In a sneak attack on the world’s true largest economy, the 27 member nations of the EU, the US credit rating agency S&P hit the EU with a pre-emptive strike on Friday, January 13, 2012 after the markets closed.
That was after the EU refused to implement the US and Israel demanded oil embargo against Iran, which also occurred on January 13, 2012.
There is a currency war in progress and again it is the United States that is the aggressor. It is a financial war launched by the US in yet another desperate attempt to regain their #1 ranking and bragging-rights to ‘leaders of the free world’.
The entire ‘leaders’ thing is an oxymoron when it is applied to Washington, DC literally or liberally. All one has to do is ask an Afghan, Iraqi or Libyan what they think of the US-brand freedom and democracy that merely places a US puppet dictator in charge. It is a mockery from a modern day nation that is making Rome look like nice guys.
Of course, this is the same nation that tried to blast Russia for counterattacking Georgia in August 2008 with lies and rhetoric such as “Russian aggression will not be tolerated. In the 21st Century nations do not attack other nations.” Such political drivel from a nation that had attacked wrongfully and based on lies both Afghanistan and Iraq and proceeded on to Libya, Syria and trying to spin up a lie-based war with Iran.
This is an excerpt from one of the lead articles of this latest incidence of US warmaking:
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Standard and Poor's said Friday it had downgraded France's top AAA rating by one notch to AA+, with a negative outlook, while leaving European powerhouse Germany unchanged at AAA, stable.
S&P also downgraded Italy by two notches to BBB+, negative outlook, with Spain cut two notches to A, negative outlook, as part of a major overhaul of ratings on 16 of the 17 eurozone nations, with Greece excluded.
S&P said its rating actions reflected its view that "the policy initiatives taken by European policymakers in recent weeks may be insufficient to fully address ongoing systemic stresses in the eurozone."
S&P, one of the top three global ratings agencies, said it cut its long-term ratings on Cyprus, Italy, Portugal and Spain by two notches.
Austria, France, Malta, Slovakia and Slovenia were cut
one notch while Belgium, Estonia, Finland, Germany, Ireland, Luxembourg and the Netherlands all had their ratings affirmed.
Overall, seven eurozone countries had their ratings confirmed while nine were downgraded.
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Of course, this is the same Standard & Poor’s that made damned sure much of the world wound up much ‘poorer’ by giving AAA rating to absolute dog-shit subprime mortgages. They did that to the tune of aiding and abetting the theft of about $4 trillion from EU banks, insurance companies, pension funds, private investors, etc. just with the subprime mortgage scam.
Add in on top of that fraudulent sleaze are hundreds of trillions of worthless, contrived and fraudulent derivatives that will be the Financial Armageddon the US devised with its wanton greed and has earned.
Those subprime mortgages were a premeditated act of fraud-based larceny in the trillions of dollars just so idiot Americans would think the US economy was doing just great. Anyone can buy a home, with or without job and income, right? Just go shop after 9-11, add in a home to your shopping basket while you are at it. “The American Dream” financed on the backs of foreign investors that were literally robbed of their hard earned money.
The US is now rated as AA+ just like France, but that is only part of the story. In all candor, if the rating agencies were to do a ‘stress test’ on the United States of America the real rating would be ‘A’ or lower at ‘BBB’ as junk bond status. By applying the same rules and criteria that the US-based (instruments of US financial terrorism) credit rating agencies of S&P, Moody’s, and Fitch, the US would not score an AA+ rating.
If the Dow Jones were rated and marked to market, the NYSE would be sitting at 6,000 or less, not 12,000 and artificially propped up by the Federal Reserve and the role they are playing as a WMD to bash other currencies through propping up Wall Street while at the same time shorting other currencies to make the dollar appear to be stronger than it really is.
The US is a nation with precipitously declining manufacturing output. The job losses are structural and many are too old to go back to university to re-train for where the jobs market is and is headed. The US is a nation that thinks it can outsource most of its manufacturing jobs and be a consumer society. The lunacy of their plan is that at the same time DC implements policies that, oops, kill the consumer.
To be such a wealthy nation, the US just cannot seem to address the downside of their policies and that the ranks of those living under the poverty line, homeless, living on state and federal assistance continues to grow and Washington, DC does nothing but continue to talk trash and nonsense about change and fixing what is wrong.
To say that the DC leadership is blind and myopic is being gracious to them. To say that DC leadership sucks is being kind; their report card is straight “F” in leadership.
The ‘sin’ these EU nations have done that justified a downgrade of their rating is laughable and a cruel joke when the same analysis is applied to the US.
The US has current outstanding debt exceeding real GDP. That would be OK if the US limited its budget and addressed debt reduction. Nah, cannot do that. These scumbags in Congress would have to stop spending like they are all drunken sailors at a Bangkok whore house.
Those wars for nothing, defending nothing have bankrupted the US government. The constant meddling in the affairs of others and pretending ‘leadership’ is the correct word has now become laughable.
The US has unfunded liabilities that far exceed GDP by multiples of 5 to 10 depending on how one defines the total DUE BILL the US government has to face but keeps refusing to face it. You may not think that is important until you need Social Security or Medicare and learn that the government wants to send you an IOU instead of hard cash.
No other government on Earth tries to fund its future on the backs of other nations, and to the tune of 5 to 10 times what the entire national GDP is at this time. By any measure, by any yard stick, by any analysis methodology, that is called bankrupt.
No nation on Earth has dug a hole so deep, except Rome and it collapsed. The US will, too.
Just because the US is the world’s largest single-nation economy is not automatically a carte blanche license to be the nation with the largest debt. It is so because DC is wantonly irresponsible and pushing a global empire quest that failed at least 20 years ago and they just keep burning through money as if they can borrow all they want until the entire world is mired in US debt.
Nor does it give the US the right to devise one fraudulent scheme after another to bilk other nations out of their hard earned capital and savings just so the US Empire can appear to be something worth having.
Of course, it helps to have certain instruments of WMD Financial Terrorism such as S&P, Moody’s and Fitch based in the US so such a close inspection of the disorderly House of DC and expose the sheer sham and scam that is the US economy. If you think there are no CIA employees inside of Wall Street, major banks or these three rating agencies, you just do not understand what the true role of the CIA is….. US hegemony, empire and global domination.
As of 2011, a full 76% of the US economy was ‘services’ instead of production of durable goods. About 50% of the entire economy is ‘financial services’ and much of that is nothing more than Wall Street greed and fraud, and all rated nice and pretty by the three main rating agencies that are all US based and each involved in defrauding by overrating US ‘services’ and trashing others.
The average GDP per capita was stated at $46,844 per US citizen, 7th in the world. As compared to the average wage in Germany such would not qualify a person to buy a house. Germany is a solid AAA where the US is a dubious AA+. That US figure is not indicative of a healthy robust economy when 76% of the US economy is ‘services’. The only real job growth is in low paying ‘service industry’ jobs and the disparities between the rich and poor are worse in the US than just about any place on Earth.
The US is a nation that likes to brag that it is the world’s largest economy, but as compared to the entire 27-nation EU economy the US is now a distant second by over $2 trillion per year in sheer output and exports.
A prudent person would ask why these nations were downgraded when their national debt is no worse than the staggering amount of debt the US has (now larger than annual GDP).
The recent news that Barky wants to expand the national debt by $1.2 trillion is yet more wasted money and deeper in debt by almost 10% more, from 102% of GDP to about 112% of GDP. There are flashing red lights and warning sirens regarding such a move, but DC ignores such signals. Only fools ignore warning signs and DC is full of them.
You see, in the EU the nations can issue just so much debt and unlike the US cannot just print more money to devalue the Euro. The European Central Bank is not a printing machine like the Federal Reserve is.
The ‘purchasing power parity’ of the EU is approximately 20% of the total in the world, yet the EU nations do not print, print and print money like the US does. The main difference between the EU and US economies is the EU has to exercise fiscal responsibility and the US thinks it can just print and borrow its way out of debt. Worse, the US seems to believe they can just keep lying and defrauding others and the US debt will somehow miraculously disappear.
That has never worked for any person, family, company or nation, ever, but in La La Land DC they are not good when it comes to fiscal responsibility or accepting the lack of their self-importance status they bestowed upon their sleazy conduct. They believe in DC that they can defy everything because they mistakenly think they run the show. They do not run this world anymore nor do they call the shots.
Who is shorting and attacking the Euro so the dollar will appear to be strong? It is none other than the US and UK hedge funds, major US money-center banks, investment banks that collectively are a financial terrorism group. In short, those same greedy whores and charlatans that brought the world the derivative scams, credit default swap scams, the subprime mortgage scams, etc., etc., and etc. are busy at work attacking other currencies and economies so their dollar holdings do not evaporate.
Just when the EU was addressing the Greece matters and close to a settlement over the past 2 weeks, the US launches an attack that has the intent of breaking up the EU and causing economic harm. It is not the EU that cannot compete; they far exceed manufacturing output and exports as compared to the US and why their economy is collectively $2 trillion per year bigger than the US now.
It was and is an act of financial terrorism launched by the US to make it appear that the dollar is the currency to stay with now and in the future. The US likes to brag that most of the world uses the US dollar as reserve currency.
That is true and not true. When a nation is willing to lie and create a war, send in the B-52’s, smart bombs and cruise missiles to flatten a nation just because they prefer the Euro over the dollar, that is one reason they stick with the dollar. Ask the Iraqis what happened to them when Saddam Hussein started indexing to the Euro all of the oil and natural gas sales of that nation.
Ask Libyans, when their assassinated-by-NATO / US leader Moammar Gadaffi was creating a gold-backed dinar to denominate the sales of the oil and natural gas of that nation and linking that dinar to the Euro rather than the US dollar.
Ask Hugo Chavez why the US continues to assault and attack him and Venezuela for daring to index oil and the Euro.
Russia and China are now doing business in rubles and Chinese Yuan. China and Japan are now doing business in Yuan and Yen. The trend will continue solely due to US fiscal policy, ludicrous debt levels, and an economic system that can no longer create real jobs for Real Americans.
The US would fail the stress test, if it were applied like they apply it to others.
To add insult to injury (real economic harm in real terms), sleazy Wall Street, billionaire bandits like George Soros, et al, and hedge funds, even the Federal Reserve are shorting the Euro, the Greek bonds, the Hungarian Forint, and anyone else that gets in their way.
Their targeting the Iran Central Bank, which is backfiring in their face in big ways, is yet another ‘financial war’ launched by the US that is nothing less than financial terrorism to force the Iranian people to surrender to US, UK and Israel demands. They will not surrender because they are not in the wrong, the US, et al is.
So, how does the Almighty USA compare to the 9 nations that S&P downgraded?
|
Nation |
Debt to GDP (%) |
Year |
Debt to GDP |
|
Current Rating |
|
Austria |
71.8 |
2011 |
72.15 |
2010 |
AA+, outlook negative |
|
Cyprus |
61.5 |
2011 |
60.8 |
2010 |
BB+/B, outlook negative |
|
France |
82.4 |
2011 |
82.33 |
2010 |
AA+, same as US an much lower debt |
|
Italy |
118.4 |
2011 |
119.0 |
2010 |
BBB+, negative outlook |
|
Malta |
69.0 |
2011 |
67.15 |
2010 |
A/A-2, outlook negative |
|
Portugal |
93.3 |
2011 |
92.92 |
2010 |
BB/B, outlook negative |
|
Slovakia |
41.0 |
2011 |
41.78 |
2010 |
A, outlook stable |
|
Slovenia |
38.8 |
2011 |
37.26 |
2010 |
A+/A-1, negative outlook |
|
Spain |
61.0 |
2011 |
60.12 |
2010 |
A/A-1, negative outlook |
|
United States |
102.0 |
2011 Estimate |
94.36 |
2010 |
AA+, according to US based rating agencies |
Even with all the media buzz about Greece default, they have a national debt of 116% of GDP and Barky is pushing to have the US at about 112% of GDP. You do the math.
Then on January 16 these instruments of US financial terrorism downgraded the EFSF (European Financial Security Facility) from AAA to AA+ is if they are clairvoyant and have a damned clue what the ECB and other EU nations are going to do to fend off this current US-created financial crisis and constant attacks from US companies, wealthy individuals, Wall Street and the US government itself.
What do all of the EU nations have in common that were downgraded?
They are all friendly to Iran and purchase oil from them rather than US and UK sources. And, they refused to implement the US demanded oil embargo on Iran.
Think long and hard regarding the AA+ rating of the US and its ability to just raise the debt to any level they wish. Once you understand that debts are not assets or income, you will better understand why the US is grossly overrated and same junk bond status of Greece, and now Italy as well.
