Thursday, August 19, 2010

Time Is Running Out

The Great Recession has dramatically shrunk the time left for the big AAA states to prevent a full-blown sovereign debt crisis as their demographic time-bomb threatens, US rating agency Moody's has warned. 

"Genuinely adverse debt dynamics were only expected to materialise in 15 to 20 years. The crisis has 'fast-forwarded' history, eroding all the time available to adjust, " said the group's quarterly Sovereign Monitor.
Moody's fears that the US will crash through its safety buffer by 2013 if growth falters (adverse scenario), with interest payments topping 14 percent of tax revenues. The debt-to-revenue ratio has already doubled in three years to 430 percent. 
The US, UK, Germany, France, and Spain are all at risk of an "interest rate shock", either because they must roll over a cluster of short-term debt (US, France, Spain) or because deficits are so large.
Countries that "fail to demonstrate the level of social cohesion required to stabilise debt" will lose their AAA rating. "Intra-generational" conflict between young and old requires careful handling. States that delay pension reform risk spiralling downwards.
Moody's said the world had changed since Europe's debt crisis. None of the large sovereign states can still assume it is credit-worthy. "The burden of proof now falls on governments," it added.

More Here..

12 comments:

  1. Isn't this just lovely? And our dear leader is going on his SIXTH holiday of the year. Like he gives a rat's ass about this country.

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  2. We'll never see elections in 2012. Adverse economic and populace conditions will postpone elections in 2012!

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  3. Who would of ever thought they'd be an incompetent negro in the WH? Louis Farrakhan would have been a much better choice.

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  4. Wouldn't it be better to just admit that President Obama is the man for the job and get over it? Can't any of you haters see yourselves for what you are? Look in your cracked mirror and admit that a democratically elected black man is the leader of the free world and quit complaining. After his second term is over you will see. You won't recognize this country. Hope and Change will triumph. Most of you voted for him or didn't vote at all, admit it.

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  5. 12.55- The above has been an unpaid political announcement by Joseph P. Biden, V.P. of USA.

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  6. After his second term is over you will see. You won't recognize this country.
    Oh God you've got that right. The riots, the starving, unemployed, street people, homeless, overtaxed, check points, military in the streets, states collapse, MUCH bigger deficit, VAT TAX, health tax, green tax, bigger housing collapse, A GREAT DEPRESSION and finally "The Road". Go rent it. That's your hope and change, folks.

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  7. Just saw "The Road" a few nights ago. Indeed, that's what we can look forward to, a completely collapsed country, full of thieves, rapists and murders. No order, just full blown anarchy.

    Now that there are no more jobless extensions, and we continue to average 480,000 lay offs/terminations every week, you can expect collapse, social unrest and violence to begin before the year's end.

    Suicide is already common among the unemployed, it will only get worse, as the Traitor in Chief heads off on another of his many vacations.

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  8. Mad Max or the Road are extremes...I see us as Mexico circa 1988 or Argentina 2001.

    Even the Roman empire crumbled over time...I just see everything slowly getting grayer and grayer...Weird thing is:

    1. I think we need it to focus on what's important...Family, values, independence, work ethic

    2. Wake people up from this materialistic self absorbed state we live in

    3. After the culling a stronger minded people will be there

    4. Some of the most important aand sweetest times were when I was very poor because they were real...You'll see who a real friend is in times when we're all scraping by or need a hand.

    I'm not looking foward to it but could be worse.

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  9. I think similarly 4:19, with a few variations.

    Society will divide into two groups that will have very little contact with each other: Debauched people and healthy people.

    Debauched people will be thugs, thieves, drug oriented men with sexually degraded women (sluts), and just a big assortment of these dumber, degenerate kinds that hardly know each other but interact anyways.

    Healthy people will be those trying to maintain what there is who have close families, will work together for greater purpose, and will avoid the debauched parts of "society" as much as possible.

    This fabric has already shaped up though. Go to a bar or club and what you'll find is a bunch of drug addicted losers with trashy girls who like being abused. Who really knows what kinds of people are really lurking in these places. Shows and commercials seem to give the wrong image. Colleges are the same, forget being a place for aspiring young scholars, it's a place for degenerates to gather and share dope.

    This was a big reason why the country has went this course in the first place. Young people who were determined to do well suffered and had no environment to strive in. There is a black hole sucking everyone into it and the creator is inconspicuous.

    When time does run out, where will one be stuck at and who will one be stuck with?

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  10. I'll tell you what's inconspicious dude ----

    Your friggin' mind

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  11. This is right on the money. To 1:50, If I look back ten years and look at things today, I am already not recognizing America as it was just a short time ago. Sixty percent of retail space sits empty, whole neighborhoods vacant, people are not on the golf courses, there are no boats on the lakes, etc. America has already become unrecognizable in many ways.

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  12. @4:05, actually the new unemployment numbers for this week got way worse. Instead of numbers in the 480k range, the new number for this week was 500k!

    This country is so screwed!

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