So we have been downgraded, now what?
CMR bud David L. Alexander pointed us to this excellent article at Hotair by Ed Morrissey regarding the potential ramifications of the downgrades.
Ed suggests, and I tend to agree, that while the downgrade doesn’t help and is not welcome, it might not be that bad. There are far greater threats to our economic future.
I highly suggest you read Ed’s “Life after D-Day”
Do it. Do it now!
August 6, 2011 at 11:20 pm
Just a thought — did China repay the USA for all the food, ammunition, fuel, arms, airplanes, and other material sent to them during WWII? Did China ever build a modest memorial to all the Americans who died to free China from Japanese occupation?
August 7, 2011 at 6:03 am
Here is Karl Denninger's take:
http://market-ticker.org/akcs-www?post=184102
A few of his observations:
•Within hours of the passage of the bill more than half of the authorized increase in the debt ceiling (the first tranch) was blown and gone as Geithner unwound all the screwball theft games he had played for the previous two months. More than $200 billion instantly vanished. The scale and price of his deception was instantly laid bare upon the table, as was our fiscal trajectory, since June is one of the heavy tax receipt months (estimated taxes.)
•In calendar year 2007 GDP was $14.3 trillion, more or less. The actual borrowing increase was $548 billion. The Federal budget was $2.73 trillion. To balance our fiscal house we would have had to cut 20% of the Federal government – in 2007.
•In the last year GDP was $14.8 trillion, more or less. The actual borrowing increase was $1,700 billion. The Federal budget (which was never actually passed and signed, a rank violation of Constitutional requirements) was $3.8 trillion. To balance our fiscal house we would have had to cut 45% of the Federal government – more than double the 2007 figure.
•To bring the economy into balance debt must not grow faster than GDP. In a time when GDP is shrinking debt must shrink faster, not grow faster. This is basic exponential mathematics.
August 7, 2011 at 9:04 am
He's really a great actor. His movies are legendary.
August 7, 2011 at 5:26 pm
If standing in bread lines is what it takes to make Obama a one-term president, then I'm willing to do it. I hope our nation is brought down to its knees and all of us have to stand in bread lines. Then we'll be sure to make Obama a one-term president. We need to focus on our goal: to make Obama a one-term president. This is the only reason that I'm hoping unemployment and the economy get even worse. Thank God for the Tea Party!
August 8, 2011 at 4:48 am
I hear what you're saying Anon 12:26, but I really wonder if the majority of the electorate is smart enough to connect the dots. Be assured, more money will be found to keep those who elected Dear Leader the first time occupied with bread and circuses come election time.