Some are suggesting that they will try to flatten the yield curve to effectively strengthen the dollar against commodities in the short term while decreasing interest rates for businesses and mortages in the long term…
I personally don’t think that is even possible…but, we will what happens…
[quote]D Public wrote:
lol thats why i pulled my money out of the market a few weeks ago…I’m currently trying to figure out how to hedge against the devaulation of the dollar, but foreign governments are messing my plans up…
but, yeah this was imminent…If you take one look at the forward projected obligations, you realize how screwed up these guys are…
They are living in fantasy land…making mistake after mistake…
[/quote]
Look into liquefied propane gas LPG .
[quote]Gaius Octavius wrote:
You seem to be assuming that we have seen the end of quantitative easing just because it doesn’t work. Governments don’t usually work that way JEATON.[/quote]
You mean, printing more money ?