Moody's May Rate Treasuries AAA, But Central Planning Scores An F

Forbes ^ | 09/18/2012 | Bill Flax

[billflax]

Federal indebtedness recently surpassed $16 trillion. Moody’s quickly reiterated that America’s debt rating could be cut if Washington fails to navigate the approaching fiscal rapids. Can Congress keep the state ship afloat? They can’t even pass a budget. Meanwhile, with QE3, Ben Bernanke’s Fed cast credibility overboard by nakedly politicizing monetary policy.

Unfortunately, deficits and rate manipulation have muddled recovery. With currency no longer anchored to the certainty of gold and the Constitution no longer America’s political compass, Washington has led the economy adrift. Whatever Moody’s ultimately scores Treasuries the central planners are lost at sea.

Washington gets an F.

[billflax]

The economy suffers from federal meddling.

[2001convSVT]

Yep, I believe the government bonds will return every cent they contract to, but the buying power of the money returned will be a lot less.