Thursday, April 21, 2011

Wake Up Call...and Liars and Crooks

S&P rating agency gave the US government the first ring to get up and straighten out its financial house with a downgrade warning. Congress had two answers. One, from the Democrats by President Obama and one from the Republicans by Congressman, Ryan. Neither will solve the financial deficits facing our government and ultimately, our economy. No one ever mentions the military budget which is over $700 billion. Both parties refer to the recent compromise on the debt ceiling which is also a shame when you consider this fact. The interest on the deficit amounts to $2 million dollars per hour or $48 per day or $336 million per week and equals $1.344 billion a month.
The IMF let the phone ring off the hook(no one picked it up)with this piece of info. Within the next two years the global banking industry will need to roll over one-quarter of their respectice GDP value in new loans to stay solvent. This is hugh when you consider all the sovereign debt nations plus our individual states not to mention the rebuilding of Japan will all be vying for the same buyers of bonds to continue the staus quo. Who you gonna call? GHOSTBUSTERS!
LIARS and CROOKS: Secretary of Treasury, Geithner who said that our deficits pose no danger to our nation, economy or the status of the dollar as the world's reserve currency. Funny, as he was saying this in a China resort town, the BRIC nations plus one, South Africa were discussing how to use another currency besides the US dollar.