Congrats to all of our representatives

[bluffmanxx]

Standard & Poor's downgrades U.S. debt

it's the spending stupid!!

increasing the debt ceiling just allows more spending. nice move

[Moab]

Ironic isn't it dammed if you dammed if you don't ... had they not raised the ceiling the downgrade would happen ..

Just maybe we should try raising taxes and see what happens ... Just for one year that's all.

[billynomates]

Iro

nic isn't it dammed if you dammed if you don't ... had they not raised the ceiling the downgrade would happen ..

Just maybe we should try raising taxes and see what happens ... Just for one year that's all.

Better idea for just one year everyone turn their books over to the Government and let them decide what is a fair amount they should pay.

[Nynus]

Yup, the shit just got real.

And it's about to get worse.

SHANGHAI (Reuters) - China roundly condemned the United States for its "debt addiction" and "short sighted" political wrangling and said the world needed a new stable global reserve currency.

In a harshly-worded commentary by the official Xinhua news agency on Saturday, China gave its first official comments on the United States losing its gilded AAA long-term credit rating from Standard & Poor's.

"China, the largest creditor of the world's sole superpower, has every right now to demand the United States address its structural debt problems and ensure the safety of China's dollar assets," Xinhua said. China also urged the United States to apply "common sense" to "cure its addiction to debts" by cutting military and social welfare expenditure.
"The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone," Xinhua wrote.

China also said further credit downgrades would very likely undermine the world economic recovery and trigger fresh rounds of financial turmoil.

"International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country," Xinhua said.

In other words, China is saying, "Listen you Fucktards. We own your ass. If you don't stop all this spending shit, we'll shut you down and take over as the world standard."

[Nynus]

Oh yeah, we might not be able to borrow anymore despite the debt ceiling increase.

If the Treasury tries to sell more bonds in the wake of the downgrades, the interest rates are going to shoot up. So they either use the money they have, and avoid more borrowing, or they offer new bonds, and interest rates go up. This in turn increases our debt and may trigger another downgrade, or a run on the dollar, the rise of oil, the further rise of interest rates, and then hyper inflation. Of course the Treasury could also initiate QE3 and start printing more money to buy back outstanding debt. But this could also trigger another downgrade, collapse of the dollar, rising oil, etc. etc.

Option 1 - cut spending, eliminate borrowing and stop all bond offerings, and MAYBE the US can pull it's dick out of the meat grinder.

Option 2 - continue spending, borrow more by trying to sell a new offering of bonds, and risk the collapse of the US monetary system.

As for me? I'm going to invest in a few more guns, get some extra ammo, and load up on some water and dry goods. Yeah, it might get that bad.

[billynomates]

I'll have a 66 and an extra portion of flied lice.

[billybob]

Its sad, sad, but if this man is re-elected, it will get much worse. I have friends that voted for him, I do believe they are finally, ready to give up on him. Four more years would be the worse thing that could happen. I thought he would be re-elected, and he could be, but I am beginning to think he is one term President.

[ItWasSooted]

In other words, China is saying, "Listen you Fucktards. We own your ass. If you don't stop all this spending shit, we'll shut you down and take over as the world standard."

You know what's even worse? It's the truth ...

[Moab]

I can solve the problem ... cut taxes and the rich will invest and we'll get jobs. Ooh did you hear that Mexican truck drivers will now be able to cross the border and drive truck in America ... Hummm more jobs from the rich who use their tax cuts to invest in Mexico.

[curtinsea]

If interest rates on the debt go up, China will continue to loan us all we want. More profit for them. They are more concerned with the value of the dollar, if we degrade it's value, their investment loses value, and then they will not be interested in investing in dollars. And given the Obama budget plan . . .