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Bloviating Zeppelin: US Economic Crash: It's Coming

Bloviating Zeppelin

(in-ep-toc'-ra-cy) - a system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.

Wednesday, March 24, 2010

US Economic Crash: It's Coming

Moody's economic analysts are saying the US is in danger of losing its AAA credit rating:

While Treasuries backed by the full faith and credit of the government typically yield less than corporate debt, the relationship has flipped as Moody’s Investors Service predicts the U.S. will spend more on debt service as a percentage of revenue this year than any other top-rated country except the U.K. America will use about 7 percent of taxes for debt payments in 2010 and almost 11 percent in 2013, moving “substantially” closer to losing its AAA rating, Moody’s said last week.

The United States cannot afford ObakaKare. It cannot afford to provide services to illegal invaders granted amnesty. Businesses cannot afford CapNTax. The US cannot afford any more bailouts or stimulus packages or takeovers of student loans or any other segment or strata takeover by the federal government. States are already prepared to crash, hence their suits. States cannot print their own cash as can the fed.

Today, the five-year note auction was poor at best.

Already, it's beginning in Europe:

In Portugal, Fitch Ratings lowered that country's credit grade to AA just this Wednesday.

The rating was lowered one step to AA- with a “negative” outlook, Fitch said in a statement today, adding that further economic or fiscal underperformance this year or in 2011 may lead to another downgrade. The euro extended its decline, dropping against all but one of the 16 most-traded currencies. Portuguese stocks and bonds fell.

Our stock market fell after Portugal's ratings came out Wednesday. And Greece is not far from a fall:

I think it’s in an impossible situation,” said Donovan, who is based in London, in an interview with Bloomberg Radio today. “Europe has failed to clear its first serious hurdle. If Europe can’t solve a small problem like this (Greece), how on earth is it going to solve the larger problem, which is the euro doesn’t work. It’s a bad idea.”

79% of those polled recently by FoxNews believe the US economy can collapse. Respondents believing this included Democrats (72 percent), Republicans (84 percent) and independents (80 percent).

Listen to this man:

Here Is One Fundamental American Problem:

Half the country pays 97% of the taxes, and the other half pays 3%. So 50% of our entire country believes that something "free" is actually free because, after all, they see no consequence to that thought.



Blogger Maggie Thornton said...

I was fairly impressed with this guy in the video and his willingness to talk straight-up about one world gov'mt, one currency, etc. Then when he said we have no natural resources.... He seems to think that all world economies should not have such large inequities. That means the U.S. declining to the point of average.

I say screw him, strong letter to follow:-)

Wed Mar 24, 04:01:00 PM PDT  
Blogger BrettGrieve said...

Half the country pays 97% of the taxes, and the other half pays 3%. So 50% of our entire country believes that something "free" is actually free because, after all, they see no consequence to that thought.

Your last sentence was right on. When you are receiving goods, services, housing, WHATEVER at 10% of what it actually costs to delver or sustain said product, why on earth would you treat it like you actually worked for it? Is it any wonder that all the government subsidized housing is located in the "shadiest" parts of town?

Wed Mar 24, 04:58:00 PM PDT  
Blogger Well Seasoned Fool said...

Afraid you are correct.

Wed Mar 24, 05:16:00 PM PDT  
Blogger A Jacksonian said...

And Greece is about to slide into bankruptcy. Seems the Germsns didn't think that working longer and paying more to Greece to let folks retire at 55 was such a good deal.

Not that Germany is all that solvent.

No one is buying US bonds.

China has sold of a lot, making Japan the new #1 holder of our debt, but China still has a buttload it can't unload. Ditto Russia and it has got unrest growing across 11 time zones.

And there we are trying to find someone to finance all the lovely bailouts, TARP, 'stimulus' and now wanting to peddle O-care.

Nothing is too big to fail.

And no one is going to bail out the US.

Wed Mar 24, 06:11:00 PM PDT  
Blogger David Wyatt said...

Wow. A man who is now in Heaven named Larry Burkette, wrote a book back in the '90's titled "The Coming Economic Earthquake." What would he say today if he were still with us? His death, along with other Godly men & women makes me think of Isa.57:1, which says, "The righteous perisheth, and no man layeth it to heart: and merciful men are taken away, none considering that the righteous is taken away from the evil to come."

Wed Mar 24, 07:44:00 PM PDT  
Blogger Old NFO said...

Yep, we're on the downhill slide and if we lose the AAA, then all the financial projections become REALLY bad...

Thu Mar 25, 05:48:00 AM PDT  
Blogger Bloviating Zeppelin said...

I submit it's not that terribly far away. . .


Thu Mar 25, 06:32:00 AM PDT  
OpenID MikaelaTaber said...

Half the country pays 97% of the taxes, and the other half pays 3%. So 50% of our entire country believes that something "free" is actually free because, after all, they see no consequence to that thought.

What this says is that our system of regulation has created a space in which 3% of people hold 97% of the wealth. How is that in itself not cause for concern? The tax system that reflects this has the negative effect of supporting this system of obvious inequity by poorly attempting to correct it. By allowing corporations the status of "individuals", we hand them the ability to wield monopoly power and squelch real free trade. When this is exercised, we see a disproportionate amount of wealth and power consolidate at the top of our economic system, and choices are made that do not benefit the majority of people doing the work to put out a product. Wealth does not "trickle down", and people go without basic necessities. In an attempt to correct this, the government exacts high taxes and redistributes the funds to people who are in the most need, not necessarily those who are most deserving. If we had adequate regulation on private corporations, this would be unnecessary, and the free market would be able to provide better, more fairly compensated jobs and higher quality products. When we can manage an economic system that does compensate even those workers at the bottom fairly for their labor, the welfare system will become obsolete. It is the very support of monopoly corporations that has led to the welfare state. To kill welfare, you must first kill the corporation.

Fri Jun 18, 12:57:00 PM PDT  

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