4 votes

U.S. Debt Downgraded to Junk (Almost)

From The Street...

Ponder for a moment which ratings agency would have the more objective credit rating? A government/SEC cartel like S&P which missed the Lehman collapse, AIG, Enron and Bernie Madoff? Or a private firm that is not beholden to the leviathan like Weiss?



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Greek 2 year ------- 39%

"Ain't worth a Continental!"

Common sentiment in America after the Revolutionary War funding lead to massive printing of non-redeemable mountains of paper cash... unfathomable national debt... hyperinflation.

As mountains of national debt rise up to the sky, it returns to whence it came... Thin air.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

39 per cent

You honestly think people will see that money? ;)

donvino

The DEBT MACHINE is on it's knees...

And with the Federal Reserve buying more than 75% of the debt that is issued (Treasuries, etc.), it's coming to a theater near us. Think about it...we have an insider PRINTING money to finance an out-of-control government spending machine. It's not going to change because the elephant will not leave the room. It's just a matter of time before the global investment community passes on the dollar altogether. Think it can't happen?

It's already underway. When the petrol markets pass on using the dollar dollar as the default currency, it will accelerate the process. t might even get us another couple of wars when they force the US to convert the dollar to buy oil.

There is no easy road out. Welcome to the Weimar Republic!

.

They are all insiders.

The Credit Raters are all writing about faith & confidence...

We have a faith based credit system. Rating is to give respect where there is none. Give some basis for comparison of those that grant credit out of thin air.

If credit rating agencies rated salt, one could measure up to a pillar of salt.

♞ Fall Of Roman Empire! ♞ Mandates Broke Silver. 05/21/2011

    Rome was a "salt based" monetary system. Silver was for officials & military pensioners. The empire lasted until there was no silver to pay military pensioners. Then, it ended abruptly. See the charts & relics.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Mark Twain on Investing...

"Invest in what you feel strongly needs doing! If love or money comes of it, all the better.

If no love nor money, pause... Reflect." - Mark Twain, 2011

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

US National Debt Scores Are Mostly Junk.

      National Debt Rating Services
      - "Helping you believe in National debt...

    while helping themselves to your wealth." - Mark Twain, 2011

There are only a few US National Debt Ratings Services. All of them missed or remained suspiciously quiet about US sovereign debt risk, 1913 - 2010.

Here are four that exist today. Their ratings treat National debt like it is an investment. Folks that know debt made out of thin air for what it is, treat it & would-be raters with disgust.

  • F - Standard & Poor's, officially recognized to rate US Debt
  • F - Fitch, officially recognized to rate US Debt
  • F - Moody's (a warren of vultures....Warren Buffett & friends), officially recognized to rate US Debt
  • C - Weiss Ratings, not officially recognized to rate US National Debt (D changed to C after considering that the US could just go get more debt to pay existing debt)

"Helping to partially offset these low scores, however, the United States ranks 6th for its ability to borrow in the global marketplace, helping to raise its final grade to C." -Weiss Ratings, 2011

    Weiss Rating of existing US National Debt is junk. Borrowing more to pay existing debt only perpetuates the myth.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

reedr3v's picture

You make good points (as usual)

Do you know of any objective rating services with higher standards than Weiss?

The very fact that Weiss rates only Banks,Insurance & such...

Bodes very badly on their ethics & standards. Weiss is less bad to the extent they are less beholden to what they rate. To read their own introduction, they are independent from those they rate. Nonsense.

They gauge the power of persuasion. Confidence. Faith.

If they gauged worth, value, & redemption, why would they be looking in a Hell Hole?

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Grammar School Marms & Librarians. Caveat emptor.

Look for honest moral ones in the Mississippi or Missouri Territories. Go near farms & ranches... Find wisdom with folk doing what needs to be done. Maybe out West. Look for ones that teach cubs of the hardscrabble in the mining towns.

As for a more abstract perspective, rating agencies vary widely.

Value Line is less bad than the gaggle that swoop & dive around them. Value Line is available in most large public libraries. Find a sunny window with a comfortable arm chair. Spend a day. Repeat each quarter.

Valueline http://valueline.com/

    Rates stocks, bonds, & related investments. News Briefs & promotion of their services.

Weiss Ratings (Banks, Insurance, Credit Unions)
http://weissratings.com/

    Welcome to Weiss Ratings ... proud to offer a complete line of products designed to direct consumers and business professionals alike toward safe banking, insurance, and investment options while avoiding unnecessary risks that could lead to financial losses.

    We do not accept compensation for issuing a rating. Nor do
    we allow the preview of a rating or its suppression from publication if it is unfavorable. We are totally independent and unbiased because our loyalty is to you — the customer.

    Strongest & Weakest Lists (financial companies)

      Useful to read what general financial trouble they see coming. They believe in our "Wizard of Oz" Banking system.

Am Best http://www.ambest.com/

    They believe in insurance; they rate accordingly.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Credit raters

I downgrade S&P and their likes to junk. They will give a good rating to whomever pays them lol

Where were they dozens of years ago? They are incompetent and negligent and may God have mercy on them.

donvino

Standard & Poor's & their ilk....

Big Muddy Suck.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Indeed

I applaud your observation and assessment.

donvino

ecorob's picture

very important part of news releases:

“We believe that the AAA/Aaa assigned to U.S. sovereign debt by Standard & Poor’s, Moody’s and Fitch is unfair to investors and savers, who are undercompensated for the risks they are taking. An honest rating is also urgently needed to help support the political compromises and collective sacrifices the U.S. must make in order to restore its finances.”

...you know thats right!

its 'cos I owe ya, my young friend...
Rockin' the FREE world in Tennessee since 1957!
9/11 Truth.

Cannot rate honestly what does not exist.

"An honest rating is also urgently needed to help support the political compromises and collective sacrifices the U.S. must make in order to restore its finances.” - News Release

Catch & release. Perhaps a banking versions would be akin to, "Catch, skin, & release."

Would you teach a cub there is an honest way to create money out of thin air? Would you grant a high letter grade if the cub learnt it?

I mention this nonsense rhetorically.

I support Dr Ron Paul's initiatives toward sound money. I trust you do too.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Weiss

is very creditable and worth listening to IMHO.
Subscribed to their newsletter more than 10 years ago, first heard about sound money there, so they were the first step on the path to Dr. Paul.

Creditable (adjective): worthy of credit

Creditable is a compliment in a credit based "legal tender" system. All national debt credit rating services assign scores on the chance that some fool will buy debt as an investment. This is predicated on lots of other fools willing to pay. This attributes debt-based "legal tender" systems some semblance of respectability among fools. Creating credit out of thin air is something other than respectable... or moral.

Weiss is less blinded by the light. They attribute a great deal more risk with their ratings. They present some balance between risk & reward. Note their current rating of US debt is "D"... Letter shifted to "C" as future debt payments may by received by investors as the US continues to borrow what is not there... Payment streams created out of thin air.

DrHifive,
I do not quibble with what you wrote. Weiss is less bad. Its ratings are useful to choose investments.

I do not feel any sovereign debt is a proper investment. Please follow Dr Ron Paul's lead in creating sound money out of real redeemable value. Gold, silver & the like.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

"In the kingdom

of the blind, the one eyed man is king."

In their subscription news letter, they were recommending gold when it was below $400. Don't recall that they ever suggested that anyone purchase anything but the most short term t-bills, only for money that was needed in near future, never as an "investment".

Mr. Twain: Sovereign debt is so pervasive a part of the current financial regime that it is virtually impossible for most folks to see the truth you state. Even for those few who do, as a practical matter it is very difficult to function without holding sovereign debt in some form.

Thanks. Things should be as simple as possible. No more so.

I do follow what you write. I imagine it. I see it. The quote you cite, means a lot to me.

The virtual fiction in what is euphemistically referred to as, "Monetary System" is indeed pervasive... Ubiquitous.

I imagine & work toward sound money. Ron Paul, 2012.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul