The Cat Is Out Of The Bag—The Prosperity Is Not To Return
As I read in the news, Standard & Poor's has cut the U.S. long-term credit rating from top-tier AAA to AA-plus on Friday; I recall a conversation with a friend of mine, a Professor of Finance in a prestigious school. We were discussing America’s future and I expressed my opinion that the dollar's dog days are about to begin, as countries will move away parking their money in US Treasury. My friend shot back, “Where else are they going to put their money?”
This morning, just one day after the downgrade of the U.S. long-term credit rating, China's official Xinhua news agency said in a commentary, "The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone."
The last week had seen wiping off $2.5 trillion from the global markets, which happened after the investors' concern grew of an impending recession in the United States, and over the growing euro zone crisis. Finance ministers and central bankers of the Group of Seven major industrialized nations are to confer via telephone to discuss the impact of this bombshell news on the financial market, since this singular act has heaped gas over the global fire, aided by the mess of euro zone debt issue.
The Xinhua commentary proclaimed, “China, the largest creditor of the world's sole superpower, has every right now to demand the United States address its structural debt problems and ensure the safety of China's dollar assets.” They stressed that the United States need to cut military and social welfare expenditure to abet world economic recovery.
Hello, wake up sheeple, your Owner is speaking!
President Obama appealed to lawmakers this morning to “set aside partisan politics and work to put the United States' fiscal house in order and refocus on stimulating its stagnant economy.” Thank goodness my President, you now understand that our economy is in shamble notwithstanding your endless euphoria over market recovery, and the bright days ahead.
If you realize our economy is stagnant, my President, why did you sign the debt deal into law last week, which is only going to worsen it? You say, you had to compromise, why? Just the other day, Bill Clinton, a two-term President suggested that you invoke 14th amendment and tell the Tea Party terrorists who took the nation’s economy hostage—take a hike, No Deal, there will be no discussion on debt limit!
What were you smoking my President to believe that spending cut will create jobs? Econ 101 says that to create job you need to spend money. The only solution to our problem is to roll back the Reagan Tax. However, you did not even give a hint of understanding this when you said this morning, “Congress to back measures to give tax relief to the middle class, extend jobless benefits and pass long-delayed international trade pacts.”
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