The Money Market’s Mortician

America, Debt, Economy, Elections, Europe, Federal Reserve Bank, Inflation

When Standard & Poor’s cut the American credit outlook to negative, one Canadian wag mocked the credit ratings agency’s “special talent for arriving at the morgue and predicting the demise of the deceased.”

Now the money market’s mortician has made it official:

Via the WSJ: “Standard & Poor’s said U.S. Treasury debt no longer deserved to be considered among the safest investments in the world. S&P removed for the first time the triple-A rating the U.S. has held for 70 years, saying the budget deal recently brokered in Washington didn’t do enough to address the gloomy long-term picture for America’s finances.”

Ask Vladimir Putin, who knows a lot more about inflation that does “Zero,” and he’ll tell you that downgrading obligations such as have been incurred by the USA to an AA+ score is still too optimistic.

The mighty USA’s finances “rank below Liechtenstein and on par with Belgium and New Zealand.”

Be Afraid: The Proof is in the Putin

America, Debt, Economy, Federal Reserve Bank, Foreign Policy, Government

The following is an excerpt from “Be Afraid: The Proof is in the Putin,” my new, WND.COM column:

“Left and right, the cable commentariat is currently engaged in a cut-and-thrust over the use of strong words in politics. In particular, does ‘terrorism’ describe the initial reluctance of some tea partiers to support the US government’s set-in stone spending?

Lost in this silly squabble is the following: ‘the second coming of the Republican revolution,’ as Politico.com dubbed the tea party contingent on Capitol Hill, failed to defuse the threat of the debt. Only 28 tea-party freshmen voted against the ballyhooed “Budget Control Act Amendment.”

Listen to the words of one wily politician whose country’s central bank holds almost 40 percent of dollars as reserve currency. Vladimir Putin’s response to the debt compromise was pitch-perfect, given the stakes stateside and beyond. This via RT and Press TV, respectively:

‘The current deal struck by US lawmakers will not solve the underlying issues. This colossal debt, $14 trillion or more, means that the country has been living on credit, which is really bad for one of the world’s leading economies. They live beyond their means, and put a part of their burden on the entire world’s economy. … The country is … shifting the weight of responsibility on other countries and in a way acting as a parasite.’

Having impressed themselves no end, the lawmakers who came up with the “Budget Control Act Amendment” don’t impress Putin much.

So what was the deceptive deal that was endorsed by 59 of the already stale tea-party freshmen, and got enthusiastic whoops from many among mainstream media’s menagerie of morons? …”

The complete column is “Be Afraid: The Proof is in the Putin.”

If you are interested in syndicating my weekly, WND column, kindly email me for details at ilana@ilanamercer.com. “Return to Reason“ is WorldNetDaily’s longest standing, exclusive libertarian column.

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An Egyptian Revolutionary Tribunal?

Democracy, Islam, Justice, Law, Middle East

The Egyptian court sitting in judgment of former Egyptian leader Hosni Mubarak will oblige the masses. It’ll masquerade as a court of law, but this tribunal will more closely resemble the French Revolutionary Tribunal, meting justice mercilessly by popular demand.

The Washington Post describes a rather cruel spectacle: “The first day of the ousted president’s trial transfixed Egyptians across the country as they watched a man who had once commanded respect and fear lying on a hospital gurney inside a metal cage installed in a makeshift courtroom. … His two sons, Alaa and Gamal Mubarak, hovered over him, blocking the view of their father from television cameras and the court. Gamal Mubarak twice kissed his father and frequently leaned in to confer with him as his brother stood erect, holding the Koran in his hand.”

AND:

… most Egyptians seemed enthralled by the spectacle of the former president in a cage. Some replaced their Facebook profile photo with a screen grab of Mubarak lying on the gurney. Others voiced indignation that the trial would take longer than a day. His crimes were clear, they said. They pointed to his dyed jet-black hair and what they described as his smug manner, his arms often crossed behind his head, as evidence that his health was fine.

Jack Cafferty Uncaged

Debt, Democrats, Economy, Media, Republicans

No wonder CNN uncages Jack Cafferty for only a few carefully monitored minutes every day. The old boy still has more testosterone than Dona Lemon and Anderson Cooper combined. (But then so does Soledad O’Brien.) FROM CNN’s Jack Cafferty:

“The government is selling snake oil – again.

Look closely and this so-called ‘deal’ on the debt ceiling crisis is a triumph of sleight-of-hand over substance.

Sunday night it was, ‘We will cut a trillion dollars in the first 10 years.’ By this morning a trillion had become $917 billion, which means we lost $83 billion in cuts overnight. Makes you afraid to go to bed.

In the first three years of the Obama presidency, the deficits will total about $4.2 trillion. Cutting $917 billion over 10 years, or $91 billion a year, is chump change.

Then there’s the commission, another one. Remember the commission President Obama ordered to come up with answers to this stuff last year?

They did. Their report was full of a lot of good ideas. It was ignored by the president and Congress. But they want us to believe this commission will be different.

Baloney. There has been no attempt to address tax reform or entitlement reform. That will be left for ‘The Commission.’ My guess is they won’t touch it anymore than the current crop of folks tackled it. And without those two things, we are doomed.

Supposedly there will be triggers in the legislation that will require additional cuts totaling $1.4 trillion across the board if the committee and Congress cannot agree. Color me skeptical.

We are facing more than $61 trillion of unfunded liabilities from Medicare, Medicaid, Social Security and other obligations – $61 trillion.

There is no money to meet those obligations and our government knows it. But they have the unmitigated gall to march out Sunday night as though they had found a cure for cancer and expect us to break down in uncontrolled adulation. They make me ill.”

[SNIP]

Russia’s Prime Minister Vladimir Putin, via RT: “This colossal debt, 14 trillion or more, means that the country has been living on credit, which is really bad for one of the world’s leading economies. They live beyond their means, and put a part of their burden on the entire world’s economy.”