America’s Credit Rating Cut – Why are so many shocked?

It should not be lost on anyone, with the exception of Geithner, Bernanke and Greenspan (GBG)  as to why S&P cut America‘s credit rating from AAA to AA. The country relies on foreigners to funds its deficits and has been doing so for decades. They will argue that it should never be cut because they can always resort to printing money and can therefore always pay their debts.  The facts:

  • $14.3 trillion in outstanding debt and growing
  • $1.5 trillion per year annual deficit and growing
  • shrinking GDP growth equals less tax revenue to service debt
  • Fed buying of US debt is nothing more than a Ponzi scheme
  • Fed buying of US debt suppresses interest rates to allow the Ponzi scheme to continue
The facts are the facts, America has been debasing its currency for over 100 years and finally, S&P has come clean and done what had to be done.  Fitch and Moody’s are in denial or can no longer be trusted or relied upon.  America has no credible plan to maintain or strengthen their currency and S&P is simply affirming that with the downgrade.   As for GBG, they can tell you they have a printing press but so did Zimbabwe.  Here is an example of the great American dollar debasement. 
If I take my $1M $Cdn, convert it to $US  at .70 back in 2003.  I invested $700,000 US into US bonds. 
Now it is 2011 and I want my money back. I sell my $700,000 in US bonds and convert it back to $Cdn at par or 1.00, I receive only $700,000 Cdn. To be clear, I spent $1,000,000 Cdn and all I get back is $700,000 Cdn.  Call it what you will, I will call it a partial default as I am not getting all of my my back as America cranks up its printing press.
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About theworldawakens

Have you ever just sat back and said "why is that". I do it all the time but now I am just going to write about it.
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