Sunday, August 7, 2011
The Cat Is Out Of The Bag—Tighten Your Belt
As I read in the news, Standard & Poor's has cut the U.S. long-term credit rating from top-tier AAA to AA-plus on Friday; I recalled a conversation with a friend of mine who is a Professor of Finance in a prestigious school. We were discussing America’s future and I expressed my opinion that the dollars dog days are about to begin, as countries will move away parking their money in US Treasury. My friend shot back, “Where else are they going to put their money?”
This morning, just one day after the downgrade of the U.S. long-term credit rating, China's official Xinhua news agency said in a commentary, "The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone."
The last week had seen wiping off $2.5 trillion from the global markets, which happened after the investors' concern grew of an impending recession in the United States, and over the growing euro zone crisis. Finance ministers and central bankers of the Group of Seven major industrialized nations are to confer via telephone to discuss the impact of this earth shattering news on the financial market since this singular act has heaped gas over the global fire, aided by the mess of euro zone debt issue.
The Xinhua commentary proclaimed, “China, the largest creditor of the world's sole superpower, has every right now to demand the United States address its structural debt problems and ensure the safety of China's dollar assets.” They stressed that the United States need to cut military and social welfare expenditure world economic recovery.
Hello, wake up sheeple, your Master is speaking!
President Obama appealed to lawmakers this morning to “set aside partisan politics and work to put the United States' fiscal house in order and refocus on stimulating its stagnant economy.” Thank goodness my President, you now understand that our economy is in shamble notwithstanding your endless euphoria over market recovery and the bright days ahead.
If you realize our economy is stagnant, my President, why did you sign the debt deal into law, last week, which is only going to worsen it? You say, you had to compromise, why? Just the other day, Bill Clinton, a two-term President suggested that you invoke 14th amendment and tell the Tea Party terrorists who took the nation’s economy hostage—take a hike, No Deal, there will be no discussion on debt limit?
What were you smoking my President to believe that spending cut will create jobs? Econ 101 says that to create job you need to spend money. The only solution to our problem is to roll back the Reagan Tax, and you did not even give a hint of understanding this when you said this morning, “Congress to back measures to give tax relief to the middle class, extend jobless benefits and pass long-delayed international trade pacts.”
Pass the long-delayed international trade pacts? The trade pacts are the reason why we are here today. Stop drinking cool aide, read Tomm Hartmann’s Rebooting American Dream, understand the basics of economic growth. I Of course, I know the reason why you say what you say—you take your lead from Tim Geithner, the prodigy groomed by the infamous trio, Robert Ruben-Larry Summer-Alan Greenspan. Just watch how the Maestro talks about the fallacy of the philosophy he preached , Alan Greenspan, the supreme economist of the capitalist world speaks like a broken man and admits that his belief in lifelong philosophy that unbridled capitalism is the bane of the market is wrong, his faith in market controlling itself was wrong .
In an interesting twist , the Republican Presidential candidate Michele Bachmann called for Treasury Secretary Timothy Geithner's resignation, and the House Speaker John Boehner said Democrats “who run Washington remain unwilling to make the tough choices required to put America on solid ground.” This is called the ultimate spin, first create the crisis and then blame it on others, and it can only happen in America, since people have turned sheeple—busy in watching “I Love Lucy,” and totally oblivious of finding out what is happening around them.
Bachmann said, “President Obama has destroyed the credit rating of the United States through his failed economic policies and his inability to control government spending by raising the debt ceiling.” How many people can see through this sham logic? Timothy Geithner is practicing what Bachmann preaches. He is implementing conservative policies, just as his gurus the trio Robert Ruben-Larry Summer-Alan Greenspan practiced. The last Democratic President was John Kennedy, after that all Presidents followed the dictate of Corporate America, Jimmy Carter included.
The political quibbling will only get worse from here, blame game has only started, the cat is out of the bag though, the future of this country has been written, and I do not see the word prosperity written anywhere except on the faces of a few handful billionaires.
Forgive me my dear Americans for being the harbinger of the tough time, feel free to shoot the messenger though, if that brings solace to you.
First published on Technorati