Posted on 10/18/2012 6:18:05 AM PDT by blam
PIMCO: 'THE US WILL GET DOWNGRADED'
Rob Wile
October 18, 2012
PIMCO has seen enough of the federal government's "fiscal theatre" and now says the U.S.'s credit rating will inevitably be slashed, Bloomberg's Tracy Withers reports.
“The U.S. will get downgraded, it’s a question of when,” Withers quotes Scott Mather, Pimco’s head of global portfolio management, as saying. “It depends on what the end of the year looks like, but it could be fairly soon after that.”
If President Obama is reelected, Mather said, it's likely resolution of the country's deficit “doesn’t happen in a nice way, and we have disruption in the marketplace,” he said.
Any agreement will likely lower economic growth by about 1.5 percentage points next year, Mather said.
But they may roil markets by discussing scenarios that would lead to a 4.5 percentage-point fiscal drag, he said.
(Excerpt) Read more at businessinsider.com ...
Any country which elects a race-baiting, anti-Christian, Marxist demagogue like BHO probably deserves to be downgraded.
When a culture devolves to accept the concept that consuming more than it produces is a good thing, then it has downgraded itself and is no longer great.
Pimco is the company Greenspan works for. It is huge.
I believe you have just identified what it is about Mitt Romney, which I support.
He has not said it out loud, but I believe Mitt Romney is about restoring American capability, through re-industrialization.
Re-industrialization.
It seems almost un-American, but is it the essence of what is behind American’s massive decline.
We need to make things here.
I can see an interesting scenario developing. The credit agencies will downgrade the US and interest rates will rise, the Fed will react by buying up more US debt again pushing interest rates lower, short term, but guaranteeing high inflation middle term...
That’s a point the Romney ads need to be focusing on.
" A Giant sucking sound!"
See here is the thing:
America used to make a lot of things. We had unions sure, but we had industry. And we had lots of people working, and we had trade SURPLUSES.
We were big. We were strong. And we were unbeatable.
Now China is growing. Russia is growing. We are shrinking and in debt. And the number of GOP voters continually shrinks as more and more people lose jobs.
The time is now.
Break with the past. Re-build America, now.
I agree.
However, Anti-American Communists have penetrated every branch of government, every organization and political party in the country.
It will take more that a re-industrialization....we actually need a new revolution to purge the parasites.
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