Moody’s Tries to Scare Us

From Market Watch:

Moody’s Investors Service said late Wednesday it placed the U.S. government’s triple-A bond rating on review for possible downgrade due to rising risk of default. “The review of the U.S. government’s bond rating is prompted by the possibility that the debt limit will not be raised in time to prevent a missed payment of interest or principal on outstanding bonds and notes. As such, there is a small but rising risk of a short-lived default,” Moody’s said…

This is the global Ruling Class circling the wagons – there is absolutely zero danger that a bondholder won’t get paid.  But they are fretful of the precedent – that is, they are worried that we, the people of the United States, will discover that the world won’t end if Uncle Sam stops spending money.  That would be pretty much game over for them…once we see it happen, we’ll probably start making all sorts of demands for spending cuts and that could lead just about anywhere – President Palin, balanced budgets, a revived American economy, bitter-clingers ruling the roost…it is all just too terrible to contemplate.  So, better try and frighten the yokels…Obama did his bit by claiming old people won’t get their SS, now Moody’s is doing it’s bit by claiming that disaster impends.

Don’t buy the scare tactics and the hype – there is no financial crisis for the United States government.  Not yet.  That will come some where in 2015 if we don’t cut spending, not in 2011 if we fail to go further in to debt.  To be sure, there is a danger of a complete economic melt down – but that will be triggered by China and/or Europe, not by us; and there is nothing we can do to stop any of that, though we could make matters much worse by having more debt than we should when the crash comes.  Republicans, conservatives, libertarians – remain calm:  stand firm on principal and all will be well.

About these ads

14 thoughts on “Moody’s Tries to Scare Us

  1. bardolf

    “Don’t buy the scare tactics and the hype .” – Mark

    Why would I BUY scare tactics when I can get a free recommended daily allowance on B4V from true connoisseurs of doom and gloom?

    WHAT are the objective criteria by which one astrologer/economist is to be believed and another astrologer dissed as a ‘Ruling Elite’?

    1. Mark Noonan

      Baldorf,

      The difference is in the fact that I’m not trying to get you to buy anything – the doomsters about the debt ceiling are trying to get you to buy the notion that you, as part of the American people, must go further in to debt. Me? All I want is you to be free from debt, free from government and corporate control and able to just live your life. You really need to start thinking about what I’m saying, rather than just knee-jerk assuming things.

      1. neocon1

        Mark

        for baldork and the rest of our libs you should have stopped here……
        You really need to start thinking
        they wont so save your breath. :)

        leftist ideology and reason are mutually exclusive.

      2. casper

        Mark,
        If Moody’s lowers our bond rating it costs more to borrow money which raises the debt.

      3. Cluster

        Since Pelosi took office in January 2007, the debt has increased by 60%. I hardly think Moody’s could do much worse.

      4. MontyBurns

        “I’m not trying to get you to buy anything”

        Yes you are. You’re trying to get people to buy your notion that this is all a big scam on Moody’s part instead of, you know, a pretty simple warning of the consequences of default.

  2. thomasg0102

    Mark,

    at what point do you stop and just claim that everyone who is against your viewpoint is either an “elite” or trying to sell us something?

    Seriously, you’re not only not qualified to talk about economics, but now you discount professional organizations who are unbiased and non partisan.

    You’ve reached a new low.

    1. neocon1

      tommiegasbag

      Seriously, you’re not only not qualified to talk about economics,

      for a minute I thought you were talking about al-obination and his regime.

  3. bardolf

    Obama and Congress Agree To Raise Debt Ceiling to $120 Trillion http://unconfirmedsources.com/?itemid=6143

    Mark, I didn’t ask what YOU are selling. I asked how you decide which economists/astrologers/ratings_agencies are believable. You posted a prediction by Quest Offshore Inc. which clearly has something to SELL. You regularly quote economists who clearly have something to sell.

    The most YOU might be selling is the GOP brand. That should be fine to all the posters on your BLOG. My question is what criteria do you use to pick Mish over Warren Buffett?

    You regularly quote investment advisors who say gloomy things like “To nutshell it – the bailout of Greece has failed completely (with Greek bond prices rising above 30%) and the contagion is spreading to Italy.” Are these people hawking gold and silver by any chance? Is there money to be made by speculating that the Italian banks are in jeopardy?

    1. Rightlane

      I think, though I can’t speak for others, that most everyone quotes from sources which tend to validate there ideas and support their conclusions. Even those from the left.

  4. Cluster

    Let’s take a look at this debt from another perspective. – in 1993 the debt ceiling was raised to 4.9 trillion. Meaning, that since the founding of our great nation and up until 1993, we had over spent revenue by 4.9 trillion, a period of approx. 215 years. Now in just the last 18 years, we have more have almost tripled that and now have over 14 trillion in debt, and Obama has added over 4 trillion of that. This is INSANE and MUST stop.

  5. tiredoflibbs

    obAMATEUR raised the baseline budget by almost 25% in his first two years in office. There is no way that you can convince anyone that there is no room to cut spending. None.

Comments are closed.