Monday, April 18, 2011

Portugal last week, the USA this week

Today (Monday) Standard & Poors came out with an alert suggesting that they might within two years downgrade US government debt. From S&P, "Because the U.S. has, relative to its AAA peers, what we consider to be very large budget deficits and rising government indebtedness, and the path to addressing these is not clear to us, we have revised our outlook on the long-term rating to negative from stable,"

This is all being spun for political advantage by the right, be afraid of the debt, be afraid of the government, be afraid of taxes. They don’t want anybody to wakeup to the fact that the US could in fact easily run a budget surplus if it returned to revenue collection rates of ten years ago. Of course this would cut into the profits on Wall Street and they can’t have that, so grandma has to go out on the ice flow, and you should just be glad you don’t with her.

4 comments:

Andrea said...

Well, I wondered if that was what happened. I'm grandma.

Anonymous said...

So what's next do you think?

prairie2 said...

The IMF will continue to try to pick off the weaker European countries but there are too many variables clouding up the crystal ball to make any grand predictions.

BluCowgirl said...

Hmmmmmm, the rating agencies, by upgrading ratings of all of the trashy secutities, CDOs, etc., seems to me are one of the main reasons we have the depression we are in the middle of now! So, let's see, now they are downgrading our bonds? REALLY, REALLY! WTF Over!? So, were they lying before, now and/or both? Hmmmmm.....