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.

BZ