The Beginning Of The End
The Beginning Of The End By Michael T. Snyder - Kindle Version

The Prepper's Blueprint

The Mystery Of The Shemitah
Don't Buy Survival Food Until You Read This - If you stockpile the wrong foods, you could be setting your family up to starve. It sounds harsh, but the truth is too many people with good intentions are making critical mistakes with their food stockpiles. Watch this video now >>
Gold Buying Guide: Golden Eagle Coins

Recent Posts

Archives

A 634 Point Stock Market Crash And 8 More Reasons Why You Should Be Deeply Concerned That The U.S. Government Has Lost Its AAA Credit Rating

Are you ready for part two of the global financial collapse?  Many now fear that we may be on the verge of a repeat of 2008 after the events of the last several days.  On Friday, Standard & Poor’s stripped the U.S. government of its AAA credit rating for the first time in history.  World financial markets had been anticipating a potential downgrade, but that still didn’t stop panic from ensuing as this week began.  On Monday, the Dow Jones Industrial Average dropped 634.76 points, which represented a 5.5 percent plunge.  It was the largest one day point decline and the largest one day percentage decline since December 1, 2008.  Overall, stocks have fallen by about 15 percent over the past two weeks.  When Standard & Poor’s downgraded long-term U.S. government debt from AAA to AA+, it was just one more indication that faith in the U.S. financial system is faltering.  Previously, U.S. government debt had a AAA rating from S&P continuously since 1941, but now that streak is over.   Nobody is quite sure what comes next.  We truly are in unprecedented territory.  But one thing is for sure – there is a lot of fear in the air right now.

So exactly what caused S&P to downgrade U.S. government debt?

Well, it was the debt ceiling deal that broke the camel’s back.

According to S&P, the debt ceiling deal “falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics.”

As I have written about previously, the debt ceiling deal was a complete and total joke, and S&P realized this.

Forget all of the huge figures that the mainstream media has been throwing at you concerning this debt ceiling deal.  The only numbers that matter are for what happens before the next election.

The only way that the current debt ceiling deal will last beyond the 2012 election is if Obama is still president, the Democrats still control the Senate and the Republicans still control the House.  If any of those things change, this deal ceiling deal is dead as soon as the election is over.

Even if all of those things remain the same, there is still a very good chance that we would see dramatic changes to the deal after the next election.

So in evaluating this “deal”, the important thing is to look at what is going to happen prior to the 2012 election.

When we examine this “deal” that way, what does it look like?

Well, Barack Obama and the Democrats get the debt ceiling raised by over 2 trillion dollars and will not have to worry about it again until after the 2012 election.

The Republicans get 25 billion dollars in “savings” from spending increases that will be cancelled.

The “Super Congress” that is supposed to be coming up with the second phase of the plan may propose some additional “spending cuts” that would go into effect before the 2012 election, but that seems unlikely.

So in the final analysis, the Democrats won the debt ceiling battle by a landslide.

25 billion dollars is not even 1 percent of the federal budget.  The U.S. national debt continues to spiral wildly out of control, and our politicians could not even cut the budget by one percent.

Somehow our politicians believed that the rest of the world would be convinced that they were serious about cutting the budget, but it turns out that global financial markets are tired of getting fooled.

It has gotten to the point where now even the big credit rating agencies are being forced to do something.  Not that they really have much credibility left.  Everyone still remembers all of those AAA-rated mortgage-backed securities that imploded during the last financial crisis.  The reality is that the big credit rating agencies are a bad joke at this point.

Several smaller credit rating agencies have already significantly slashed the credit rating of the U.S. government.  But a lot of pressure had been put on the “big three” to keep them in line.

But now things have gotten so ridiculous that S&P felt forced to make a move.

Sadly, our politicians are still trying to maintain the charade that everything is okay.  Barack Obama says that financial markets “still believe our credit is AAA and the world’s investors agree”.

Once again, Barack Obama is dead wrong.

The truth is that the credit rating for the U.S. government should have been slashed significantly a long time ago.  This move by S&P was way, way overdue.

Moody’s might be the next one to issue a downgrade.  At the moment, Moody’s says that it will not be downgrading U.S. debt for now, but Moody’s also says that it has serious doubts about the enforceability of the “budget cuts” in the debt ceiling deal.

This crisis is just beginning.  It is going to play out over time, and it is going to be very messy.

The following are 8 more reasons why you should be deeply concerned that the U.S. government has lost its AAA credit rating….

#1 The U.S. dollar and U.S. government debt are at the very heart of the global financial system.  This credit rating downgrade just doesn’t affect the United States – it literally shakes the financial foundations of the entire world.

#2 As the stock market crashes, investors are flocking to U.S. Treasuries right now.  However, once the current panic is over the U.S. could be faced with increased borrowing costs.  The credit rating downgrade is a signal to investors that they should be receiving a higher rate of return for investing in U.S. government debt.  If interest rates on U.S. government debt do end up going up, that is going to make it more expensive for the U.S. government to borrow money.  The higher interest on the national debt goes, the more difficult it is going to become to balance the budget.

#3 We could literally see hundreds of other credit rating downgrades now that long-term U.S. government debt has been downgraded.  For example, S&P has already slashed the credit ratings of Fannie Mae and Freddie Mac from AAA to AA+.  S&P has also already begun to downgrade the credit ratings of states and municipalities.  Nobody is quite sure when we are going to see the dominoes stop falling, and this is not going to be a good thing for the U.S. economy.

#4 10-year U.S. Treasuries are the basis for a whole lot of other interest rates throughout our economy.  If we see the rate for 10-year U.S. Treasuries go up significantly, it will suddenly become a lot more expensive to get a car loan or a home loan.

#5 The current financial panic caused by this downgrade is hitting financial stocks really hard.  The big banks led the decline back in 2008, and it looks like it might be happening again.  Just check out what CNN says happened to financial stocks on Monday….

Financial stocks were among the hardest hit, with Bank of America (BAC, Fortune 500) plunging 20%, and Citigroup (C, Fortune 500) and Morgan Stanley (MS, Fortune 500) dropped roughly 15%.

#6 China is freaking out. China’s official news agency says that China “has every right now to demand the United States to address its structural debt problems and ensure the safety of China’s dollar assets”.  If China starts dumping U.S. government debt that would make things a lot worse.

#7 There are already calls for the Federal Reserve to step in and do something.  If the U.S. economy drops into another recession, will we see more quantitative easing?  It seems like we have reached a point where the Fed is constantly in “emergency mode”.

#8 The U.S. national debt continues to get worse by the day.  Just check out what economics professor Laurence J. Kotlikoff recently told NPR….

“If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That’s the fiscal gap”

Dick Cheney once said that “deficits don’t matter”, but the truth is that all of the debt we have been piling up for decades is now catching up with us.

The United States is in such a huge amount of financial trouble that it is hard to put into words.  The days of easy borrowing for the U.S government are starting to come to an end.  We have been living in the greatest debt bubble in the history of the world, and it has fueled a tremendous amount of “prosperity”, but now the party is ending.

A whole lot of financial pain is on the horizon.  Please prepare for the hard times that are coming.

  • PaulF

    “If China starts dumping U.S. government debt that would make things a lot worse.”

    No, Michael, this fear is a myth. Please see this excellent summary:

    http://globaleconomicanalysis.blogspot.com/2011/08/idea-china-to-stop-buying-treasuries.html

    • http://www.the-end.com KP

      But what about this one?

      http://www.project-syndicate.org/commentary/roach7/English

      There are lots and lots of opinions out there.

      • PaulF

        Good read. At least it does recognize the account balance question, which 95% of those spouting “China will stop buying our debt because our credit rating was slashed!!” do not.

        China in current account deficit by 2015?? I suppose just about everything is on the table at this point; that would really be a revolution in global economics.

        • Rev. Reggie Jackson

          China is hurting also. And that means that the whole world is in great financial trouble. And the only One that can fix things is God Himself and too many people will not serve HIm and get to know HIm.

  • Otown Right Guy

    Delusional sociopaths in DC like John Kerry are actually blaming the Tea Party, the only group that is actually trying to prevent this mess, albeit a bit too late.

    • bobbobbobbob

      thats were they put the homeless dead

    • Nexus789

      What do you think created the problem – idiot unfunded wars, stupid tax give aways, etc. This crisis started way before Obama was president and was created during the term of the older Bush and the two terms of the dimwit younger Bush. The Tea Party is a ridiculous organisation and the people that lead that have no idea. They could not organize a piss up in a brewery let alone be trusted to run a country.

      • PaulF

        Libbers always resort to personal insults of those they want to denigrate. Translation: “I hate these people, just because”. Good for you.

    • REED RICHARDS

      Otown Right Guy,

      KERRY IS TERRIBLE TO BE SURE, BUT IT’S NOT LIKE THE BILLIONAIRE KOCH BROTHERS’ TEA PARTY HAS THE SOLUTION TO ANYTHING:

      First, major collapses in the stock market are a good thing. Personally, I hope the stock market continues to tank and crumble because it has nothing to do with the “real economy”. Afterall, the stock market is merely a rigged rich man’s game where “small investors” need not apply.

      Second, the author of this article is wrong on two very important issues:
      A. The Asylum States of Amerika lost its AAA rating quite a long time ago. The ASA federal government should have been downgraded after the Vietnam war when Nixon closed the gold window.
      B. As for the so-called “winners” in the Debt Ceiling debacle, the winners were George W Obama and both wings of the war party, both Democrats and Republicans. The main purpose of this deal was to kick the can down the road, which all involved did, and to hide the fact that no one in Washington DC has any idea, much less the inclination, to do anything to stop the economic meltdown that has been witnessed. Wall Street has told the ASA government that financial armageddon will continue as scheduled, at which point, murderous austerity measures will be enacted on top of the brutal police state already in place.

      The only thing the author got right is the economic pain up ahead. He/She is right about that. This is what the people constantly vote for everytime they take to the polls and vote in the two wings of the war party. If you vote for the war party, in the end you will get nothing but deficits and bankruptcy induced pain, plain and simple.

      http://www.huffingtonpost.com/2011/08/08/mek-lobbying_n_913233.html

    • Rowell

      Unfortunately, you are incorrect. The Tea Party does own at least part of the blame for this. The Tea Party was correct in demanding that spending cuts be made. However, their tenacious view that no tax increases occur, even if those tax increases were through the removal of tax loopholes, wsa myopic at best….disastrous at worst.

      No, the Tea Party bears this disaster on their shoulders as well.

      • REED RICHARDS

        What is missing in all of this is the fact that the Asylum States of Amerika has no economy to speak of. Churning out braindead college grads who owe tens of thousands of dollars in student loan debt to move money around wall street 12 hours a day is not an economy, but a farce of an economy. Until the ASA goes out of the business of war and money counterfeiting and gets back to the business of business and making things again, then there is no way out of this financial meltdown, none at all.

    • DownWithLibs

      I see you caught on to that too. Our grand exalted ruler, in his address to the people, said that we need to get to the business of bring down the debt. WHAT DOES HE THINK THE TEA PARTY IS ALL ABOUT????? REALLY!!!!!!!!!!!!

  • Kathryn

    Your articles are always insightful, articulate and timely. I would appreciate any links to earlier articles to prepare for hard times ahead, as your current article recommends. Thank you.

  • http://leibowitzsociety.blogspot.com Leibowitz Society

    The language of the economy — fiat currency — and the oil of trust which greases the wheels and keeps them turning are turning to gibberish and rust respectively. People, in their gut, know that the show is almost over and it’s time to figure out how to get the exits before everyone else does. Only a few know the truth, that there is no exist when the world faces collapse.

    Visit the Leibowitz Society at http://leibowitzsociety.blogspot.com/2011/08/new-tets.html for more commentary on our failing civilization, as well as how to preserve our valuable knowledge for the future.

  • Rob Stoddard

    There are a few things that you can do to keep yourself on the straight and narrow.
    1) Short sell the dollar if you can afford to do so. To do this, take out a loan and buy gold with it. Pay the mortgage on it until hyperinflation strikes. This is what Soros is doing, I’d do the same if I wasn’t strapped as it is.
    2) Establish businesses for yourself. Look for needs and fill them. Be careful to not get mired in regulations. You’ll need more than one source of revenue.
    3) Look for other countries to stash your wealth. If the government starts stealing from people, you don’t want them to loot all of your cash.

    Good luck people, the party’s just starting.

    • PaulF

      Short the $ against WHAT? The euro? The yen? Neither are safe bets. The question is what fiat currency tanks further, faster, and there are no “safe” bets.

      • Save the Republic

        Against gold

  • stan

    Oh my. At this point in history with 100 things going wrong, we have the worst president that we have ever had. Who ever is second worse looks like Lincoln or Washington compared to this one.

    But really and honestly, Barack Hussein Obama is not the real problem. The problem is that we have citizens who would actually vote him in!!

    What kind of country is this that would become infactuated with a man like this who had no experience running anything or any qualifications to run a country? What the f- – -?

    That is why this country is about to collapse and that is why this country DESERVES to collapse. And it will. And it should.

    Voting for and electing such an idiot to run our country is the last and worst straw.

    • http://www.planorperish.com/ Gutter Economist

      The White House is the most expensive training school in the world but most Americans are more than willing to pay tuition.

    • sharonsj

      Stan, people voted for Obama because they wanted anybody but Bush. Obama was supposed to end Bush’s disastrous policies, but he has continued them.

      The solutions are actually simple, but they will never happen because most of Congress is corrupt. Social Security can be immediately fixed by raising the cap so that people earning more than $109,000 pay into the system. But the Republicans have been trying to privatize SS for years so that Wall Street can get its hands on the money.

      We need to end the wars right now. They accomplish nothing and cost about a billion dollars a week–which we borrowed. We’re in debt because Congress (mostly the Tea Party) refuses to RAISE TAXES or change the laws so that companies like ExxonMobil PAY FEDERAL TAXES instead of the ZERO they pay now.

      And now the Republicans are pushing for spending cuts, which means they will take money from the old, poor, and sick, so that the rich can keep their money. If the tax cuts actually worked, you’d see jobs being created. But no decent jobs are being created and they are still being shipped overseas (and the companies that outsource still get tax breaks, courtesy of the Republicans).

      Much as I hate the spineless Dems, the Rethugs are a hundred times worse.

      • Save the Republic

        Actually, that has been the dumbest argument the populace used to elect Obama. It just goes to show how stupid the majority of Americans are, since Obama was not running against Bush. There were plenty of other “anybody but Bush” out there. Most people just voted for Obama because they wanted to show the world we weren’t racist, that we could elect someone other than a white man. Unfortunately, they chose someone who had no qualifications, and really offered no concrete plan for change, just lots of rhetoric. I seem to remember him pledging to force companies to bring jobs back to America in one speech. What action has he even attempted on this issue? I haven’t heard or read of anything he’s even tried.

      • Macnasty

        Raise taxes, great answer I like it I really do, how much, how high,give money to people who do nothing but want more,give money to other countries to feed their populations,no I’m tired of taxes being taken yes the word is TAKEN from me to be pissed away.when did it become governments job to take care of folks who can’t or refuse to take care of themselves my father told me growing up the world dosen’t owe you S#$T so stop begging. work is the only answer to survive and thats why we do,

      • DownWithLibs

        Turn off CNN and get some fresh air!!!!!

    • mondobeyondo

      Well, I don’t know if Obama is the worst ever. Pretty stiff competition there. Warren Harding, Ulysses (Useless) S. Grant, Jimmy Carter, and the all time great failure, Herbert Hoover.

  • Gary2

    All that would have needed to be done was to tax the rich hard and corporations harder. Until this is done nothing will change. Even if taxing the rich 100% would not put a dent in things it would be a good start.

    • estamos jodidos

      G2,
      Your socialist mantra of stealing from someone else to give to others is getting old. The decline of this civilization will be traced back to the loss of individual pride and self respect. Our fate was sealed when we achieved critical mass of people who take PRIDE in getting something for nothing, because they deserve it. Thank you for doing your part in the creating the decline.

      • ScaryHaryGary2

        The government should tax the richest people in this country an extra 50 percent of their wealth, and give all that extra tax money to me!

    • Jean

      Gary,
      I notice you kind of have an obsession with that “tax the rich” which you repeat nearly daily, as if was a mantra.

      I am not rich, by any means (can’t afford to buy a house even) but I think my local country radio station made a remark about that this morning that was spot on. They asked: “Have you ever known a poor person who created a job?” I think he had a VERY good point there!

      And like it or not, the only job I know of created by a poor person was back years ago when I worked cleaning “cottages” for rich people off the coast of Maine, but I was hired (hence the job created) by a woman who was making $4/hr and organized a crew. We (the crew) got paid $3/hr.

      Do YOU have any examples of poor people creating jobs??

      • Gary2

        Every time a poor person purchases something they create a job. Isn’t this obvious?

    • PaulF

      Actually, what would “have been needed to be done” was to prevent the game from being fixed from the start. Big corporations rule the world because they can buy anyone.

      You propose your solution as a fundamental fix but it’s really a band-aid.

      You may want to do some reading about the Catholic concept of subidiarity. Put into practice long ago it would have resulted in the greatest material happiness for all.

    • PaulF

      Er, sorry, that’s “subsidiarity”.

    • McKinley Morganfield

      Read up on Maximilien Robespierre or Che or Pol Pot and you will find all your wishes fulfilled.

      “When you believe in things you don’t understand you suffer.”

  • 99er

    More good info. Thanks.

    We need to ask ourselves is there anything short of Divine intervention that will get us out from under this incalculable debt?

    Defending one or the other party is ridiculous as both have been complicit – albeit with different motives – in creating this mess since at least as far back as the Greenspan years.

    More than the outcome of the debt deal it was the pathetic bipartisan tantrum approach used in its negotiation that led Standard & Poor’s to downgrade. S&P realized, like the rest of the world, that this Congress is incapable of solving anything.

    Looks like another bad one for the markets tomorrow – unless you own gold which is up another $28 on top of todays price at the close – $1742 now at 10PM 8/8/2011

    • PaulF

      Well put!

    • DownWithLibs

      $1,776 @ 11:02am 8/10/11!!!!!!!!!!

  • http://www.planorperish.com/ Gutter Economist

    The U.S. stock market is falling for technical reasons that have been well documented for many months.

    http://www.planorperish.com/?p=5000

    The debt ceiling deal and the U.S. debt downgrade are just convenient cover stories. There is no fear on wall street. Insiders are selling this market short and love every new low set by the major averages.

    Well, Barack Obama and the Democrats get the debt ceiling raised by over 2 trillion dollars and will not have to worry about it again until after the 2012 election.

    Since U.S. debt has reached the saturation phase, any additional debt will accelerate the coming economic collapse. The Democrats just steered the Titanic into a second iceberg.

    If the U.S. economy drops into another recession, will we see more quantitative easing?

    The last recession never ended so we will see more quantitative easing but again this will fail to stimulate the economy for the reason above (debt saturation).

  • the Beast

    When the bubble party is over, then we will see the beginning of the end of post-colonialism/imperialism world.

  • Colin

    The analysts at Standard & Poor stated as one of their reasons for the downgrade is the inability of the two ruling political parties to work together.

    Furthermore, the analysts write, “The majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act.” Many in the Tea Bag Party believe in not raising revenue.

    And, yesterday, members of the Tea Party celebrated the downgrade:
    http://www.youtube.com/watch?feature=player_embedded&v=Z1NagON189g

    Honestly, I am dismayed by the response to this downgrade. In the past 24 hours, I have seen people discrediting Standard & Poor and blaming the other party.

    • PaulF

      “Tea Bag Party”: Colin, you may be into unnatural and disgusting sexual behavior, but you just might be the only one here.

      • DownWithLibs

        You can always tell someones intelligent level – or lack there of!! – by the number of colorful metaphors in their sentences.

  • LoveYourEnemies

    So here is the plan. We, the People, print a note for two quadrillion dollars and make the FED and all banks take it as full payment of all global debt owed them. With this payment they will relinquish all claims, encumbrances, liens for all debts public and private on the entire planet. Call it a global “reset button”. They must place the note in a vault under the highest security and be able to produce it on demand. This note will pay off all home mortgages, car loans, business loans and the like and everyone will own all property in their name free and clear. Also all municipal loans, derivative contracts, pension funds and the like will be declared fully funded and solvent. All accounts will be declared paid in full and will be settled immediately. However, no one with a net worth greater than 10 million dollars will be able to buy anything with the proceeds in their settled accounts but must keep their “money” on account perpetually and the interest earned will be distributed to the citizens of the country in which the accounts reside. Think of it as fighting fiat with fiat or as a haircut for the uber rich.

    • mondobeyondo

      I propose that the U.S. Mint make one giant gold coin, approximately 12 feet across. Use the gold from Fort Knox, if there is any left. Print on it, “Payment for the National Debt, U.S. Federal Government, 2011″, and put a nice big picture of a vulture on it. (It is not worthy of a picture of a bald eagle.) And then deliver it by armed guard to Tim Geitner’s doorstep.

      Oh never mind. Just a drop in the bucket, but as Confusions, er, Confucius would say, “The journey of a thousand miles begins with a single step”.

  • 007

    Market is crashing but gold is going to Pluto. Bernanke will start QE3 any day and gold will likely go to $2,250 an ounce.

    The credit rating always was a joke. I don’t believe that is why the market is crashing. If the credit rating downgrade was responsible, everyone would not be flocking to treasuries.

    The market is crashing because now Italy and Spain are going broke. The PIIGS are going bankrupt and no one wants to keep lending them money. Of course, the ECB will start printing money to buy their debt. This will stop the immediate crisis but it will fuel inflation.

    This will be another reason why gold will rise. Everyone should stay away from the stock market. It is following a pattern that looks eerily like the great depression.

  • http://TheRaptureCult.com Scott

    Michael, thank God you’re back. Was starting to get a little worried.. As usual, very solid intel. Thanks, Scott

    • Michael

      Well, I am still in the middle of moving so it will be a few more days until things are back to “normal” :)

      Michael

      • DownWithLibs

        If only there was a “normal”. I think that ship has sailed.

  • 007

    The amazing statistic for this year is that the FED has purchased 90% of our debt this year by their own admission. Now they claim they have quit buying, we will see how long that can last.

    I will bet anyone a Obamaburger we see QE3 within a week.

  • Ken

    I sold over 50% of my stock before this crash. I should of sold more, this thing is going down. Our leaders are doing such a poor job, I have to wonder if they are crashing the economy on purpose.

    • JasonD

      Yes. They want a one-world government and they know that the only way to get this is to let everything come crashing down so that they can come riding to the rescue as knights in shining armor. People will be so desperate and broken down that they will joyfully accept their new global-techno-neofeudal totalitarian masters.

  • Citizen S

    SURPRISE!!! This was a telegraphed punch from the S&P. Our officials don’t listen but wanna point fingers in blame!! They were warned!! I just hope that all that have the ability to grow, process, and store food are paying attention!! Our government is a joke people and anyone that doesn’t see it, is just as big of a joke!! Sadly though…. The ones that are intelligent enough to see this but ignore its happening are gonna be the ones scrounging dumpsters for food!!! No thanks!! I’m really not a gloom and doom type but really???? What is it gonna take to see this and get rid of these career politicians??!!?? Thankfully I have 3 acres of garden and 2 homemade wind turbines that produce surplus electricity!! Stock up people, wake up sheeple!!

  • Mark

    I hope your move was good and I hope that you bought a farm. This site has helped in warning folks to get prepared for hard times. I should do it now if you are not yet ready. If you need info about, check out how or what is needed to prepare at lds.org. A paper writen by Ezra Taft Benson / october 1980 called Prepare for the Days of Tribulation is a good one.

  • NAGA

    One thing that people need to understand is, Government is out of control, out of their minds and playing with peoples’ lives. They don’t have a clue what they are doing. And the sooner people realize that, the better off they’ll be.

    • http://www.planorperish.com/ Gutter Economist

      If congress can not come up with a better job creation plan, the US economy will be fixed by a reduction of the US population.

  • Jackson

    Only AA Rating and the market panics like this?

    It should probably be rated as junk.

    • Rev. Reggie Jackson

      If it is acting crazy about being AA rated; what in the heck is going to happen when it is just a plain A rating? Will this trigger the stock market to crash and burn and have stock brokers jumping out of windows again!!?? And if they jump out of windows without Jesus in their lives; they will keep falling to hell without even a stop off.

  • Shane

    100% correct.

    “25 billion dollars is not even 1 percent of the federal budget. The U.S. national debt continues to spiral wildly out of control, and our politicians could not even cut the budget by one percent.

    We are on a crazy train to destruction. It is just a matter of time before it derails. None of the politicians are facing cold hard reality. The Federal Reserve needs to be abolished. The too big to fail debt needs to be written off. The derivatives can not be paid back. Mathematic certainty.

  • Colin

    Continuing from above-

    The situation is worsening. Our economic system is sick, and there may be no cure.

    I discovered this article on The Automatic Earth blog – http://www.spiegel.de/international/world/0,1518,779008,00.html

  • DM

    There is biblical proverb which says “He who pays bribes to the rich and the poor comes to poverty.”

    Our country is paying the price for its manipulation of the markets. Financial incentives to get people to invest, financial incentives to get people to buy housing, incentives to get business to hire, incentives to get people to buy boats, corn, planes, incentives to get people to go to school, incentives for farmers to grow crops, incentives for farmers not to grow crops, incentives for companies to hire abroad, incentives for companies to hire domestically, and so on.

    Our tax laws are like Swiss cheese—full of holes. The government needs to get out of the business of manipulating markets. People will buy houses whether they can write off interest on their mortgages or not. Why? Because they will always need a place to live. People will buy boats, planes, etc. if they need them or want them. Farmers will grow crops if those crops are profitable. They do not need $.62 of every dollar they earn coming from the government.

    If capitalism is so great, then why does the government have to prop it up. Government needs to get out of business of manipulating markets and let free market capitalism do what it is supposed to do.

    Instead, government should be watching out for abuses in markets. Sadly, our government is not doing that very well.

    The good news is that the Heavenly Father will put hooks in our leaders’ noses and bits in their mouths and lead them in the direction He wants them to go. S&P is a hook and a bit.

    • PaulF

      “If capitalism is so great, then why does the government have to prop it up?”

      We don’t have free-market capitalism – haven’t you figured that out? We have corporatism.

      • Gary2

        Capitalism is inherently a flawed system with way too many boom/bust cycles. It needs to be tempered with socialism for it to be more stable and to work for everyone and not just the rich.

  • http://thecivillibertarian.blogspot.com/ Frankenstein Government

    It’s about time. I’ve been looking forward to this. Really. http://thecivillibertarian.blogspot.com/2011/08/thankfully-its-time-for-bitter-harvest.html

  • fading banana republik

    Is hopey changey when 100% of GDP goes to pay the interest on the debt?

  • Greg Jameson

    Fannie Mae and Freddie Mac get a double A rating from S & P. What a joke. The emperor has no clothes and we are no longer afraid to say it. The fools that did not pack a parachute by buying gold and silver will ride the dollar devaluation down. Once the currency is thoroughly devalued this corrupt government will issue a new currency at a 10x negative exchange meaning 10 US dollars will exchange for one of the new currency.

    Also cash in your 401k plans and take the 30% tax and penalty. Better that then taking a 70 – 90 % drop in the value of your currency. Another thing is that the corrupt US government will start looking at assets and decide who gets SS and Medicare and who does not. The stupid savers with all their devalued cash still in their 401k’s will be denied SS and Medicare because of saving and will have no choice but to pay their own way or turn the 401 plan over the the corrupt government and settle for substanstially reduced government retirement benefits. Oh by the way the 40 million illegal aliens will get citizenship then full retirement benefits after never paying a dime into the system There will also be another wave of 60 – 70 million illegals afterward but by then it wont matter.

    Enjoy your day brave and free Americans!

  • Paul

    Better read Ludlum: “The Matarese Circle” to get an idea of what is coming. If the riots in England are copied elsewhere, life as we know it is coming to an end. Police, fire services, ambulance and hospitals will be stretched, any virus will have it easy.
    And try to go shopping when the mob is out.
    Try to get medicines from a looted pharmacy.
    MY next shop: hardware. Metal boxes to bolt to the floor to keep stuff inside. And plastic boxes to bury in the garden to keep stuff.

    • Jean

      Paul, Try googling “flash mob” or flash mob crime+USA … this had already been happening here, albeit in small doses for several months now.
      ~Jean

      • Paul

        The interesting part:

        The Internet is available worldwide.

        There were riot inducing messages on BlackBerrys in England referring to “feds”. This term is very unusual in referring to cops and government. It is not English, it is American.

        Maybe the sender wasn’t English, maybe he has his knowledge from movies? Maybe he is from overseas? Who knows?

  • Paul

    Well, who would want to buy US treasuries?
    Their value would drop. And they would be paid for in US Dollars.
    Then China would dump the US-Dollar and buy what? Renminbi?
    Wasn’t that what they refused to do for ages?
    Or would they buy Euro, propping up the Euro?

  • r.bitting

    While the markets were still tanking on Monday, Rush Limbaugh made an interesting statement on his radio program. He said to look for the Fed to flood the S & P Futures market by buying up a ton of shares to give the illusion that people, ( after they listened to Obama’s press conference on Monday afternoon )were reassurred by his words of confidence in the ability of the U.S to pay it’s debt, so that on the following day the market would have this incredible rebound. The fact that this rebound would not be based on any positive economic data would tip you off to what the Fed was up to. He stated that this would not be the first time the Fed has done this, it has happened before.

    • JasonD

      It’s called the Plunge Protection Team (PPT) and it was hard at work today

    • sharonsj

      Excuse me, but anything Limbaugh says is conservative propaganda. I stopped listening years ago when he said oil spills were good for our waterways.

      He’s on every day so I can’t get away from him when I’m in the car. Last week the lying fuck said this summer was totally standard and that no heat records were broken. After all, global warming is a hoax, isn’t it? Well, check the internet listings and you’ll see tons of articles about the 55 BROKEN HEAT RECORDS!

      And nobody knows what the market will do because it’s a total scam run by the investment banks’ and hedge funds’ computers.

    • PaulF

      Of course. Google “Plunge Protection Team”.

    • Gary2

      Rush Oxycontin pill-head limbo, what a joke. I would be embarrassed to quote anything he says.

  • Paul

    China could sell US-treasuries and buy US real estate with their brand-new USD.

  • JohnFromIreland
  • Sailor Trash

    Tea Partiers were actually cheering the credit downgrade at a rally recently, as if they were proud of it. So, nice work there.

  • ScoutMotto

    The fat lady has started to sing, and she is singing with a wonderfully-crisp and loud voice. Folks should go out and get some cases of long-term storeable food while they can. There is also talk of what may be a prelude to WW3. Strange days these are, indeed. If given the choice between facing today, and going back in time to a bad childhood, which would you prefer?

    • Highspeed

      I choose today. These are exciting times. We are watching prophesy unfold. If you have faith in God, there is no need for a fantasy life. Yes we will suffer, but, compared to the glory that is yet to be seen, it can be considered our light affliction. ” Seek ye the Lord while he may be found”.

  • Patriot alice

    QE3 to the rescue any day now…All of the same remedies of the last downturn are being implemented again and again, because they just don’t know any better. The Feds want to keep themselves relevant, but won’t be effective….I think the Feds should just let the markets find their own bottom.. Stop printing money and stop borrowing because they are impoverishing our country with their policies…..

  • ViewFromAbroad

    @ the Editor:

    There are a lot more of interesting things in the S&P Report:

    “The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. (…)

    Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending (…) It appears that for now, new revenues have dropped down on the menu of policy options. (…)

    The act contains no measures to raise taxes or otherwise enhance revenues (…)

    Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise
    revenues, a position we believe Congress reinforced by passing the act. (…)

    We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an
    agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process.”

    http://i.usatoday.net/money/_pdfs/11-0805-us-debt-rating.pdf

    As you can see: S&P lowered the rating not solely because of too much spending, but also because of the unwillingness to raise appropriate revenue.

  • Jake

    Watch what the Chinese are doing with all the dollars they have. They are buying hard, real assets around the world. Gold and silver mines, copper mines, oil and gas fields, these guys are not stupid. They are turning the worthless paper into something of value.

    As we hear them scold us on the international stage for our reckless financial course remember this:

    “The borrower becomes the lenders slave.” Proverbs 22:7

  • Dave in Scenic City

    Given S&P’s bogus AAA ratings for mortgage backed securities right up until the 2008 crash, they have proven themselves to be thralls of their Wall Street customers and have no real credibility. Before I took S&P’s downgrade too seriously, I’d like to look at what the mega banks and hedge funds accomplished on the trading floors over the last few days by shorting stocks — even their own stocks for that matter. Bottom line always is to follow the money.

  • Donald Wilson

    You can thank the politicos over the past 50 years of deficit spending. The end game is approaching and it sure won’t
    be pretty.

    Bravo 2 out

  • http://placeofrefuge2012.com Sheila

    It was only a matter of time, now that the time has come………. get ready……….. Chaos is coming on a fast train!

    http://www.placeofrefuge2012.com

  • Gary2

    “Delusional sociopaths in DC like John Kerry are actually blaming the Tea Party, the only group that is actually trying to prevent this mess, albeit a bit too late.”

    That’s because the stupid tea baggers ARE to blame. They are a bunch of low information people who are very easily manipulated by the rich and corporations. If they were not such a pathetic bunch I could almost feel sorry for them. Do you really think any of them even really know what a deficit is? They need to deal with their mental deficit.

    • PaulF

      Gary, do you use a homosexual slur against Tea Party patriots because you like or dislike homosexual behavior?

    • McKinley Morganfield

      Logic and proportion have fallen soggy dead in Gary2 utopia.

  • JackieR

    Welcome back Michael. Hope your move was not too difficult & you are settled in OK.
    Just read 2 articles from ‘blacklistednews’.
    One where Italy invaded 2 credit rating agencies in their country, one was S&P. I think the other was Moody. Talk about sending a message.
    The other was pictures and article of Ben Ber. getting soused and making statements about how the economy is much worse than the public has been told, the unemployment rate is really 16% and only the few in govt know how really bad everything is.
    Is this news agency credible? This is very powerful stuff.

  • McKinley Morganfield

    This morning US markets are experiencing the proverbial “dead cat bounce” lifting the DJIA above 11,000. We can expect to be whiplashed by volatility for the next few weeks as we approach the typically troubled waters of October. However, I don’t believe the drop to AA+ was the real driver of yesterday’s 650 point plunge. I believe most of that panic sell off was due to the news from the EU. Italian and Spanish banks are teetering towards collapse. Many hundreds of billions of newly minted Euros will be up in smoke in the attempt to save what is in reality too big to save. Through the back door Bernanke will also attempt to forestall the inevitable with billions of QE3 flooding into the European banking system.

    The big crash will start in the Euro zone. Everyone should stay attuned to the tremors in the EU for that is what will make your main point (#1) readily apparent to everyone and usher in the greatest depression in all of human history.

    • Michael

      Good points McKinley

      Michael

    • Jake

      McKinley,
      Keep your eye on Unicredit the Italian bank.If it goes under it could be the tipping point. We’ve been getting that warning for months now even before we knew Italy was in big trouble.

    • WeHaveASoul

      That was a careful thought McKinley, thank you for sharing it. It’s well known that QE billions are flooding not American but world economy with Extra liquidity, paralizing the banking system. It seems, more i feel like Bernanke will continue his QE’st over Euro until it falls first. It would ensure there is no safe deposits and no investment can be made, no hideout to survive a perfect storm. Whatever seemed stable before, it shakes, every local currency, yuan, euro, pound, everything. So, what is the plan? I mean i can’t believe that is just a falling, it is so naive. It does not really look like a free fall, it looks like it detonate at will, it explode to ensure everything will fall flat down. Don’t call me a tin foil guy but i’m sure some of the disasters was triggered by a paper ink. It’s all was well masked in the panic. To ensure the fall, to make it unprecedent, to take off media attention until it would be too late. I’ve remind the China recently asked for a hard currency, world backed currency. It was suddenly snip my ear and made me thought of a global dollar reset. Likewise the dollar was not really the American currency or at least not national, whatever printed on the note. It was designed to be a global currency and the plan has to be fulfilled soon.

    • 007

      The ECB will just print money to buy their debt. Even worse the ECB can borrow from the FED to lend to these bankrupt countries and banks. We will be stuck living with the inflation and paying “our fair shar” of the debt that results from these bail outs.

  • MDK

    God is in control. Trust in Him.

  • Harold Crews

    Many of the politicos and pundits dismiss S&P’s downgrade on the basis that they were wrong back in 2008. But that is specious reasoning. Moody’s and Finch were wrong back in 2008 also. Plus the same politicos and pundits were wrong back in 2008. If anything S&P’s shoddy record creates additional doubt on the credit worthiness of the US. S&P has a bias towards optimism as shown back in 2008. The credit rating should have been cut further. Lastly if the rating had been cut ten years or so ago the debt would not be as nearly large as it currently is and there probably wouldn’t have been a housing bubble. S&P downgrade is too little, too late.

  • JackieR

    Just checked ‘Blacklistednews’ and those articles I mentioned are gone. I heard that the govt was policing the internet.

  • Hosanna

    Growing up watching The Brady Bunch and Gilligan’s Island I never imagined that the people who run our country would be every bit as much paid-for actors as the individuals on those shows.

    This is such a charade. Do they get secret envelopes that tell them what lines to read the next day delivered to them at night? How do they communicate with each other to know how to line everything up so that the plot line works each week?

    Just like a child watching the tube I guess I’ll never know how it all works together. I just watch and ohh and ahh over this week’s episode.

    And like children watching a plot unfold it all seems a bit unreal and if we wanted to change the plot how could we do it? Voting for new actors would not work. They will simply read the same lines but with slightly different accents and wardrobe changes.

    I guess it depends on what pet theory we each hold. Will the aliens come in to save the day and then get out their cookbook, or will the beast rise from a head wound to promise peace and then sell us out.

    Is it at all possible that this plot can be saved by a white knight who restores us to our former safety and security? I sure would love to go out disco dancing again.

  • israel ybarra

    pinches gringos!!! now you are starting to suffer. After hell of a long time that you discriminate against mexico, now you will be even worse, because your arrogance and pityless with a neighbour country.

    good luck find a job! anf getting paid low, just what you real economy and salary must be. no fake ¨prosperity¨ based on debt. jajaja

    • Save the Republic

      Screw you. We owe you and Mexico nothing. Get out and find a job in your own country, you leech.

  • SMASH THE CONTROL MACHINE

    They sent my Census form back! AGAIN!!! In response to the question: Do you have any dependents? I replied 12 million illegal immigrants, 3 million crack heads, 42 million unemployable people, 2 million people in over 243 prisons, and 535 IDIOTS in the U.S. House and Senate. Apparently, this was NOT an acceptable answer!PS dont forget 45 million on food stamps and all the corporate welfare and farm subsidies!!!!

  • JR

    People need to get a grip on the truth. Obama doesn’t care about saving America from anything. He wasn’t placed in office to do anything but destroy America for his bosses in foreign countries. His presidency is a sham.

  • Kenw

    Gary, you are one of the most ignorant people I have ever heard. Your whole life is based on envy, a very pathetic trait. I’m sure your hatred will rot you from the inside

  • Jack

    There is no remedy to be found,capable of curing the ills of this unlawful money system.

    Babylon,and her wicked ways,are crumbling right before our very eyes.
    Babylon had her chance at usurping God’s sovereignty,and she has utterly failed.
    Like the walls of Jericho,Babylon will fall when the trumpets of the Jubilee sound.

    Be patient,and of good courage,and behold with awe,as God casts down the filthy whore of Babylon,and places her under His feet.

    If you love me,keep my commandments. – John 14:15

    Thou shalt not steal.

    Usury is theft,the way of Babylon.
    Abandon it,and obey God,there is no other way out of this mess.

    Battle lines have been drawn,and His Kingdom is coming..

    With whom do you stand?

    • Rev. Reggie Jackson

      Yes Jack – Babylon will fall; but first it will enslave the whole world and make it take their zombie making and mind controlling mark of the beast chip that is spoken of in Revelation 13 and 14. And things will get worse because China will dump our US government debt.

      And why are so many people blind and ignorant when they say, “another US recession.” We have never been out of the recession since late 2007, thanks to those banker devils. And the wicked former VP, Cheney said that debt doesn’t matter. Why did he say this? Because Cheney is a globalist puppet insider; and he knows that the whole financial system will crash and we will go into their One World Economic System!

      • James R

        How about dropping the Rev. tag? Is there a man on earth worth calling Reverent? Only the Lord God deserves to be reverenced, revered etc.

      • jim

        The tower of Babel is shaking isn’t it?

    • ItIsHere

      Unfortunatly many have been blinded to this thruth. We can not stop it from happening and we will be better when this rotten system is gone.I for one am ready for God’s kingdom. Bring it on.

  • Mad Max

    I’m concerend but not affraid anymore. Americans are starting to wake up and it’s about time.

    America is starting to organize. Join the Revolution for direct democracy in America. It’s time for Real government by and for the people.

    Read “Common Sense 3.1” at ( revolution2.osixs.org )

    We don’t have to live like this anymore. We don’t have live like slaves to big business, the banks, government and Facebook…

    “Spread the News”

  • Dr. Nancy

    The future gets scarier and scarier
    doesn’t it.

    Fortunately a friend told me
    about a site put together
    by a millionaire.

    The info can help anyone prepare
    for an uncertain future.

    Here it is-

    How to Profit like the Ultra-Rich in Times of Economic Chaos

    Complimentary Video here-

    http://theelevationgroup.net/presentation/register.php?a_aid=160667&a_bid=290b868b&chan=y

  • http://www.phantomreport.com Blake Douglas

    To JackieR
    Police raid Milan offices of Moody’s and Standard & Poor’s
    http://www.guardian.co.uk/world/2011/aug/04/police-raid-milan-moodys-standard-poors

  • Gay Veteran

    What must we do?

    Get money out of politics. The korporations, Wall Street and billionaires OWN both parties and Obama.

    Destroy the Big Banks. They have committed massive amounts of mortgage fraud and securities fraud and many bankers belong in jail (just like after the S&L crisis). Plus the Big Banks are bankrupt.

    END THE WARS! We can no longer afford empire and our over 800 foreign military bases, along with the Security/Surveilance apparatus.

    Stop korporations from moving MILLIONS of American jobs overseas. Have tariffs on countries with near slave labor conditions and no environmental laws.

    Have the Veterans Administration run health care, it is extremely efficient. We spend more per person than any European country because of the SickCare industry is draining us dry.

    That’s a start towards sanity.

  • mickey the pirate

    Relax and enjoy the show. I have grown to understand this thing and I am not worried any more. I understand that this is one more step towards something better… Freedom. We will live in fear and be slaves as long as debt exists. Personally if you owe nothing to anyone, you sleep well at night and really have little fear of anything. But you know, even if you are deeply in debt, when you die, the debts stop there. Your overlords cannot make anybody else pay your debt (except your spouse or business partner). Thus, you are square with the bank and with your kids. sadly, government debt is far more evil than any mortgage (“mortgage” from latin means “contract unto death”) because when you die you pass the debt on to unborn generations. Sadly when you increase government debt you enslave your own children and grandchildren into debt slavery. If you remember your US history, one kind of slave was called an indentured servant. This form of slavery was declared illegal, which is why the US bankruptcy laws were created..so people would not become debt slaves. In 2005, the government took away that freedom from most people and declared some forms of debt inescapable..such as student loans or taxes. Now, lets look at this from the viewpoint of a 5 year old who is totally innocent of everything. “Bobby, I have a great plan that I am starting. I am going to make laws that force you pay for me to live in comfort, to take care of me, to buy my food and medicine, and you will also have to pay for any other stupid crap I want to blow your money on. I can also make you pay for farmers who grow nothing, and for wars that are unimportant to our national needs. Because I love you my son, I will only have the government take 50 or 60% of every dime you make for the rest of your life. When your kids are ready for collage and you cannot pay for it, I really won’t give a crap since I will be in my condo on Miami Beach enjoying the best years of my life.” If Bobby understood..he would be upset, because you just made him your slave.
    I think that we have no right to enslave the next generation for our ability to live beyond our means, and this immoral (and in my opinion illegal financial slavery) has to end. Therefore, lets default. Lets declare national bankruptcy. Sure it will be painful, but so is pulling a rotten tooth. You deal with the pain now and get it over with. How will this effect us? We will go through a few months of complete financial chaos…and then things will get better…far better, because you will be free. The power of the bankers and Wall Street and the filthy rich will be smashed. Bobby, and every other child will grow up free of financial repression, free from debt slavery free from being indentured servants without their permission. You too will benefit.. The government would be reduced to a small thing. Taxes which are a terrible burden would become almost nothing if we reduced the size of the federal government to even 20% of its current size. We could also come up with some constitutional protections so this never happens again such as balanced budget ammendment, public funding for all political campaigns..(I would rather pay up front for an honest election than see how much more it costs when a bribed politician writes laws to pay back his/her benefactors…I think some things could be put into practice as a public benefit for all people like universal healthcare..not run by some private for profit companies or with some parasite insurance company sticking their fingers in the pie…just doctors and healthcare providers getting a federal paycheck to work at their trade..their job would be simple..heal anybody who walks into the office. We could have the national labs or FDA for that matter manufacture medicines for fractions of a cent per pill and we could give them away…you see, in most of the civilized world, people have basic human rights..one of them is the right to access to healthcare..In our current for profit system, if you get sick the extortionists will take everything you have in trade for your life or feeling better…sounds like a worse form of the mafia to me.. Break the corruption there too.. Anyway, a financial collapse is the first step to a better world..lets get on with it and set generations of American children free from the stupid pact we made with the devil to enslave them to pay for our undeserved lifestyles.

    • 007

      Have you checked lately what your and your family’s share of the national debt is. We are all in this.

    • Save the Republic

      Good points. I don’t know if we will ever get the political changes unless it is done by force though.

  • http://renomic.blogspot.com/ Renomic

    Do not think that QE3 will be the same as previous 2. But the fact that they are running out of ideas of how to repair the fragile economy will be worst.
    (http://renomic.blogspot.com/)

  • .

    The author and all of the respondents are idiots blatantly ignorant of even simple economics.

    • Michael

      All of us?

    • Highspeed

      Is that all you got. You come in here and call people names and then leave. How about proving your point Mr. . My five year old grandson could do better.

    • mondobeyondo

      Whoa, you should head over to Sherwin Williams and get a bigger brush. The one you have isn’t big enough to paint everyone…

    • 007

      Very reassuring. Glad you could explain it to us. Seems to me you arrogant liberals don’t even attempt to understand or acknowledge the most basic economic concepts. I am sure you would not even acknowledge the law of supply and demand. Much less, could you understand the inflationary effects of unrestrained monatization of the national debt.

      If we are so wrong, I hope you will prove us wrong by investing your life savings in the stock or bond markets. Better yet, get rich shorting gold. Come back and tell us how great you did.

      Tell Krugman, Rubin and Bernanke we are tired of paying for their incompetence. They have misread the economy so often, it no longer amazes me. Their ignorance and amazing lack of understanding are only outdone by the horrible consequences they have brought on our economy by following their advice.

    • Save the Republic

      How so?

    • guitarman

      Oh? What is your solution? Why don’t you enlighten us on “simple economics”? You know what is simple? Don’t spend more than you make.

  • El Pollo de Oro

    The fact that The Banana Republic of America (formerly the USA) has lost its AAA rating from Standard & Poor says a lot about the country’s deterioration. This is a country that is in serious decline; the American economy is nothing more than a Third World ponzi scheme at this point, and things are only going to get worse. Gerald Celente has said that the BRA is the world’s first un-developing country, and he is absolutely right. From an ever-weakening dollar to sky-high deficits to brutal unemployment to a crumbling infrastructure to a dying middle class, there is no denying that the BRA is now part of the Third World.

    “America is headed for an economic 9/11.” —Gerald Celente

    “We’re going to go into a depression that’s going to be worse than The Great Depression.” —Gerald Celente

    “When this thing collapses, you won’t be able to get your money out of the bank. They’re gonna do it like they do in every Third World country. Our forecast is for a bank holiday and a formal devaluing of the dollar.” —Gerald Celente

    Welcome to the fall of the Roman Empire. Welcome to the Third World nightmare that is The Banana Republic of America, formerly the USA.

  • mondobeyondo

    Ah, nothing better than using a couple of Band-Aids and some aspirin to cure a raging case of Ebola virus infection.

    Standard and Poor’s knows that our finances, in their present form, are unsustainable. There is a 100% risk of failure/collapse within the next decade. S&P saw right through that rose-colored spin that the mainstream media, Congress and President Obams sprung out.

    “This is the United States of America… regardless of what any agency says, we are a triple-A country.” — Obama, 8/5/11

    No, sir, we’re not. Not anymore. We USED to be. But we’ve rested on our laurels. It’s 2011. We’re busy giving each other high-fives (i.e. USA! USA! We’re Number ONEEEE!), while the rest of the world is slapping us in the but-tocks, as Forrest Gump would say. We’d better get our act together, fast. Before China decides to give us a boot-kick in the but-tocks.

    (Okay, I’m an optimist at heart, sooo… A 99.3% risk of failure/collapse before 2027. Feel better now?)

  • 007

    I hope everyone will take this opportunity to get out of the market on these up days. Bernanke’s statement today was very weak. I have a feeling, when everyone thinks about it, they won’t be comforted very long. It certainly will not fuel a new rally. I believe the market will be very volatile until Bernanke announces QE3. It will then likely rise for a very short time once this is announced.

    Word on the street is that QE3 will invoke a nuclear option of keeping the 10 year T-bill at under 2% interest until further notice. This may well be the last card in the FED’s deck. That means unbridled money printing and debt monitization for the forseeable future.

    This will cause rampant inflation which the FED will deny exists. It will cause inflation around the world and the dollar will tank even further.

    Boy will this piss off the Chinese.

  • al

    bye, bye, Mrs american pie

    • Zedge Hero

      Al, your comment inspired me to write the following……..

      Long Long Time ago…..
      I can still remember
      How that money used to make me smile.
      And I knew if I had my choice
      That I could hear those peoples voice
      And, maybe, they’d be happy for a while.

      But September 08 made me shiver
      And I began collecting Silver
      Bad news on the doorstep;
      I couldn’t take one more step.

      I can’t remember if I cried
      When I read about the housing slide,
      But something touched me deep inside
      The day the money died.

      So bye-bye, to the American lie..
      Drove my stock to the top,
      And the market went dry.
      And them Wall Street boys were thinking risky with lies
      Saying’, “this’ll be the day that we die.
      “this’ll be the day that we die.”

      Did you write the loans for the Bank,
      And do you have faith in Ben Bernank,
      for if the Government tells you so?
      Do you believe in too big to fail,
      Is you house or car for Sale?
      And can you teach me how to refinance real slow

      Well, I know that you’re still in love with this
      cause I see it in your complete abyss
      We really both can choose
      Man, I hate those derivatives too.

      I was a lonely disgruntled American buck
      With a sick sensation that started to suck
      But I knew I was out of luck
      The day the money died.

      We started singin’,
      “bye-bye, to the american lie.”
      Drove my stock to the top,
      And the market went dry.
      And them Wall street boys were thinkng risky with lies
      Saying’, “this’ll be the day that we die.
      “this’ll be the day that we die.”

      Now for three years we’ve been on our own
      While Bank’s got fat on a rollin’ loan,
      But that’s not how it used to be.
      When geithner says live within our means,
      As A puppet from the powers that be
      But a silence came from you and me,

      Oh, and while the US was looking down,
      China is stealing it’s thorny crown.
      Europe union was adjourned;
      Another bailout was returned.
      And while Obama read a book on marx,
      The people protested in the park,
      And we sold gold in the dark
      The day the money died.

      We were singin’,
      “bye-bye, to the american lie.”
      Drove my stock to the top,
      And the market went dry.
      And them Wall street boys were thinkng risky with lies
      Saying’, “this’ll be the day that we die.
      “this’ll be the day that we die.”

      bets, and debts in a summer sweat.
      The stock fell off cause of Euorpean debt,
      World Markets high and falling fast.
      It’s still too high for the price of gas.
      The politicians debt bill did pass,
      With downgrade rating in a flash

      Now the European air was filled with fumes
      All the riots were just starting to exhume.
      We all got up to fight,
      Oh, but we never got the right
      `cause the FED tried to print some more
      The money they added was making us poor.
      Do you recall the horror
      The day the money died?

      We were singin’,
      “bye-bye, to the american lie.”
      Drove my stock to the top,
      And the market went dry.
      And them Wall street boys were thinkng risky with lies
      Saying’, “this’ll be the day that we die.
      “this’ll be the day that we die.”

      Oh, and there we were all in one place,
      401 k’s all lost in space
      With no time left to start again.
      So come on: Ben be nimble, Ben be quick!
      The Federal Reserve and that magic stick
      Cause the printing press is the devil’s only friend.

      Oh, and as I watched him on the stage
      My hands were clenched in fists of rage.
      No angel born in hell
      Could break that Chairmen’s spell.
      And as the Gold climbed high into the night
      To light the path that was actually right,
      I saw Bernanke laughing with delight
      The day the money died

      He was even singin’,
      “bye-bye, to the american lie.”
      Drove my stock to the top,
      And the market went dry.
      And them Wall street boys were thinkng risky with lies
      Saying’, “this’ll be the day that we die.
      “this’ll be the day that we die.”

      I bought some gold and sang the blues
      Hoping for some happy news
      Banks got tired and burned away.
      I went down to the coin store
      Where I’d bought silver years before,
      But the man there said my money wouldn’t pay.

      And in the Wall street: the brokers screamed,
      The CEO’s cried, and oil creamed.
      But not a word was spoken;
      The global markets all were broken.
      And the two men I admire most:
      Ron Paul and the Thomas Jefferson’s ghost,
      They caught the last train for the coast
      The day the money died.

      And they were even singin’,
      “bye-bye, to the american lie.”
      Drove my stock to the top,
      And the market went dry.
      And them Wall street boys were thinkng risky with lies
      Saying’, “this’ll be the day that we die.
      “this’ll be the day that we die.”

      they were even singin’,
      “bye-bye, to the american lie.”
      Drove my stock to the top,
      And the market went dry.
      And them Wall street boys were thinkng risky with lies
      Saying’, “this’ll be the day that we die.
      “this’ll be the day that we die.”

  • Green Mountain

    Things are so ridiculous right now in England that if Charles Dickens were alive today, he’d become a supporter of Ayn Rand.

    Talk about an absolute and global repudiation of liberal-Progressive ideology, child rearing, and behavior….that is, to those who are paying attention.

  • Gary2

    Why does anyone give any creditability to these scum, bag rating agencies???

    They were rating AAA the crap on wall street that helped crash the economy

  • marsha

    we have got to get rid of obama and all his socialist cronies. we are headed down faster than you may think

    • Gary2

      I wish obama was socialist. Loose the fox news BS and look at what this “socialist” has done-same bush policies.

      Only someone who does not think for themselves would ever accuse obama of being a socialist.

  • Stolengoat

    29 years old, 1 month old lil girl, selling the crap outta ADT security systems to scared folks just like me. Saving my measley greenbacks for an AR and a basement full of green bean. How the phuck did we get here??? How is it possible that a small town kid like me, with just a high school education can see the writing on the wall but so many around me just swallow the piles of shat the fat cats on the hill and in the media dish out. I got news for all of us. This ain’t the country my grandpa fought and toiled his life away to pass on. We are sick and the colon cleansing is about to begin. I asked my mama what she wanted for christmas, she said “Good will on earth and peace for all men” I handed her a Bushmaster AR-15 told her “It was a do it your self project.” Good luck folks, I’ll be holding out in Southern IN. Eating good, right next to a thriving Amish community. One hand on my rifle the other on my fishing pole. Country Boys Can Survive

  • http://www.carlpeterklapper.org Carl Peter Klapper

    The opinion of the credit rating agencies should not matter at all. As a sovereign country, the United States of America has not, does not and will not need to borrow money for any legitimate purpose approved by its people. The credit rating downgrade, the default hysteria and the debt crisis itself is a massive charade and fraud perpetrated on the American people. The solution to this contrived crisis is simplicity itself:

  • http://www.endtimeinfo.com Stephen

    I just obtained your article published on the following website which has a lot of similar very interesting articles of many world effecting subjects which you might all find interesting. Most of the comments made seem to be spot on!
    My personal conviction is that,things have to get worse before they can finally get better,as the whole world is “un-done” because of the Merchants as listed in the book of Revelations Chapter 6 and Chapters 17 and 18 and shows the consequence of their corruption and iniquities.
    May God help all of the innocent little people who constantly suffer at the hands of the Merchants.

  • http://www.endtimeinfo.com Stephen

    The following website which has a lot of similar very interesting articles of many world effecting subjects, which you might all find interesting.See:- http://www.endtimeinfo.com

    Most of the comments I have read to your article seem to be spot on!
    My personal conviction as a Christian is that,things have to get worse before they can finally get better,as the whole world is “un-done” because of the Merchants as listed in the book of Revelations Chapter 6 and Chapters 17 and 18 and shows the consequence of their corruption and iniquities.
    May God help all of the innocent little people who constantly suffer at the hands of the Merchants( the invisible government)

  • http://globaleconomicwarning.blogspot.com Global Economics

    CAN YOU BELIEVE THE ULTRA-RICH ARE PROFITING FROM THESE TIMES OF ECONOMIC CHAOS!
    (click on my profile name to go to my blog to see full video)

    watch the 7 lifecycles of a country to see why we are going bankrupt and what we all need to do right now… see how the top richest people are protecting themselves and their families and how you can do the same

    I’m posting my blog video here because I need to reach out to the real people who are effected by the Global Economic Crisis. Please pass this video on.

  • jerry O

    The market continues its downward spiral. We are repeating the same mistakes they made just before the crash in 1929.

    We never seem to learn from history.

    When will the government quit spending more of our money than they are taking in?

    I’ve pretty much taken all my money out of stocks, and was searching for something to do with it when I found this site put together by a millionaire:

    How to Profit like the Ultra-Rich in Times of Economic Chaos

    Free Video here-

    http://theelevationgroup.net/presentation/register.php?a_aid=160667&a_bid=290b868b&chan=y

  • http://globaleconomicvideo.blogspot.com Max Fortunes

    BILDERBERG 2011 MEETINGS: Economic Collapse – Imminent Global Financial Crisis and U.S. Dollar Collapse!

    *** globaleconomicvideo.blogspot.com ***

    I’m posting my blog video here because I need to reach out to the real people who are effected by the Global Economic Crisis. Please pass this video on.

  • Chu M.

    Government is only thinking of
    what will get them more money
    and get them re elected.

  • http://www.moneyteachers.org/Bernanke+October+Stock+Crash.html Chase

    Ben Bernanke’s announcement that the Fed would be investing in long-term bonds yesterday, instead of the stock market, looks like it has triggered the October 2011 Stock Market Collapse I have been predicting since January. The S&P fell 35 points after the announcement, the Dow fell 300 points and according to the futures market, today could be another equities bloodbath!

  • http://www.naturalgasstocks.org/category/uncategorized/ Energy Stocks

    Excellent post. Personally, I’ve been analyzing natural gas stokcs for a while now and I see a lot of potential in this coming decade or so. The commodity natural gas is about 10x cheaper than right now, however analysts say that by 2016 we’ll begin to see the price of natural gas soar in response to higher demand. I’ve been watching small cap companies too like Alon U.S. Energy Partners, whose stock soared nearly 56% in a 2 week stretch.

Ready Made Resources
Shocking Forecast
Thrive Life
FEMA Hates This

Austin Coins
High Blood Pressure?
FINCA BAYANO
Survive After Collapse

Silver.com

Camping Survival
GunMagWarehouse.com
SFC_The-Video-They-Tried-To-Ban_125
Print Friendly and PDF
Facebook Twitter More...