Thursday, June 2, 2011

‘Growing Risk Of a Short-Lived Default’ in U.S.: Moody’s

Moody’s Investors Service says it expects to place the U.S. government’s rating under review for possible downgrade “if there is no progress on increasing the statutory debt limit in coming weeks.”

The ratings agency said there is a “very small but rising risk of a short-lived default.”

Administration officials have warned of a catastrophic consequences if the U.S. government defaults and is unable to pay its bills.

The government has been juggling its books since the middle of May to continue making payments, but has warned that it must raise the debt ceiling by August 2 or risk defaulting on its obligations. Moody’s said:

If the debt limit is raised and default avoided, the Aaa rating will be maintained. However, the rating outlook will depend on the outcome of negotiations on deficit reduction. A credible agreement on substantial deficit reduction would support a continued stable outlook; lack of such an agreement could prompt Moody’s to change its outlook to negative on the Aaa rating.

-Tom Bemis

More Here..

Govt to Lose $14B of Auto Bailout Funds



  1. All government economic recovery propaganda ‘Sunstein” trolls as well as the military, the CIA and “homeland security” agents, including the TSA “fighting” for American freedom” ,as well as the Oama loving SEIU -NSA that expect to get government pensions in retirement ,should note that the Federal bank with Treasury connivance is already ‘temporarily” replacing government held supposed retirement investments of its own workers with IOUs.

    Swapping one book entry for another to avoid technical default .
    See Fed games here
    “Yet for all practical purposes, what is happening is that retirement accounts are now being seriously plundered, and if the unthinkable were to happen, and the debt ceiling would not rise, not only would the US be in technical default, but various retirement funds, which already are underfunded, would find themselves even more severely in the Red.”

    Some freedom ! The freedom of the banksters to rob working peoples work contracts after the trillions in the rich coup money was wasted.More $ are still needed

    Its all money printing and bookkeeping entries in full on Ponzi accounting now!
    Just like government has replaced the taxed “investments”by americans in social security funds with IOUs to pay for past wars and services.

    In this way a bi-partisan bankster/government support base is created in favor of expanding the government national debt limits .

    “Oh my god !If the debt ceiling is not increased I may lose my pension!”

    If a private company raided their workers pension funds for “cash flow” problems in this way they might be threatened with jail!

    But, in an insolvent corporate state after a financial coup, it’s just another normal day at the Fed and no financial criminals are ever bought to book.

  2. SPECTRE of DeflationJune 3, 2011 at 9:46 AM

    This is the same outfit that marked pure shit to AAA, and they knew it at the time by way of e-mails and other documents received during CONgressional Testimony. How about we open up a can of whoop ass, Percola Style, on their asses for defrauding investors with their bogus ratings. They can stick their bullshit disclaimer where the sun never shines because investors depend on them for ratings. They shouldn't be rating anything by their own words in the disclaimer.

  3. You wont be a victim unless fate decrees it. If we keep this up, it might be Christmas all over again with just one difference - we're not in Kansas anymore.

    The federal government can do pretty much anything it wants, just so long as there is no trespassing against the people. Long time coming.

    Give a hand, join arms? I'm not sure anymore.

  4. So close to the end and yet we all still stand...People at the malls buying crap they don't need using worthless paper and credit that doesn't exist.

    It is a total mind fuck...Yet is this not better than a crash where the very old, young and sick will suffer?

    Part of me want's it to just collapse so we can rebuild...The other part of me is afraid.

    Those who say they don't fear it honestly have no idea what it all really means...I was in Mexico in the early 80's and trust me it's frightening.

  5. SPECTRE of DeflationJune 3, 2011 at 7:54 PM

    Noodles123, well said on your post. The saddest part is that we should have taken our medicine when it all went to Hell in a handbasket. We didn't of course, and we have now compounded our problems exponentially, and at this point it's either inflate or die. We gave up our right to choose inflation or deflation with the transfer of pure bullshit private debt to the public, you and I included, by way of the bailouts. We are toast, as we are already paying $400 Billion+ in interest in a ZIRP environment. Just wait until the squeeze comes, and we are forced to pay higher rates. Restructuring anyone, and are there any National Parks you would be interested in buying says the Treasury to our creditors.

  6. Threats to downgrade the credit and dollar of the USA from Aaa are downright disgusting ,a plot against the mighty USA by the same idiotic cretins who got the ratings of sub prime bonds wrong .
    they rated these bonds AAA.

    Now when it comes to fiat dollar paper,Bennie bucks , it is a material fact that they are created with an American cotton content.

    This makes them AAA ,hygenicly washable ,inflatable , environmentaly safe ,export quality soft money for sure .

    The most superior high quality Aaa toilet paper in the world .

    American Made!

    It is said money has no smell but these are
    Ozone Scented in the $ creation process by being created "out of fresh air" as debt by fractional reserve banking !

    Much better at the job than say the plastic money that Australia and some other countries use.

    Plastic money
    Absolutely worthless in the toilet when spending a penny.


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