- Downgrading The US Credit Rating
- How China's first attempt at a ratings agency isn't
pulling any punches
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- By Addison Wiggin
- The Daily Reckoning
- 7-14-10
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- "Lenders should do all they can to meet the needs
of creditworthy borrowers," Fed Chairman Ben Bernanke suggested helpfully
at a conference in Washington on Monday. "Credit conditions remain
very difficult," Mr. Bernanke reported.
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- Funny how credit gets tight in a post-binge bust.
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- "Total bank loans have, indeed, grown," GoldMoney's
James Turk comments, "but not because banks made new loans. Instead,
the increase was a result of pure accounting.
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- "On April 1, 2010, the accounting rules for banks
changed. Credit previously extended in the form of derivatives booked off
bank balance sheets now has to be accounted for on a bank's balance sheet.
Thus, in accordance with rule FAS 166/67, banks brought about $300 billion
of assets and liabilities onto their balance sheets in April. This was
credit already extended.
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- "Contrary to earlier conclusions, bankers are still
sitting on their hands. They are not making new loans, when taking into
consideration the bookkeeping change. Bankers are still trying to repair
their own overleveraged balance sheets," a task that is going to take
a lot of time yet.
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- Speaking of credit, or the lack thereof, the US has been
stripped of its AAA credit rating. So have Britain, France and Germany...
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- This morning, the Dagong Global Credit Rating Co., China's
first real attempt at a ratings agency, initiated coverage on the sovereign
debt of 50 different countries. "Dagong's sovereign credit ratings
are based on the new sovereign credit rating standard created by Dagong,"
the Dagong report explains in a perfectly logical, if circular, fashion.
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- Dagong analysts claim to give a greater value to nations
with the best "wealth-creating capacity" and biggest foreign
reserves. They strive to "not be affected by ideology," insisting
that "it is the newly-created social wealth that supports the national
funding capacity and constitutes the primary source of debt repayment."
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- When we were in China last month, we had a chance to
fire Chinese-made M-16s and AK-47s. The Chinese are reverse-engineering
the weapons and mass-producing them. Heck, if the US and Russia are making
money in the global arms trade, why shouldn't China get a piece of the
action?
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- The same logic apparently applies to the global credit
markets, too.
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- Here's how global debt looks when expressed in terms
of Dagong's outlook for each of the top 20 countries' currency.
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- Perhaps we should consider these new ratings to be another
subtle shot across the bow from the Far East... The Chinese are not nearly
as ignorant as most Westerners would want them to be.
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- These new Chinese ratings might make sense, but they
are not sanctioned by the SEC.
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- "The single most important factor in the Commission
staff's assessment of Nationally Recognized Statistical Rating Organizations
(NRSRO) status," reads the SEC's website, "is whether the rating
agency is 'nationally recognized' in the United States as an issuer of
credible and reliable ratings by the predominant users of securities ratings."
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- Hmmmn...
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- "The [SEC] staff also reviews the operational capability
and reliability of each rating organization. Included within this assessment
are... the rating organization's independence from the companies it rates...the
rating organization's rating procedures (to determine whether it has systematic
procedures designed to produce credible and accurate ratings)..."
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- Ha! Take that, you Chinese credit raters. The SEC is
the decider!
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- Only 10 organizations in the world are labeled a Nationally
Recognized Statistical Rating Organization (NRSRO)! Any worldly company
that wants to both utilize a credit ratings agency and comply with US financial
regulations has to use one of these NRSROs...thereby making any alternative
ratings agencies mostly irrelevant, regardless of the quality of their
ratings.
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- So there.
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- Of the 10 sanctioned NRSROs, seven are US companies.
Naturally. Two are Japanese, and one is Canadian. But we're pretty sure
these last three don't count. Clearly, no other country in the world is
capable of accurately assessing credit conditions.
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- Sorry, Dagong Global...wrong country, wrong era.
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- "As future bond issuers belly up to the bar with
their rating agency seals of approval," PIMCO's Bill Gross wrote earlier
this year, "it is incumbent on the buying public to treat those IDs
with a healthy skepticism. Firms such as PIMCO with large credit staffs
of their own can bypass, anticipate and front-run all three, benefiting
from their timidity and lack of common sense. Take these recent examples,
for instance: S&P just this [April] downgraded Spain 'one notch' to
AA from AA+, cautioning that they could face another downgrade if they
weren't careful. Oooh - so tough! And believe it or not, [up until May
of 2010] Moody's and Fitch still have them as AAAs. Here's a country with
20% unemployment, a recent current account deficit of 10%, that has defaulted
13 times in the past two centuries, whose bonds are already trading at
Baa levels and whose fate is increasingly dependent on the kindness of
the EU and IMF to bail them out. Some AAA!"
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- That's the biggest bond manager in the world publicly
mocking the ratings establishment. How much longer can the status quo last?
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- ================================================
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- They have layed out your future as powerless subsistence-level
debt slaves -- are you going to accept it? Is that what you want every
child you know to grow up to live in?
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- Obama's Pay-National-Debt-to-Rothschilds-at-Any-Cost
Commission lays it all out for us.
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- How $47,000 owed by every American to the Rothschilds
and Chinese will be paid.
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- The chairmen of President Obama's national debt commission
painted a gloomy picture Sunday as the United States struggles to end spending
for the public in order to maintain the required stream of debt payment
to the Rothschilds who were so good to make the credit available to us
in the first place.
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- Republican Alan Simpson and Democrat Erskine Bowles told
a meeting of the National Governors Association that everything needs to
be considered - including curtailing popular tax breaks, such as the home-mortgage
deduction, and instituting a financial trigger mechanism for gutting Medicare
coverage to pay America's international creditors.
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- The nation's total federal debt to the Rothschild interests
next year is expected to exceed $14 trillion - about $47,000 for every
U.S. resident. Not even jobs created by tearing down our coal power pants
and tearing down our dams so the salmon can spawn and replacing the lost
power with windmills and solar cells is expected to earn that much money.
"So its either we take the knife to ourselves or we disappoint the
Rothschilds. History shows -- at least for the ruling elites that the
Rothschilds have trusted to serve their interests -- that taking the knife
to our sub-ruling classes is by far the better choice.
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- "This debt to the Rothschilds is like a cancer,"
Bowles said in a sober presentation lightened by humorous asides between
him and Simpson. "It is truly going to destroy the country from within
-- no matter what. Our goal is just to keep up orderly payments to the
Rothschilds until the last drop of blood is wrung from the last stone dead
debtor.."
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- Simpson said the entirety of the nation's current discretionary
spending is consumed by the Medicare, Medicaid and Social Security programs.
How in the hell can we dare have those when we owe Rothschild so much
money?
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- Simpson, a former Republican senator from Wyoming, and
Bowles, a former White House chief of staff under President Clinton, head
an 18-member commission to diffuse responsibility for cutting open the
American people to sell their organs to meet debt payments to the Rothschilds
who got the trillion dollar bailout that was money borrowed from the Rothschilds
at interest which we now must pay back. After all Obama promised the G-20
it would get down -- and the G-20 are all debt-slave nations whose leaders
are Rothschild debt-collectors.
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- The panel is charged with coming up with a plan by Dec.
1 to reduce the government's annual deficits to 3 percent of the national
economy by 2015. Right now the deficit is most of the GDP. The interest
payments that must be made to the Rothschilds can't be cut -- it becomes
America on the chopping block. Of course if Ron Paul and Celente can get
us on a gold standard and if the American people in a panic buy gold from
the Rothschilds -- who monopolize it -- everything will get better faster.
Nothing like a lot of shiny yellow metal disks and lump bars buried in
the back yard to ensure there will be enough food for everyone. So if
you have bought gold from one of Glenn Becks advertizers you can stop reading
-- none of this need concern you.
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- "The rest of the federal government, including fighting
two wars, homeland security, education, art, culture, you name it, veterans,
the whole rest of the discretionary budget, is being financed by China
and other countries," Simpson said. China alone holds $920 billion
in IOUs from the U.S. government. And China got that money because the
Rothschilds set them up to get it. The Rothschilds have giant stake in
all of the Chinese industrial firms that produced the goods which Americans
bought on Rothschild mediated credit.
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- If the United States makes no changes, Bowles said, the
nation will be spending $2 trillion by 2020 just for interest on the national
debt to the Rothschilds. Even debt slavery has its limits.
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- "Just think about that: All that money, going somewhere
else, to create jobs and opportunity somewhere else," he said.
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- BOSTON -- The co-chairmen of President Obama's debt-owed-to-the-Rothschilds
commission and deficit in meeting interest payment obligations in our debt
to the Rothschilds commission offered an ominous assessment of the nation's
fiscal future here Sunday, calling current budgetary trends a cancer "that
will destroy the country from within" unless checked by tough action
in Washington that will enable our interest payments on our debt to the
Rothschilds to continue without missing a payment.
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- The two leaders -- former Republican senator Alan Simpson
of Wyoming and Erskine Bowles, White House chief of staff under President
Bill Clinton -- sought to build support for the work of the commission,
whose recommendations on how and where to cut in order to not incur the
wrath of Rothschild is due later this year are likely to spark a fierce
debate in Congress.
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- "There are many who hope we fail," Simpson
said at the closing session of the National Governors Association annual
meeting. He called the 18-member commission "good people with deep,
deep differences" who know the odds of success in balancing national
survival with our obligations to the Rothschilds "are rather harrowing."
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- (Graphic: President Obama's proposed 2011 budget explained)
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- Bowles said that unlike the current economic crisis,
which was largely unforeseen before it hit in fall 2008, the coming fiscal
calamity is staring the country in the face. "This one is as clear
as a bell," he said. "This debt is like a cancer." The compound
interest owed to the Rothschild banking alliance grows like cancer spreads.
The cuts we must make to pay the Rothschilds are like the organs that
must be removed to keep the cancer from killing the patient. Either we
cut off our arms and legs or we miss a payment to the Rothschilds, therefore
prepare to feel the scalpel.
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- The commission leaders said that, at present, federal
revenue is fully consumed by three programs: Social Security, Medicare
and Medicaid. "The rest of the federal government, including fighting
two wars, homeland security, education, art, culture, you name it, veterans
-- the whole rest of the discretionary budget is being financed by China
and other countries," Of course the Rothschild/Rockefeller planned
and forced the deindustrialization of the US and the export of our industrial
capital to China, bankrolled by Rothschild loans, laundered drug money
etc. and of course Rothschild/Rockefeller money bought the prostituting
politicians that passed NAFTA and WTO treaties that made it impossible
for us to discipline ourselves with the requirement of balanced trade.
Of course the Rothschilds and their partner China were willing to extend
loans so the US could provide demand for China industrialization and cheap
goods that destroyed US domestic
- producers. Why not? They know that when we default
they get the collateral -- they get our ever remaining resource. Simpson
said.
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- "We can't grow our way out of this," Bowles
said. The debt is too big, the compound interest is too impossibly high.
"We could have decades of double-digit growth and not grow our way
out of this enormous debt problem. We can't tax our way out. . . . We The
reality is we owe the Rothschilds more than we can pay and the debt to
the Rothschilds is growing at compound interest faster than we could ever
hope to grow ourselves, especially since our capital base is completely
gone and our infrastructure is worn our and unreliable and we have no demand
and a workforce dumbed-down and discouraged
- so we've got to do exactly what you all do every day
as governors. We've got to cut spending or increase revenues or do some
combination of that to make sure we don't miss a payment to the Rothschilds."
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- Bowles pointed to steps taken recently by the new coalition
government in Britain, which also faces an acute budgetary problem in meeting
their debt payment obligations to the Rothschilds -- as a guide to what
the commission might use in its recommendations. That would mean about
three-quarters of the deficit reduction would be accomplished through spending
cuts, and the remainder with additional revenue. Cut and tax the many
so that the super-rich are no angered by a missed payment. Otherwise,
Bowles added the Rothschilds will stop lending to us and we will go bankrupt
and by international law when the Rothschilds don't get paid there has
to be blood in the streets until all of those who would short change the
Rothschilds get what they deserve."
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- Most Republicans in Congress are opposed to any tax increases
to pay the Rothschilds, which has made the work of the commission far more
difficult. Bowles and Simpson appealed for support to the governors, who
have been forced by their states' constitutions to balance their budgets
with deep spending cuts and, in many cases, tax increases. "After
all, Bowles said, we borrowed the money for our stimulus payment to the
financial sector -- now we have to pay for it.
- Stimulus money does not come out of thin air. We hired
the money, now we have obligations to the international lenders that must
be met."
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- Bowles and Simpson said the commission would have had
a stronger hand politically had it been created by Congress, rather than
through an executive order. But the new recess appointment of the man who
will cut US medical services by half will help,Simpson pointed out.
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- "As far as I can discern, it was to stick it to
the president," Simpson said. "That's where we are in Washington."
He later added that all seven "have now come to us to say, 'We're
ready to help.' "
-
- The presentation by Simpson and Bowles, which included
repeated statements of determination to produce a bipartisan set of recommendations
to meet our obligations to the Rothschilds drew praise from the governors.
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- "I don't know that I've ever heard a gloomier picture
painted that created more hope for me," said Arkansas Gov. Mike Beebe(D).
Job security for hit-men.
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- Washington Gov. Chris Gregoire (D) said that many governors
fear that the commission's recommendations will result in more demands
on the states. It's a dirty job, but those Rothschilds must get their
money. I won't let them down.
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- Bowles, who noted that the 1997 balanced-budget agreement
to stay within the budget that Rothschild willingness to lend and accumulating
debt that was reached between the Clinton White House and the Republican-controlled
Congress included many provisions that put more burdens on the states,
said that wasn't likely.
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- "I don't think you're going to see a lot of devolution
coming from us because the states are all broke," he said. We simply
owe and can't pay. It is now just a matter of slicing up the country until
their is nothing left. But the rules must be followed: "Let the children
starve and die of exposure on the streets before by withhold a penny of
payment to the Rothschilds.
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- Simpson also warned that the November elections could
add another wild card to the work of the commission. "I have no idea
what's going to happen on Election Day but it's going to be disruptive
when Karl Rove with all that money from corporations elects Newt Gingrich
as the next President. Newt is a self-proclaimed life-long Rockefeller
man, so I am sure if payments to the Rothschilds/Rockefellers can be kept
up somehow Newt will find the way. he said. "It's going to be a big
wake-up call around the whole United States. I have no idea where it's
going, but thank heaven we have a month then to work through the wreckage."
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- =============================================
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- Or not!
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- Populists want to cut through all the above -- repudiate
the debt, institute domestic debt-free treasury money, and nationalize
credit providing each household with social credit dividends -- purchasing
power that families can spend without having to pay back. The social credit
does not replace going to work to earn a living -- but it removes all
debt at once -- and it replaces the Rothschild/Rockefeller international
usury system that injects new money by making giant debt loans to their
pet monopoly corporations with Rothschild minion CEOs etc.
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- As one Social Creditor put it in a letter this morning:
-
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- We, especially of the "civilized" world, HAVE
been slaughtering each other on a mass scale for well over a century--mainly
because of intensifying international competition to force more and more
of our growing super-abundance on other nations. If we don't learn how
to distribute this wealth to the people at large in the first instance
without first engaging in increasingly wasteful and ultimately destructive
activity we will no doubt keep up the momentum of the killing machine.
One surprising little bright ray of light that recently peeped through
the darkness: I was listening to a financial commentator, who has just
released a book, on radio the other day and while musing about the intractability
of the "recessionary forces" partly because of weakening foreign
trade and partial if temporary military pull-outs he suddenly blurted out,
- "We can't all export more than we import!"
Somehow he seemed to have been struck by a sudden flash of insight. Not
much, but it was a small, if profound, crack in conventional thinking.
Can we hope that this sort of thing may become contagious?
-
- Sincerely
- Wally
- Remember -- the trade deficit and the entire system
of debt slavery and our condition right now were all the result of a policy
dictated by international bankers and executed by their servants who we
have been tricked into believing are public servants working for the general
good.
-
- America needs repudiation off all debt to Rothschild/Rockefeller
crime syndicate, debt-free treasury money, Social Credit, Transactions
Taxes on Big Finance after it is Cut Down to Size
- Populist Nationalist Social Credit Brotherhood of American
Citizen Peacemakers of All Races and Creeds -- This is our Common Ground!!!
-
- Thoughts of Douglas on Social Credit, Economic Depression,
the Bankers' Conspiracy
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- http://www.alor.org/Library/ThoughtsofDouglas.htm
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- Clifford Hugh Douglas - Social Credit(1924)
- http://douglassocialcredit.com/index.php
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- ===============================
-
- Related Items:
-
- From: Dan Breeden
- To: Richard Eastman
- Sent: Wednesday, July 14, 2010 5:36 PM
- Subject: disgusting IMF
-
- http://www.huffingtonpost.com/dean-baker/the-attack-of-the-real-bl_b_643506.html
-
- Richard Eastman
- richardeastmanyakima@q.com
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