United States

Unpublished

Reactions to the S&P Downgrade of USA Sovereign Debt

china flagChina is having a field day blasting the United States over S&P's downgrade:

The White House on Saturday challenged the ruling by Standard & Poor's to downgrade U.S. long- term credit rating form top rank of AAA to AA+, citing the agency' s decision relied on faulty math and in haste.

Disappointingly, instead of reflecting on themselves and sitting down to fix problems in a cooperated way, the Democrats and Republicans in Washington are questioning the creditability of the downgrade ruling and blaming each other for the ever-first shame of slipping out top credit rating club.

The alarm has rung. It is time for the naughty boys in Washington to stop chicken games before they cause more damages. It is time for the policy-makers in Washington to settle down, to show some sense of responsibility and fix their fiscal problems.

Credit Rating Agency Scolds the United States on Sovereign Debt

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All Hail the credit rating agencies. Standards & Poor's just gave the good ole' USA a negative credit rating outlook, with a scolding on what we should do as a nation:

Standard & Poor’s put the U.S. government on notice that it risks losing its AAA credit rating unless policy makers agree on a plan by 2013 to reduce budget deficits and the national debt.

“If an agreement is not reached and meaningful implementation does not begin by then, this would in our view render the U.S. fiscal profile meaningfully weaker than that of peer ‘AAA’ sovereigns,” New York-based S&P said today in a report that maintained its top rating on U.S. long-term debt while lowering the outlook to “negative” for the first time.

S&P is giving the U.S. a 33% chance of losing it's AAA credit rating.

This is how the game is played to force a nation into austerity. The agenda is to destroy what is left of the working people and middle classes by dismantling what is left of social safety nets, under the claim of too much debt. In other words, it seems S&P is in on the game to make sure Americans have no Medicare, Medicaid and Social Security.

Indeed, it seems Republicans are jumping on this like flies on .....well, you know. All to destroy what is left of America's social safety nets.

Shock of all shocks, Obama's chief economics guy, Austan Goolsbee, is calling cash on S&P and implying this is political:

Moody's Warns the U.S. of a sovereign credit rating downgrade

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The Financial Times is reporting Moody's will warn the United States of a credit ratings downgrade due to it's debt.

Moody’s Investor Service, the credit rating agency, will fire a warning shot at the US on Monday, saying that unless the country gets public finances into better shape than the Obama administration projects there would be “downward pressure” on its triple A credit rating.

Examining the administration’s outlook for the federal budget deficit, the agency said: “If such a trajectory were to materialise, there would at some point be downward pressure on the triple A rating of the federal government.”

It projects that the federal borrowing is so high that the interest payments on government debt will grow to more than 15 per cent of government revenues, about the same by the end of the decade as the previous 1980s peak.

Lovely.

United States Set to Lose Global Dominance

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There is a new report by the National Intelligence Council which concludes the United States global dominance in economic strength, political and even military power is set to wane.

Which countries will take it's place? Why the very countries we offshore outsourced our jobs to!

The National Intelligence Council (NIC) predicts China, India and Russia will increasingly challenge US influence.

It also says the dollar may no longer be the world's major currency, and food and water shortages will fuel conflict.

If the United States Dollar is no longer the reserve currency, this causes all sorts of problems, as described in the referenced post for the United States, especially running massive deficits.

Germany to U.S. - Your Financial SuperPower Status is History

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Tell us something we don't know Germany. US ‘will lose financial superpower status’:

The US will lose its status as the superpower of the world financial system. This world will become multi­polar” with the emergence of stronger, better capitalised centres in Asia and Europe, Mr Steinbrück told the German parliament. “The world will never be the same again.

Universities moving overseas

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US Universities open campuses overseas

In a kind of educational gold rush, American universities are competing to set up outposts in countries with limited higher education opportunities. American universities — not to mention Australian and British ones, which also offer instruction in English, the lingua franca of academia — are starting, or expanding, hundreds of programs and partnerships in booming markets like China, India and Singapore

Will the programs reflect American values and culture, or the host country’s? Will American taxpayers end up footing part of the bill for overseas students? What happens if relations between the United States and the host country deteriorate? And will foreign branches that spread American know-how hurt American competitiveness?

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