Obama Destroying America's Credit Rating

[Shady]

Dollar hits '09 low on rating fears

LONDON (Reuters) - The dollar fell to a 2009 low on Friday as fears intensified that the United States could lose its triple-A rating, while renewed caution about the world economy and banks prompted Asian and European stocks to slip.

The dollar's latest decline started when ratings agency Standard & Poor's cut its ratings outlook on Britain to negative from stable, stoking fears other AAA-rated countries which are running huge debt levels could share a similar fate.

AP

Yeah, a 2 trillion dollar deficit this year, with at the very least, trillion dollar deficits as far as the eye can see, even when they're predicting solid economic growth will do that to one's credit rating. Good job Boy Wonder Obama! Hope n change!

[August1991]

Yeah, a 2 trillion dollar deficit this year, with at the very least, trillion dollar deficits as far as the eye can see, even when they're predicting solid economic growth will do that to one's credit rating. Good job Boy Wonder Obama! Hope n change!

Shady, you'll love this link as much as my cat loves raw hamburger meat.

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Note to others. US federal government debt is now around 60% of US GDP. (Obama proposes to increase this federal debt by about 12% of GDP this fiscal year.) In Japan, central government debt is about 190% of GDP. Japan is still a civilized society with a functioning government. The US federal government can borrow alot more.

As I have often argued, the problem with government is not its ability to borrow or to tax; the problem is its ability to spend.

Since the State (politicians and bureaucrats) has access to our bank accounts and credit cards, they can spend the money of other people - under the penalty of a jail sentence if you don't pay your taxes. It is this ability to spend other people's money (with impunity) that is the flaw in the modern State and in Leftism.

Edited May 23, 2009 by August1991

[Shady]

Shady, you'll love this link as much as my cat loves raw hamburger meat.

Great link. It's fascinating, but also scary at the same time. And watching the changing numbers real-time is kind of mesmerizing.

Note to others. US federal government debt is now around 60% of US GDP. (Obama proposes to increase this federal debt by about 12% of GDP this fiscal year.) In Japan, central government debt is about 190% of GDP. Japan is still a civilized society with a functioning government. The US federal government can borrow alot more.

Ture, but taxes will rise, as well as the annual interest on the debt, which will start to significantly crowd-out their yearly spending budgets.

As I have often argued, the problem with government is not its ability to borrow or to tax; the problem is its ability to spend.

Since the State (politicians and bureaucrats) has access to our bank accounts and credit cards, they can spend the money of other people - under the penalty of a jail sentence if you don't pay your taxes. It is this ability to spend other people's money (with impunity) that is the flaw in the modern State and in Leftism.

Exactly. Not only spending other people's money, but other generation's too. The consequences keep getting kicked down the road.

At least Obama is getting closer to reality.

SCULLY: You know the numbers, $1.7 trillion debt, a national deficit of $11 trillion. At what point do we run out of money?

OBAMA: Well, we are out of money now.

[Moonlight Graham]

shady, guess you weren't a fan of Reagan, Bush Sr., and Bush's massive debt spending either? http://en.wikipedia.org/wiki/National_debt...sidential_terms

Reaganomics is total B.S. He racked up more debt than any non-wartime President since before WWII. Even LBJ and Nixon managed to actually reduce the debt despite Vietnam.

[Sabre Rider]

shady, guess you weren't a fan of Reagan, Bush Sr., and Bush's massive debt spending either? http://en.wikipedia.org/wiki/National_debt...sidential_terms

Reaganomics is total B.S. He racked up more debt than any non-wartime President since before WWII. Even LBJ and Nixon managed to actually reduce the debt despite Vietnam.

Those graphs put the boots to the myth that Republicans/Conservatives in the the US are fiscally responsible don't they? But I doubt Sandy along with the other "true believers" will have much to say on the matter, especially since you have taken a shot at Saint Ronnie.

Edited May 24, 2009 by Sabre Rider

[Oleg Bach]

Those graphs put the boots to the myth that Republicans/Conservatives in the the US are fiscally responsible don't they? But I doubt Sandy along with the other "true believers" will have much to say on the matter, especially since you have taken a shot at Saint Ronnie.

How can anyone use the term "fiscally responsible" when those in government all over the world imagine money as being an endless stream with no bounds - and to politicals it's free - free for the spending - and of course there are no limits - you just print more or state that you have more - a nation can state that it is trillions of dollars in debt and it really does not mean anything - it does not shut down because of the debt or respond to the debt responsibly - what good would it do? The numbers are so high that they mean nothing - not to us or the government.

[Sabre Rider]

How can anyone use the term "fiscally responsible" when those in government all over the world imagine money as being an endless stream with no bounds - and to politicals it's free - free for the spending - and of course there are no limits - you just print more or state that you have more - a nation can state that it is trillions of dollars in debt and it really does not mean anything - it does not shut down because of the debt or respond to the debt responsibly - what good would it do? The numbers are so high that they mean nothing - not to us or the government.

Who said that they actually were fiscally responsible? Read closely and you will see I said:

Those graphs put the boots to the myth that Republicans/Conservatives in the the US are fiscally responsible don't they?

It long been a squawking point of Conservatives, especially those south of the border, that they and their party and their party leadership are soooo much more fiscally responsible then liberals. Sad fact is, many actually have convinced themselves that that myth is true and nothing is going to change that belief. Kinda explains why we also still cling to religion. Proof is not required, just faith in the myth.

[ironstone]

Gee,why is everyone so edgy in here?There is nothing to worry about any more from this point on.Barrack Obama is President of the United States so I figure all the hype about him must be true.There will be no more wars,terrorists will lay down their arms and profess their love for their former enemies,there will be no hunger,disease or crime.The polllution will be no more,the rivers will flow with chocolate and the sun will shine every day.Barrack Obama is surely the greatest man that has ever walked the face of the earth,and he can surely walk on water too if necessary.

Don't worry,be happy!

[sharkman]

And how do the Obamites respond to being confronted with his spending increases? Denial. What Reagan or whoever did back when has nothing to do with what Obama is doing today, and he is spending the U.S. into the ground. Funny thing is, the stimulus package doesn't really even start until next year which is way too late to help the present difficulties.

Which means it won't start to help until either the economy has started to recover or flat lined in earnest, which isn't a help at all. If gas prices go through the roof again this summer and the stock market tanks again(some are saying it will as it has over corrected), it will hinder any recovery. All Obama will have done is saddle the United States with mega debt as she flounders under more body blows.

Reports say that Britain's credit rating is about to be lowered as well and if the American one does as well because of Obama's inexperience, we could be in for a long one.

[August1991]

shady, guess you weren't a fan of Reagan, Bush Sr., and Bush's massive debt spending either? http://en.wikipedia.org/wiki/National_debt...sidential_terms

Those statistics are nothing beside what Obama is proposing (with the possible execption of FDR during WWII).

Borrowing will pay for half of Obama's proposed spending this fiscal year. Debt in this fiscal year alone will rise by over 10% of GDP. By his own projections, debt under Obama will rise from about 60% of GDP to over 90% during the next four years.

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I have often argued here that government debt just doesn't matter - unless government turns into a Ponzi scheme. (The US government is very far from a Ponzi scheme and can easily borrow the sums Obama wants.)

Rather, the critical question is government spending. What are American people getting for all this spending? With FDR, they got the largest military the world has ever seen and they pushed into oblivion two dictatorial threats to the civilized world. With Reagan, they pushed another mafioso threat into the dustbin of history.

When Obama gets through spending his trillions, what will America have? A medical system like Canada's?

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Obama is not spending money like Reagan or Bush Snr or Bush Jnr. Obama is spending money like Bob Rae when he was Premier of Ontario. I have a suspicion that the end result will be similar. The Democrats will turn on Obama.

Too many Americans (particularly leftists) see in Obama's election a shift in the winds. Rather, Obama's election was an accident. He was elected after a collapse in the real estate market and the stock market. America's military is involved in two foreign wars. In 2008, the US was facing an impending recession.

The election was for the Democrats to lose. Obama mustered at most 53%. He has no popular mandate to change anything and when he tries, he is going to be surprised at the reaction.

Edited May 25, 2009 by August1991

[Shakeyhands]

It's incredible how this man has nearly destroyed the US in only 4 and change months.

[Borg]

It's incredible how this man has nearly destroyed the US in only 4 and change months.

Give him another year and the U.S. will be in ruins and unrest could turn to violence.

Rome burned - Nero fiddled

U.S. of A. may enter backruptcy and Zero borrows even more money.

Voters get the government they deserve. Zeo will be the downfall of the U.S. of A.

Borg

Edited May 25, 2009 by Borg

[Oleg Bach]

It's incredible how this man has nearly destroyed the US in only 4 and change months.

Hey his handlers not only want nationial socialism but international socialism - funny how that works - the richest men on earth want us to be all equal while they live like gods and believe they are our delivering saviours...first second I looked at their front man - Obama - my first thought was - this is a tiny little arrogant man that will do anything and say anything for a ride in the green chopper and a drink on air force one..To Obama - the twit - he imagines this to be his greatest success and the pinicle of society - to be president - but there is no real substance to the office....being ruled by some back room committee of elite gangsters who want to conquer the world by first collapsing the empire - lunitics! Curses on those that harm their own family and country men!

[sharkman]

When Obama gets through spending his trillions, what will America have? A medical system like Canada's?

----

Obama is not spending money like Reagan or Bush Snr or Bush Jnr. Obama is spending money like Bob Rae when he was Premier of Ontario. I have a suspicion that the end result will be similar. The Democrats will turn on Obama.

Too many Americans (particularly leftists) see in Obama's election a shift in the winds. Rather, Obama's election was an accident. He was elected after a collapse in the real estate market and the stock market. America's military is involved in two foreign wars. In 2008, the US was facing an impending recession.

The election was for the Democrats to lose. Obama mustered at most 53%. He has no popular mandate to change anything and when he tries, he is going to be surprised at the reaction.

The problem is he also has the reins of Congress and most likely the Senate(the magic #60). The damage Bob Rae did to Ontario will pale in comparison to what Obama will do if he gets his way. The early signs are such since the center piece of his administration for the first term, the stimulus package, doesn't even begin in earnest until next year. How this helps their economy this year is a mystery to anyone who can think objectively.

And with the MSM riding shotgun, little will come out that is critical of the man, so his many mistakes will continue to be glossed over. Meanwhile, they still pick away at Bush as if it's relevant.

[Oleg Bach]

America's credit rating can not be destroyed - they are the very eccense of credit - it would be like destroying yourself - I can not imagine Obama committing economic suicide - what would the purpose of that be? Is Obama and company part of some half baked revolutionary movement? If they are and they are going to tear down the system - what will the replace it with? If they have no replacement that is superiour - then they are just blind michievious idiots - it may be that simple.

[Moonlight Graham]

I would like to know why Shady, a resident of London, Ontario, gives a hoot about America's credit rating or the drop in value of their dollar. If anything you should be pleased as it will make the Canadian dollar more valuable.

[sharkman]

You might want to also ask why so many Canadians here give a hoot about Obama or his left wing domestic policies. I'm sure you've voiced some opinions on such topics as well. The thing is, you don't have to be an American to care about what happens down there any more than you have to be Jewish to care about what happens in Israel.

[Shady]

Reaganomics is total B.S. He racked up more debt than any non-wartime President since before WWII.

Until the top marginal tax rate hits 70%, Reaganomics is alive and well. And calling Reagan a non-wartime President is very disingenuous. There was this little thing called the cold war, and part of winning it, was military expansion. But even then, attributing the deficits and debt just to Reagan is also very disingenuous. Reagan called for spending cuts, however the completely Democrat majority controlled congress refused. And we all know that the purse strings of the federal government lay with congress.

It long been a squawking point of Conservatives, especially those south of the border, that they and their party and their party leadership are soooo much more fiscally responsible then liberals.

Conservatives are much more fiscally responsible then liberals. More so at the state and local levels. Washington can be different. The last 5 or 6 years were a departure from the previous Republican Congress during the 90's, which balanced budgets.

I would like to know why Shady, a resident of London, Ontario, gives a hoot about America's credit rating or the drop in value of their dollar. If anything you should be pleased as it will make the Canadian dollar more valuable.

That's a narrow and naive way to look at it. Canada is very dependent on a strong American economy. In fact, we owe a good portion of our standard of living on our economic relationship with the U.S. Routing against America is basically routing against yourself. I want the American economy to be strong, so that our Canadian economy can grow and thrive. Canada and the world cannot and will not achieve prosperity without being able to access a strong and vibrant American consumer market.

[Topaz]

Well, if you watched IOUSA, on sunday night, you would have noticed only Clinton, had cleared the debt load and then GW comes along and sends it higher than any other Prez. Of course, he also did that to Texas when he was governor! China owns US and soon the first language will be Chinese! 9 Trillion and climbing every second of every day. Russia has rejected the US $ as legal tender this past week and I sure other countries will follow and then the US $ will be worthless.

[Guest Cltd]

US makes oil reserves!

Hey, hey! I saw a report by US department of energy saying that US crude oil stocks got unexpectedly and largely decreased. I wonder how on earth oil stocks can “unexpectedly” get decreased. Just like no one noticed it? No kidding? Huh, I don’t trust this can be true! I already got used to the thought that smart-ass yankees never ever do anything for nothing. And they also are well known for garbling to obtain some benefit. So I can't swallow that everything’s clear with it. I’d rather believe that it is just other way around - US crude oil stocks got increased. They have exempted oil from usage and pumped it into some reserve tanks.

I bet my shoes that yankee must know something. Perhaps they know that these are the final days of low oil prices. In a short while oil will get terribly expensive once again. So they seize the hour to make crude oil reserves to make use of when oil is too costly. Or they will sell it very dearly. So I say that you should not rely on honesty of americans. Who stores more oil now, will have won!

[Borg]

The U.S. elephant sneezes and Canada gets the flu.

The U.S. is going into debt at an unrecoverable rate and Zero has no idea how to stop the tumble.

The U.S. is out of money for this year - within a few years they will need more than 80% of their GNP to simply service the debt.

Serious trouble made by an absolute idiot

Borg

[sharkman]

Borg, as I mentioned on another thread, add to that the fact that California is actually going bankrupt and people are fleeing the state. Arnie is toying with the idea of ending welfare! Also releasing prisoners that they can't afford to keep!

The welfare thing would cause many illegal aliens to go back to mexico and relieve the government coffers, but it's too late for California.

[gc1765]

Since the State (politicians and bureaucrats) has access to our bank accounts and credit cards, they can spend the money of other people - under the penalty of a jail sentence if you don't pay your taxes. It is this ability to spend other people's money (with impunity) that is the flaw in the modern State and in Leftism.

What's your solution?

[Shady]

Geithner tells China its dollar assets are safe

His answer drew loud laughter from his student audience.

AP

[sharkman]

Problem, what problem? Der leader has the golden touch! Nothing he does can go wrong, am I right lefties? As California crashes and burns and people flee the state, Obama is too busy putting out the fire with Government Motors to do anything about it.

Isn't the summer when the stock market has a normal slow down? It could get even bumpier.