Moody's Tells U.S., Great Britain, France And Germany: Cut Spending Or Pay Higher Interest
Would that be Moody's, the same rating agency that certified big steaming piles of mortgage manure as Triple AAA-rated securities and collapsed the international economy? I guess this means that Wall Street wants us to cut the deficit, huh. Well, I'd say what's good for Wall Street is bad for America:
The United States and other top world economies need to make potentially painful government spending cuts or risk losing the high-grade credit ratings that have kept borrowing affordable, the Moody's rating agency said Monday.
Moody's warns nations to cut spending or risk AAA ratings
European officials hold off on bailout package for Greece
Outlining the dilemma faced by policymakers in the United States, Great Britain, Germany and France, Moody's said that debt levels in the four large credit-worthy economies had reached the point at which they are at risk of being downgraded -- a step that would drive up interest rates, increase borrowing costs and mark a turn in perceptions about the world economy.
Economic recovery might ease the problem by increasing tax revenue, Moody's reported, but "growth alone will not resolve an increasingly complicated debt equation. Preserving debt affordability at levels consistent with AAA ratings will invariably require fiscal adjustments of a magnitude that, in some cases, will test social cohesion."
The dollar rose against major currencies despite the report, a reminder of its continued role as the world's reserve currency.
The agency said a downgrade did not appear imminent and expressed confidence that the four countries would come to grips with their fiscal problems. Germany, the report said, has included a new debt provision in its laws, and the United States has established a commission on spending reform.
We need a private debt jubilee - for the hoi polloi of course.
And not for the fatcats.
statusquObama, change you can only pretend in
of course, the OBVIOUS thing to do would be to nationalise the banking systems. Then, private banking systems couldn't complain, because they would no longer exist.
Sovereign nations cannot go bankrupt if they own their economy.
It's called the American Dream because you have to be asleep to believe it.
-George Carlin
That would solve the problem, especially if at the same time the Fed was abolished, we got rid of the fractional reserve
scamsystem and eliminated Moodys and the other bond ratings houses. The bond ratings houses have a long history of manipulating bond ratings to either boost their own income or, in collusion with bank, to drive business that the finance gangsters want to take over out of business. They serve no one but themselves and care nothing about the well-being of the society upon which they prey. the world would be better off if none of them existed.pockets of investment bankers since the 1990's..Goldman,Merrill, and Bear Sterns all took advantage of the this to get muni issues to market!
Rating agencies are part of the problem!
What's Moody's gonna do? Call God and tell him to smite the nation's of the world?
The Chinese will still buy the debt. The countries will raise taxes...on the rich (THAT'S how you get even with these jerkoffs for even making this pathetic demand), and the shell game will continue.
"Anyone that makes less than $150K in this country, has no business voting Republican."
What, no call for higher Taxes to fight the deficit?
"Moody's Tells U.S...." The U.S. should be telling Moodey's that they have the right to an attorney.....
Why are these assholes taken seriously after their enabling of the banksters who crashed the economy?
They should be making their bullshit pronouncements from behind bars.
them AND their Bankster buddies ..
Democracy is too important to be entrusted to politicians.
Rise Up!
Protest!
lined up against the wall...
I'd rather see them pushing up daisies…
statusquObama, change you can only pretend in
Where's the fun in that.
I say we strip them and make them pull carriages around Central Park.
"Anyone that makes less than $150K in this country, has no business voting Republican."
But then again...some of them may like that.
"Anyone that makes less than $150K in this country, has no business voting Republican."
They could get whacked, take a dirt nap, or go swimmin' with the fishes, or take a walk in concrete overshoes.
To quoth the Great Cornholio
"Are you threatening me?"
http://www.youtube.com/watch?v=vD1_GikiTMU
Is this retalitory for any investigation why they gave AAA status to essentially on worthless paper?
Diabolus est Deus Inversus
we decide whether to meet their demands.
"I mean Romney is the most conservative on illegal immigration and I don't think Ronald Reagan could get elected in California today."
Ann "Clipped" Coulter
There is no amount of financial or political chicanery that can get either of those two asshats Triple A rated.
"Anyone that makes less than $150K in this country, has no business voting Republican."
Those demons aren't worth the flesh they've chosen to animate.
moodys: when a credit ratings agency loses all credit
Moody's was more neutral in its language than the WaPo article indicated. Yes, one can read between the lines and infer that Moody's would rather see spending cut than taxes raised, but at least as I read the quote, it left the door open for revenue-side measures as well:
"[G]rowth alone will not resolve an increasingly complicated debt equation. Preserving debt affordability at levels consistent with AAA ratings will invariably require fiscal adjustments of a magnitude that, in some cases, will test social cohesion."
Well, I don't see anything particularly inaccurate about that statement: Preserving debt affordability means reducing the deficit, at the very least, and hopefully the debt itself, as well. That means "fiscal adjustments," which can be spending cuts and/or tax increases, of sufficient magnitude to close the gap.
In other words .. cut social spending to the bone .. and then cut into the bone ..
Cuz of course military spending, and corporate profits, and bankster bonuses, and obscene profits, and tax relief for the rich, are ALL sacrosanct .. it's the working stiffs who are expected to take the hit .. not the sanctimonious scamsters who live off OUR labor without doing a lick of real work ..
The ONLY good that can come from this is that the WORLD POPULATION rise up and put these parasites in their place .. and nice cozy concrete cell with no sunlight ..
Democracy is too important to be entrusted to politicians.
Rise Up!
Protest!
in some cases, will test social cohesion."
Don't threaten us with a good time.
Who do these assclowns think the great unwashed will turn on first.
Gated communities? I suggest they start digging moats.
"Anyone that makes less than $150K in this country, has no business voting Republican."
democracy v. capitalism
Hanging vs shooting
"Anyone that makes less than $150K in this country, has no business voting Republican."
tarring vs. feathering
Sometimes its best to get to the end game quickly.
"I mean Romney is the most conservative on illegal immigration and I don't think Ronald Reagan could get elected in California today."
Ann "Clipped" Coulter
'Test Social Cohesion' simply sounds like 'start a pogrom against the rich' to me! The rich have money. I know one hell of a lot of 'poor' people that are armed to the teeth and would welcome a chance to stick it to the assholes that laid them off, took their homes, stole their retirements, and tell them they can't get medical care......
just amputate.
Strange, that about wars, bailouts for rich gangsters and the well-to-do criminal class. They never have to make any sacrifices or face the smallest uncertainty..
This is the kind of thing that violent revolutions of born of. These asshats think that they are immune, that their mind control/brain washing of the unwashed masses is unassailable.
I guess we quit borrowing and just start printing up the cash we need. Can anyone say 'Quantitative Easing'? We don't HAVE to have a Federal Reserve you know. Doesn't the Congress have the constitutional power to regulate (create) the currency? Of coure, we the people will need to wrest control of that beast away from the corporations that are their masters today, but that can be done. We the people could then borrow money without inflation er, I mean 'interest'.
democracy that works. They've got the money, but even the clownact majority of the Extreme Court can't give them the vote, regardless how much they try to nullify democracy by giving them unlimited powers to interfere with the electoral process. Getting rid of the Fed and nationalizing banking needs to become a major objective to resotring government of, by and for the People. It's going to take a Congressional house cleaning in order to get the job done.
Or another revolution.
... he'd declare Moody's actions a threat to the American way of life, state that they had sided with the terrorists (after all, if'n you ain't fer us, then you must be against us, and that makes you a terrorist) and then we'd bomb these Moody's people back to the stone age.
That Obama fellow, on the other hand, is probably going to try that wimpy negotiation stuff, and turn us all into green-eyeshade wearing financial sympathizers or something.
he would use it to push for privatizing social security
Samson, your likely correct.
Bush would spew some nonsense about "not living within our means" and how "people took on obligations they knew they couldn't support, and thus HURT THE BANKERS" and because of these deadbeats we need to end ALL social services.
"Anyone that makes less than $150K in this country, has no business voting Republican."
clear and present dangers....
the same "Moody's" that was told how to rate the mortgage backed securities by Goldman Sachs. The same Goldman Sachs that securitized/ "packaged" the subprime mortgages they knew would default.
that has so infiltrated our government.
..isn't it time w, cheney, et.al., be charged with being the terrorists they are? Consider, the goal of al-qaeda crashing planes into the WTC was not just to kill civilians but to disrupt our economy. Look at the economic mess we're in and about to be in if Moody's downgrades our bond ratings. Consider the damage of the loans to be paid to China resulting from the illegal invasion of Iraq and the care of the service men and women wounded and maimed. And now, in stressed economic times, we have to cut spending? Where will it be cut from? I'm not betting the MIC is worried but if I'm a teacher or a student or a resident of a town with a sewer system, I might be more than a little concerned.
Arrest the criminals and try them for their crimes! Restore our status as a nation of laws not of men.
Mickey: "It was an epiphany. Do you know what an epipany is?"
Keoni: "NOT NOW MICKEY!"
WHY-O-WHY are we still listening to these clowns??
They helped, in more than one way, to almost collapse the entire world's economy and now they're trying to tell the same governments THEY (Moody's) lied to about Swaps, Derivatives, and all-things sub-prime, that they (governments) - collectively - need to get their house in order?? They're (both) are as bad as these brainless, pee-baggers who march up and down the Washington mall like automatons almost on a daily basis!!!
Pick up a copy of "The Big Short: Inside the Doomsday Machine", by Michael Lewis and it will tell you all you ever need to know about listening to Moody's - it is stupidity.
I would trust the word of Moodys about as far as I could throw them.
http://www.youtube.com/watch?v=qLgdcGEqgcw
Diabolus est Deus Inversus
funny how everybody criticizes moody's for maybe downgrading.
moody's wrong again, but only so far that it still rates the US triple A.
the US won't repay its debt. it's either default or default by inflation.
This article is very telling: http://neithercorp.us/npress/?p=268. It talks about how the U.S. is HELPING China secretly exit its bond holdings, how the federal reserve is now buying its own debt to keep prices stable while it moves into SDRs (IMF global currency not available to the general public), and how this is all being done in preparation for a big downgrade of the dollar.
The rich have an exit strategy. You should too! Soros recently added gold to his portfolio. Gold may not be good currency, but in times of crisis it has value.
Not to worry folks. The USA will probably inform us that Moody's is hiding weapons of mass destruction and, in the near future, we will invade them, making sure to murder a large number of innocent bystanders in the process. Then we'll occupy them for a few years just to make sure they don't continue to jeopardize our credit standing.
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