Yet another massive warning that WE DON'T NOT HAVE ANY MONEY
By andy77e
@andy77e (5156)
United States
August 5, 2011 8:48pm CST
http://www.bbc.co.uk/news/world-us-canada-14428930
Today... S&P has reviewed the situation at the Capital, and realized, we're sinking deeper in debt (what a shock).
Amazingly, they had the guts to set themselves up as a political target, by serving their customers in warning that the US really isn't able to pay off our debt.
They have down-graded the US government AAA rating, to AA+.
What does this mean exactly? Two things. First, it means that the people who are giving money to the government are realizing that we might not be able to pay it back. Which means that they will demand more interest, or refuse to loan us cash.
This is what happened in Greece, for reference. Greece couldn't afford to pay the higher interest payment, which forced them to go to the European Union to get a bailout. And we've seen how that has gone.
Second, because the interest payments will undoubtedly increase, this will force the government to conclusively deal with the issue one way or another.
They will either pass higher and higher taxes, which will ruin the economy more, or they will cut benefits which will only hurt the people who foolishly made themselves dependent on government. Or a combination of both.
But either way, unless the train changes track now, I can see a head on collision in the future. If the government refuses to pay more interest, we'll see a crisis in the bond market.
1 person likes this
4 responses
@ParaTed2k (22940)
• Sheboygan, Wisconsin
6 Aug 11
Of course, they won't even consider the third alternative... cut out the known fraud and waste. That would save hundreds of billions.
@ParaTed2k (22940)
• Sheboygan, Wisconsin
6 Aug 11
Here are the first 50 examples, but I'm sure there are more...
http://www.heritage.org/Research/Reports/2009/10/50-Examples-of-Government-Waste
@stary1 (6612)
• United States
6 Aug 11
ParaTed2k
I too believe there is a lot of waste. With waste comes some fraud. We all know the government is not run efficiently yet so little emphasis seems to be put on eliminating waste. Oh it's part of every candidates campaign rhetoric, but when push comes to shove, it doesn't seem to get done on any meaningful level.
Granted I don’t know just how much impact it could make but I am sure it could make some.
@laglen (19759)
• United States
6 Aug 11
That head on collision you mentioned, is happening now. Our economy would be improving now had government stayed out of it. Too big to fail is a fallacy. We keep throwing good money after bad and banks and car companies are still going to hell. The banks for instance, should liquidate some assets, specifically the foreclosed homes that they are sitting on because they don't want to lower the value of property. But either way you slice it, they will continue to go down.
The criminals (Congress) are trying to save face. It is time to suck it up, and as the smart one - Obama, says, eat your peas.
@andy77e (5156)
• United States
7 Aug 11
I'm not so sure about that.
Nothing is set in stone. The government *could* choose to cut spending, and turn this thing around. It is not 'too late' by any stretch.
The question is, are they going to do it, and is the public able to handle the fact we don't have any more money.
1 person likes this
@bobmnu (8157)
• United States
7 Aug 11
the problem with the "solution is that it is temporary and will need another fix later. The only way the government can truly cut the spending is not to reduce every department a little bit but to take a serious look at what departments are required by our Constitution and start to eliminate the rest. Do we need a Department of Education with a SWAT team? Do we need an energy department that is to make us less dependent on Foreign Oil that is restricting domestic Production? Do we need an Environmental Protection that will let you pollute if you pay them enough (buying and selling Carbon Credits). the answer is to eliminate whole departments, sell other to private concerns. Change Social Security and Medicare to private Defined Contribution Plans and away from Defined Benefit Plan.
I am sure that there are many other Departments that could be eliminated or privitized and they should be looked at.
@Adoniah (7513)
• United States
6 Aug 11
Too little, Too late, Too much hypocracy, Too much dirty laundry hanging on the line for the world to see....
