Posted on 11/07/2011 8:45:21 AM PST by SeekAndFind
The CFO of Koch Industries, Steve Feilmeier, took to his company's newsletter to explain the debt downgrade to Koch employees, and offer some subtle digs at Obama.
After explaining what it means to have the U.S. credit rating lowered, he recounts the sad tale of debt.
"About $4.5 trillion of the $15 trillion in federal debt is held by foreign investors such as China and Japan.
If the U.S. dollar is worth less in the future, the willingness of those investors to continue lending will decline. The same will be true for anyone – including employees or retirees – who are paid in U.S. dollars."
We've been hearing for years from inflation hawks that the dollar is ready to collapse. But the dollar continues to be a refuge for investors.But Koch industries along with the ratings agencies are losing faith in the dollar or the ability of America to sustain its living standards.
S&P downgraded the U.S. for one primary reason: the potential inability of the U.S. to repay its debts with dollars that will be worth the same in the future as they are today.
If S&P is right, and if the U.S. government does not start living within its means, our standard of living will most certainly decline.
So what is the Koch industries preferred solution to the problem? You've guessed it. Put on the green eyeshade and cut, cut, cut public spending.
"The best first step is to reduce borrowing by cutting actual spending – not just the rate of spending increases. All of us need to understand that our fiscal sovereignty is being compromised and that tough choices are required to reverse this trend. ..."
(Excerpt) Read more at businessinsider.com ...
Market based...
Our country has been devastated by the campaign finance reform laws. Soros and one of his many puppets, John McCain purposely wrested power from the parties, and now control the playing field. This has led to the Koch brothers, Soros and many others leading the way to a govt/corporate crony system of capitalism that will fall apart. The do gooders strike again, and with predictable results. A worse system than before, with fewer players, and control farther away from the grass roots.
They’d do a whole lot better than the bozos who are running the place.
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