How do the democrats claim to have any moral or fiscal authority to discuss Social Security?
DEBT CRISIS: THE GOVERNMENT SCREWED THE POOCH ...

NO, NO -- YES, YES: THE TRUTH ABOUT THE RATINGS DOWNGRADE?

There is no doubt in my mind that the major financial institutions are driving political policy as we approach the 2012 presidential election cycle.

So, with all the screaming about the potential of a ratings downgrade if Congress does not raise the debt limit  and the president fails to sign the legislation into law … the truth of the situation appears to be far different from the media’s spin.

Now that the Boehner bill has passed in the House and Senator Harry Reid has said it would be tabled, what can we make of this kerfuffle?

1.  It is likely that the Boehner bill will be gutted and some portion of the Reid plan will be placed in its legislative language. The bill would then be “reconciled” in the back room and sent on to President Obama. Whether or not Obama will sign the bill is anyone’s guess.

2.  This crisis was man-made by the Congressional democrats who failed to produce an acceptable budget and continue to demand higher taxes and continued spending based on the grossly-inflated budgets that include previous spending hikes.

3.  A ratings downgrade simply means that the interest rate paid on United States debt would increase.

Those purchasing debt securities would receive a higher return on their investment – which is a desirable outcome from their standpoint.

The taxpayers would be stuck with paying more for borrowed money, bad for the taxpayers – a desirable outcome for the socialists who want to redistribute the nation’s wealth.

The Wall Street Wizards would have an expanded market with investors churning old investments into new higher-rate investments. Since they generate a commission on all buy-or-sell trades, their business would improve.

Those holding maturing securities and bonds in their portfolio would be able to invest in higher rates – the major institutional investors will be happy.

The Federal Reserve would raise the Federal Funds target rate and investors will be happy – although this action could lead to stagflation; a very, very bad outcome for the nation’s economy.

Who to believe ?

At this point, all we can do is wait and watch as the major political and financial players jockey for advantage. And hope that the American citizen/taxpayer does not get crushed in the process.

Personally I put the blame on Obama and the Congressional Democrats – reserving some portion for the moderate “go along to get along” RINOs who are willing to sell out their constituency for their own self-interests.

BUT WE WILL REMEMBER WHAT IS DONE COME 2012 AND SEEK REDRESS – THROWING THE BUMS OUT AND REALLY CHANGING THE SYSTEM.*

-- steve

* My best friend Al does not believe this is a likely outcome.


“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS

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