Debt

For your reading pleasure!

The coming crises of governments
http://www.ft.com/cms/s/0/78abaf5c-be11-11e0-ab9f-00144feabdc0.html#axzz1U1UnQ3MO

US borrowing tops 100% of GDP: Treasury
http://news.yahoo.com/us-aaa-rating-still-under-threat-204040123.html

"The next time we have a global economic crisis, it will be much worse than 2008. Before this happens there will be money printing and there will be war. The whole system will collapse," he said. "That's why I'm advising people that they have to think it through. In a total collapse you don't want to own government bonds and cash."

http://www.cnbc.com/id/44031717

‎"If the US Government was a family, they would be making $58,000 a year, they spend $75,000 a year, and are $327,000 in credit card debt. They are currently proposing BIG spending cuts to reduce their spending to $72,000 a year. These are the actual proportions of the federal budget & debt, reduced to a level that we can understand." - Dave Ramsey

this doesn't help any

http://blogs.wsj.com/marketbeat/2011/08/05/cnbc-government-bracing-for-imminent-downgrade/?mod=google_news_blog

US Government Bracing for ‘Imminent’ Downgrade

Downgrade is official
http://www.washingtonpost.com/business/economy/sandp-considering-first-downgrade-of-us-credit-rating/2011/08/05/gIQAqKeIxI_print.html

Yonni wrote:

Downgrade is official
http://www.washingtonpost.com/business/economy/sandp-considering-first-downgrade-of-us-credit-rating/2011/08/05/gIQAqKeIxI_print.html

I knew it would be..... There are those that would opinion that this downgrade has a different purpose, or that it's all part of a plan. Either way, it's a bad deal, proof that the debt deal accomplished nothing, and that our Congress and POTUS could give two shits about us average Americans.

How much more needs to happen to America before everyone of us wakes up? This will consume us.

Yonni wrote:

‎"If the US Government was a family, they would be making $58,000 a year, they spend $75,000 a year, and are $327,000 in credit card debt. They are currently proposing BIG spending cuts to reduce their spending to $72,000 a year. These are the actual proportions of the federal budget & debt, reduced to a level that we can understand." - Dave Ramsey

I have enjoyed Dave's comments about this mess. It's funny, but spot on.

Why is it no one understands the seriousness of this downgrade

http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldata&blobtable=MungoBlobs&blobheadervalue2=inline%3B+filename%3DUS_Downgraded_AA%2B.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&blobwhere=1243942957443&blobheadervalue3=UTF-8

We have lowered our long-term sovereign credit rating on the United
States of America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term
rating.
· We have also removed both the short- and long-term ratings from
CreditWatch negative.
· The downgrade reflects our opinion that the fiscal consolidation plan
that Congress and the Administration recently agreed to falls short of
what, in our view, would be necessary to stabilize the government's
medium-term debt dynamics.
· More broadly, the downgrade reflects our view that the effectiveness,
stability, and predictability of American policymaking and political
institutions have weakened at a time of ongoing fiscal and economic
challenges to a degree more than we envisioned when we assigned a
negative outlook to the rating on April 18, 2011.
· Since then, we have changed our view of the difficulties in bridging the
gulf between the political parties over fiscal policy, which makes us
pessimistic about the capacity of Congress and the Administration to be
able to leverage their agreement this week into a broader fiscal
consolidation plan that stabilizes the government's debt dynamics any
time soon.
· The outlook on the long-term rating is negative. We could lower the
long-term rating to 'AA' within the next two years if we see that less
reduction in spending than agreed to, higher interest rates, or new
fiscal pressures during the period result in a higher general government
debt trajectory than we currently assume in our base case.

A to think that there are rumors and hints of another round of stimulus and Quantitative Easing.....

"Fundamentally changing America". The one campaign promise BHO kept.

"On Thursday, in honor of Barack Obama's 50th birthday, the Dow dropped ten points for every year he has walked among us. It was the ninth largest drop in history. We should be relieved he wasn't turning eighty. The markets are apparently concerned that the entire global economy may be 'stalling.' You don't say? Observant fellows, these market chappies. ... Under the 'historic' 'resolution' of the debt crisis (and don't those very words 'debt crisis' already feel so last week?), America will be cutting federal spending by $900 billion over ten years. 'Cutting federal spending by $900 billion over ten years' is Washington-speak for increasing federal spending by $7 trillion over ten years. And, as they'd originally planned to increase it by eight trillion, that counts as a cut. If they'd planned to increase it by $20 trillion and then settled for merely $15 trillion, they could have saved five trillion. See how easy this is? As part of this historic 'cut,' we've now raised the 'debt ceiling' -- or, more accurately, lowered the debt abyss. Do you ever discuss the debt with your neighbor? Do you think he has any serious intention to repay the 15 trillion racked up in his and your name? Does your congressman? Does your senator? Look into their eyes. You can see the answer. And, if none of these parties seem inclined to pay down the debt now, what are the chances they'll feel like doing so by 2020 when, under these historic 'cuts,' it's up to 23-25 trillion?" --columnist Mark Steyn

http://www.nationalreview.com/articles/273876/mad-debt-mark-steyn

dubob wrote:

Hot Damn! Now THAT lady has a firm grasp of the obvious. You go girl.

That's probably not the only thing she can get a firm grip on.....