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Mass downgrade… — 8 Comments

  1. True, and the Republican candidates should point to Europe and say, “Look at your future under the current administration.”

  2. Bill: This is the FedGov’s future under any administration that doesn’t stop deficit spending. Now, not under a 10-year fantasy budget.

  3. Anyone who did not see this coming has not been paying attention. The amount of debt around the globe, both public and private, is staggering. Here is a list of sovereign debts that must be refinanced this year; this is not new, planned borrowing to fund 2012 deficits, but old debts coming due:

    Japan: 3,000 billion
    U.S.: 2,783 billion
    Italy: 428 billion
    France: 367 billion
    Germany: 285 billion
    Canada: 221 billion
    Brazil: 169 billion
    U.K.: 165 billion
    China: 121 billion

    http://tinyurl.com/7yxm4f7

    foxmarks says, “Now, not under a 10-year fantasy budget.”

    You are correct and there is no real possibility that DC (or the public) has the will to rein in the deficits or start paying off the 16 trillion federal debt

  4. In case anyone was too hopeful, add in all the State and municipal bonds maturing this year.

    I don’t have a handy figure for 2012 maturities, but total debt outstanding appears to approach 3,000 billion. Out of the air, I’ll say we’re looking at another 100-150 billion needing rollover this year. States and cities do not have the ability to raise their debt ceilings. Historically, politicians do not allow muni defaults, so this debt ends up on the FedGov’s balance sheet.

  5. “States and cities do not have the ability to raise their debt ceilings. Historically, politicians do not allow muni defaults, so this debt ends up on the FedGov’s balance sheet.”

    Don’t worry, be happy; Bernanke will buy up those debts and declare all is well as the Fed creates another X trillion for QE4. Get ready for hyperinflation and buy a wheelbarrow to cart cash to the grocery store to buy a frozen pizza.

    BTW, I have not filed for social security benefits, although I am eligible, but I think I will apply soon just to do my small part in hastening the process of the collapse of SS. My wish is for major contraction asap instead of massive contraction within a 12-18 months. The bond vigilantes are experiencing itchy trigger fingers. The coup de gras approaches.

  6. BTW, this late but inevitable credit down grade (it should have been more severe) is the most important event of the last few months aside from BHO demanding the debit ceiling be raised to 16+ trillion. It is much more important than Romney, Newt, Obama’s last vacation, etc. However, I can not help but notice how few comments this thread has generated. I conclude that even at neo-neocon few want to face economic/financial reality.

    I’m a skydiver and this looks to me like the global economy will reach jump altitude before 2012 ends and everyone is preparing to exit the jump door and launch into free fall without a parachute. Yet, many people who are active on this blog, most more worldly intelligent than I, appear to shy away from this topic. Why?

  7. The Left plans to simply print more money in order to pay for more stuff plus the debt.

    The Left also is doing engineered crisis economically and militarily.

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