Posts Tagged ‘Moody’s’

3rd Warning from Moody’s: Harbinger of Disaster

March 20th, 2010 No comments
All Hail Caesar Obama, Beware the Ides of March

Beware the Ides of March

NEW YORK CITY: Beware the Ides of March, so the seer warned Julius Caesar in 44 B.C. Twenty centuries later another seer warns a modern-day Caesar that his course of reckless spending threatens the destruction of our country. Like Julius Caesar, Caesar Obama pays no attention to the soothsayer.

On March 15 Moody’s warned the US for the 3rd time that the impending downgrade of our nation’s credit rating is looming:

The gold-plated credit rating of the United States — an article of faith across America and, indeed, around the world — may be at risk in coming years as the nation copes with its growing debts…

Moody’s said the United States and other major Western nations, particularly Britain, have moved “substantially” closer to losing their gilt-edged ratings. The ratings are “stable,” but “their ‘distance-to-downgrade’ has in all cases substantially diminished,” the credit ratings agency said…

“Growth alone will not resolve an increasingly complicated debt equation,” Moody’s said. “Preserving debt affordability” — the ratio of interest payments to government revenue — “at levels consistent with Aaa ratings will invariably require fiscal adjustments of a magnitude that, in some cases, will test social cohesion.” [Empahsis added] David Jolly and Catherine Rampell, New York Times

Likely scenarios if the US loses its triple-A rating: Read more…

George Soros Soon to Profit from Run on Dollar?

December 1st, 2009 No comments

George Soros to Profit From Run on Dollar?WASHINGTON: George Soros is positioning himself to set a new record in profits, thanks to the Obama administration. Due to the profligate spending of congress the US is well on its way to defaulting on its current obligations, possibly within the next 12 months. How is that possible, you say? Let’s take a look at it.

For example, let’s say you are running a household burdened by credit card debt, and that your monthly income is not adequate to pay your bills. Your next course of action? Bankruptcy. Same thing with countries, only it is called default. We saw that just last week in Dubai:

Dubai shook investor confidence across the Persian Gulf after its proposal to delay debt payments risked triggering the biggest sovereign default since Argentina in 2001. November 26, 2009. Bloomberg News

How can that happen to a country? By not having sufficient reserves to cover its short term obligations. Read more…

US National Debt Tops $12 Trillion

November 17th, 2009 1 comment
Zimbawe 100 Trillion Dollars

Zimbawe 100 Trillion Dollar Note

WASHINGTON: The US Debt has just topped 12 trillion dollars and is still climbing. If anything, the rate of acceleration is increasing, so we can look for more rampant spending to come. Our counter in the right column shows a running total so you don’t miss a minute of the action. gives a great snapshot of the whole picture. The US Department of the Treasury updates their website once per day, found here.

$12 trillion in debt cannot be paid off without draconian measures. Our federal reserve is printing currency like it is going out of style. (It IS going out of style.) This policy devalues our currency and will ultimately lead to runaway inflation. History has shown over and over again the fallacy of this approach. Countries like Zimbawe who try it end up destroying their currency,  their economy, and their country. In January 2009 the Zimbawe 100 trillion dollar note on the left was worth about $300. It quickly fell to zero. Our creditors know the danger the US is in. That is why Moody’s has warned the US about an impending credit downgrade. Read more…

Moody’s Warns US May Lose Aaa Rating

October 23rd, 2009 No comments
We may all be singing in green tights

We may all be singing in green tights

XINHUA: Today’s news from calls attention to yesterday’s warning from the credit rating giant Moody’s that the US is in danger of losing its Aaa credit rating.

This report comes out on the same day Christina Romer, Chairwoman of the President’s Council of Economic Advisers testifies before Congress that the Stimulus Package is a failure. We expect Congress to take her testimony as a call to pass Stimulus II, more of the same. (We report on her testimony here.)

It is appropriate that we use XINHUA as our dateline since the Chinese are our biggest creditors. Did our reckless administration and Congress think that they could spend our way into oblivion and the Chinese wouldn’t notice? Read more…

Categories: Economy Tags: ,