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US Long-Term Rating Lowered To 'AA+' Due To Political Risks, Rising Debt Burden; Outlook Negative
Standard & Poor's ^ | August 5 2011 | S & P

Posted on 08/05/2011 6:52:37 PM PDT by NoLibZone



TOPICS: Business/Economy; Culture/Society; Extended News
KEYWORDS: 882011; bondcollapse; currencywar; debt; downgrade; economy; lowdollar; monday; monday88; monday882011; mondayaugust8; ratings; ratingsdowngrade; tradewar
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1 posted on 08/05/2011 6:52:42 PM PDT by NoLibZone
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To: NoLibZone

on a Friday after closing, bet this gets somebodies attention - or not...


2 posted on 08/05/2011 6:54:59 PM PDT by WorkerbeeCitizen (I STAND WITH ISRAEL!)
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To: NoLibZone
Political Risks, Rising Debt Burden; Outlook Negative

In other words, due to Obama and his Team.

3 posted on 08/05/2011 6:55:31 PM PDT by _a_0_0_
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To: NoLibZone
•The outlook on the long-term rating is negative. We could lower the long-term rating to 'AA' within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.

It's going to keep dropping

4 posted on 08/05/2011 6:55:45 PM PDT by GeronL (The Right to Life came before the Right to Happiness)
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To: WorkerbeeCitizen

bump


5 posted on 08/05/2011 6:55:45 PM PDT by ken21 (ruling class dem + rino progressives -- destroying america for 150 years.)
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To: NoLibZone

This is on the S&P website RIGHT NOW.

They aren’t reconsidering anything, or we wouldn’t be reading this.

I’m hoping some FReepers that know of such things can weigh in on just how bad this truly is. I’ve read so many theories and opinions, I don’t know what to believe. All I know, is this ain’t good!


6 posted on 08/05/2011 6:55:45 PM PDT by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: _a_0_0_

Don’t forget Bush, Clinton, Bush, etc. All the way back.

We didn’t get here over night.


7 posted on 08/05/2011 6:57:26 PM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: NoLibZone
They're only doing this to Ubama because he's black.

</sarcasm for the idiots>

8 posted on 08/05/2011 6:58:32 PM PDT by E. Pluribus Unum (Palin is coming, and the Tea Party is coming with her.)
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To: NoLibZone

Fire Obama — ASAP!!! Get that incompetent political fraud out of our White House and replace him with a pro-American, capitalist mind that will get our house in order.

I am sick of this creep and his mob of thugs and their policy to destroy our country.


9 posted on 08/05/2011 6:58:50 PM PDT by EagleUSA
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To: NoLibZone

Just more “change” we can believe in.


10 posted on 08/05/2011 6:59:25 PM PDT by EGPWS (Trust in God, question everyone else)
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To: NoLibZone

The average American has a better credit rating than the US government.


11 posted on 08/05/2011 7:00:02 PM PDT by SkyDancer (You know, they invented wheelbarrows to teach government employees how to walk on their hind legs.)
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To: KoRn

“All I know, is this ain’t good!”

Not unless you’re shorting the stock market Monday morning...

Palin ‘12!!!


12 posted on 08/05/2011 7:00:20 PM PDT by PreciousLiberty
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To: NoLibZone

This is what happens when our government is out of control and does whatever they want. Time for a big change and I’m not talking about the type of change Obama wants.


13 posted on 08/05/2011 7:00:33 PM PDT by RC2
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To: NoLibZone
"Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures."

S&P 8-5-11 on US Rating Downgrade

14 posted on 08/05/2011 7:00:43 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: NoLibZone

Liberalism is killing our economy. We were knew this decades ago and the politicians did nothing but nibble around the edges. Too little people working and too many living off the .gov by welfare etc. and entitlements and .gov employees. The chickens are coming home to roost. The 1990’s were the roaring twenties. People in the .com bubble riding high and living high on the hog. Now people will just wonder if they can have a hog. Get ready and for those of us old enough think of your grandparents and how they lived during the depression. This time I do not know if this country has what it takes to make it through hard times. I am afraid of riots and such.


15 posted on 08/05/2011 7:00:52 PM PDT by therut
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To: redgolum
We didn’t get here over night.

We were handling it until January 20, 2009.

16 posted on 08/05/2011 7:01:02 PM PDT by _a_0_0_
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To: NoLibZone

The Chicago mob and the DC thugs are planning massive levels of pain and retribution against S&P for this dastardly act. S&P, and others considering following suit, will learn that you cross The One at your own peril.


17 posted on 08/05/2011 7:01:02 PM PDT by JPG (Yes She Can!)
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To: GeronL

god help us, this just keeps getting better and better.


18 posted on 08/05/2011 7:01:45 PM PDT by WorkerbeeCitizen (I STAND WITH ISRAEL!)
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To: _a_0_0_

If I hear or see the eupemism “revenue enhancement” one more time, I’m going to throw up.

It’s time for the taxpayers to tell the taxeaters to push away from the through.


19 posted on 08/05/2011 7:02:03 PM PDT by redlegplanner ( No Representation without Taxation)
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To: KoRn
It means that money will flow out of US Treasury bonds and the bond market in general. Because this is the biggest market in the world, it means that there will be huge flows of money sloshing around the planet looking for safety and a better rate of return.

Martin Armstrong believes that a lot of this money will go into stocks, driving the DJIA to 50,000 over time. He also believes the money will go into gold, driving it up to $5000 per ounce or higher.

Others believe that stocks will go the way of bonds and all other paper financial instruments, and the money will go into physical gold and silver, fueling a rise that could take gold to $12,500 or above.

We are in for interesting times.

20 posted on 08/05/2011 7:02:06 PM PDT by Publius
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To: NoLibZone
the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges

BARRYSTROIKA

Here

May 19, 2008

21 posted on 08/05/2011 7:02:52 PM PDT by WilliamofCarmichael (If modern America's Man on Horseback is out there, Get on the damn horse already!)
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To: NoLibZone
Rats and Obama, hisself, pushed hard for raising the debt ceiling. Now S&P says "...rising debt burden..." jinxes our chance to get the rating back up.

Obama deserves impeachment for malfeasance in office---the boob has no idea how to run a country.

22 posted on 08/05/2011 7:03:02 PM PDT by Rudder (The Main Stream Media is Our Enemy---get used to it.)
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To: WorkerbeeCitizen

Boehner should resign in disgrace and shame. But these adulterous traitorous fools were ambushed by military and antipatriotic budget cuts and followed through. RINOs never resign in shame, they “change point of view” and side or back stab us.

Only when a liberal shames them do they resign. We know who their boss is.


23 posted on 08/05/2011 7:03:51 PM PDT by JudgemAll (Democrats Fed. job-security Whorocracy & hate:hypocrites must be gay like us or be tested/crucified)
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To: NoLibZone

I bet that the White House Professors are going through their Case Study textbooks trying to find the solution.

“If you can’t make a living at it. You teach it!” —————Unknown Under grad student - 1959.


24 posted on 08/05/2011 7:03:56 PM PDT by TaMoDee (GO PACK GO to Super Bowl XLVI)
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To: NoLibZone
So … for the first time in history the US is downgraded from AAA because government spending is not reduced and balanced to income.

To help get our economy moving in the right direction with jobs as a top priority coupled with lower taxes, click here to donate to Free Republic.
Please contribute today!

25 posted on 08/05/2011 7:04:00 PM PDT by vox_freedom (America is being tested as never before in its history. May God help us.)
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To: Rudder

Geitner dared say they forgot a formula in the calculation and they need to redo it so we get back to AAA. Ah, fat chance of that, like they are going to listen to him.

In other words, it’s a tacit admission of playing with formulas to look good at this point in time.


26 posted on 08/05/2011 7:05:38 PM PDT by JudgemAll (Democrats Fed. job-security Whorocracy & hate:hypocrites must be gay like us or be tested/crucified)
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To: Rudder

In a normal world


27 posted on 08/05/2011 7:06:02 PM PDT by GeronL (The Right to Life came before the Right to Happiness)
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To: _a_0_0_

Bush was a lame duck since 2006 and they were in control


28 posted on 08/05/2011 7:06:55 PM PDT by tsowellfan (Let's make the 2012 campaign: "The War on Error")
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To: PreciousLiberty
Not unless you’re shorting the stock market Monday morning...

Yea! I wonder how much George Soros will make on this move by S&P???

29 posted on 08/05/2011 7:07:38 PM PDT by CharlyFord (t)
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To: JPG

Watch them now making us guilty for not paying our taxes... I dare them call us terrorists or some other word they transformed into some biggoted N like word insult for their benefit.


30 posted on 08/05/2011 7:08:07 PM PDT by JudgemAll (Democrats Fed. job-security Whorocracy & hate:hypocrites must be gay like us or be tested/crucified)
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To: NoLibZone
HEADLINE!

Moody’s, S&P Caved In to Ratings Pressure From Goldman, UBS Over Mortgages

'splain that, S&P.

31 posted on 08/05/2011 7:08:15 PM PDT by WilliamofCarmichael (If modern America's Man on Horseback is out there, Get on the damn horse already!)
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To: NoLibZone

THIS.....is Obama’s legacy right here. He owns this.


32 posted on 08/05/2011 7:09:02 PM PDT by austinaero ((More Bark, Less Wag))
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To: WorkerbeeCitizen

Wonder how many White-House “insiders” used this information to get out before Monday?


33 posted on 08/05/2011 7:09:21 PM PDT by not2worry (A credible message needs a credible messenger because charisma without character is catastrophe.)
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To: PreciousLiberty

there will not be a Monday morning as we used to know it


34 posted on 08/05/2011 7:09:24 PM PDT by WorkerbeeCitizen (I STAND WITH ISRAEL!)
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To: NoLibZone
We also believe that the fiscal consolidation plan that Congress and the Administration agreed to this week falls short of the amount that we believe
is necessary to stabilize the general government debt burden by the middle of the decade.

HERE

35 posted on 08/05/2011 7:09:24 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: _a_0_0_
"In other words, due to Obama and his Team."

Which will immediately be spun around and blamed on the Tea Party by the Lame Stream Media...

36 posted on 08/05/2011 7:09:53 PM PDT by Mad Dawgg (If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
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To: NoLibZone
Obama, you really effed up when you signed the debt ceiling bill. It was the trajectory, stupid NOT the the ceiling. Shouldn't have signed it. You own it now. (Obama hates it when Sarah and the Tea Party are right.)

When Clinton left office, the debt to GDP ratio was 57%. When Bush left office (eight years later), the ratio was 69%. After 2.5 years of the Obama/Mugabe Rule the ratio is 97%.

Obama = EPIC FAIL.

37 posted on 08/05/2011 7:10:14 PM PDT by Chgogal (WSJ, Krauthammer, Rove et. al., STFU. Thank you.)
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To: KoRn

This is real bad. In one fell swoop The US has lost it’s A-List status in the world arena. There is also a monetary punishment that accompanies this. Any, and it surely wasn’t much to start with, so called budget cuts will be wiped out and then some by the raise in interest rates this loss in AAA status will bring. I don’t know what the figures will be once the dust settles but the USA is a whole lot deeper in debt as of now.


38 posted on 08/05/2011 7:10:30 PM PDT by Graneros ("It is no exaggeration to say that the undecided could go one way or another.")
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To: NoLibZone

39 posted on 08/05/2011 7:11:46 PM PDT by Rational Thought
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To: tsowellfan
Bush was a lame duck since 2006 and they were in control

umm, uhh...what was GDP growth then? Unemployment? Things that are needed to service debt, which determine creditworthiness?

It's one thing if honorable people run an enterprise that carries debt; it's another if delusional, self-hating incompetents do.

You meditate on that and have a good weekend.

40 posted on 08/05/2011 7:11:52 PM PDT by _a_0_0_
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To: Publius

That reminds me that the Zimbabwe stock market skyrocketed while their country collapsed too


41 posted on 08/05/2011 7:12:16 PM PDT by GeronL (The Right to Life came before the Right to Happiness)
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To: CharlyFord

I just got a newsletter earlier today from the group that runs our 401K plan. And they have bought gold and siver and are going to short the market. Hope they are right.


42 posted on 08/05/2011 7:12:30 PM PDT by therut
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To: not2worry

well, it wasn’t exactly insider information, we all knew it was but a matter of time.
(I got out last year, my timing off a tad but not by much).
But, to answer your question, I would imagine ALL the smart ones did but idealists - nnawww


43 posted on 08/05/2011 7:13:17 PM PDT by WorkerbeeCitizen (I STAND WITH ISRAEL!)
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To: NoLibZone
"..., as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently."

Standard & Poor's

44 posted on 08/05/2011 7:13:40 PM PDT by NoLibZone (Life as Nancy Pelosi knows & wants it, must end, Life As Nancy Knows it is to raise Debt 10% annualy)
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To: NoLibZone
Debbie Wasserman-Schultz, We own the economy!!

Yes you do!!

45 posted on 08/05/2011 7:14:40 PM PDT by CharlyFord (t)
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To: JudgemAll
Geitner dared say they forgot a formula in the calculation...

S&P heard Geitner blame defaulting on his taxes because of a software error, and, having none of his lameness, they reconsidered after Geitner's pleas and downgraded our rating, nevertheless.

46 posted on 08/05/2011 7:16:50 PM PDT by Rudder (The Main Stream Media is Our Enemy---get used to it.)
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To: NoLibZone

We note that in a letter to Congress on Aug. 1, 2011, the Congressional Budget Office (CBO) estimated total budgetary savings under the act to be at least $2.1 trillion over the next 10 years relative to its baseline assumptions.
///
“IN A LETTER SENT TO CONGRESS”.

EVERY Congressman who voted for the bill REID AND OBAMA wanted, needs to go.
ESPECIALLY Boehner and McConnell. They either KNEW this would happen, or they are too stupid to remain in office.


47 posted on 08/05/2011 7:17:39 PM PDT by Elendur (It is incumbent on every generation to pay its own debts as it goes. - Thomas Jefferson)
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To: Graneros

Let’s be honest here. The ongoing decline in the value of the U.S. dollar relative to other currencies — which has been going on for at least 5-6 years — was a tacit admission by the entire world that the U.S. “credit rating” was far lower than AAA to begin with.


48 posted on 08/05/2011 7:18:16 PM PDT by Alberta's Child ("If you touch my junk, I'm gonna have you arrested.")
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To: _a_0_0_

49 posted on 08/05/2011 7:18:54 PM PDT by tsowellfan (Let's make the 2012 campaign: "The War on Error")
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To: NoLibZone
"It appears that for now, new revenues have dropped down on the menu of policy options."

"...reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process."

The act contains no measures to raise taxes or otherwise enhance revenues, though the committee could recommend them."

"Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues..."

"Standard & Poor's takes no position on the mix of spending and revenue measures that Congress and the Administration might conclude is appropriate for putting the U.S.'s finances on a sustainable footing."

Anyone else smell bovine excrement here?

50 posted on 08/05/2011 7:19:37 PM PDT by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
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