The Downgrade of the US Credit Rating

[BluBirD78]

From a AAA to AA+ rating. What does this mean? It means that the interest rate of borrowing money from other countries will go up, makes it harder for us to pay off the debt we have now (even though it can never paid off), and means that our own treasury will probably continue to buy our own debt and print more money.

Oh by the way, they are also announcing they will probably move forward with QE3 (Quanitive Easing) to help "stimulate" the economy, which I'm sure will do nothing for our economy just like the last 2 that we have had. Also remember this, technically the United States can never default on our debt, if I remember right we are the only country in the world that can "print or create" money from nothing, with that said we can always make money to pay off debt, but this alone is a disaster because it creates hyperinflation, look it up if you want to understand what hyperinflation does to a country, not good at all!! Any thoughts?

 

[MasterCLiP]

We're fucked!!

 

[Ethan]

The beginning of the end.

---------- Post added at 01:23 PM ---------- Previous post was at 01:23 PM ----------

I'm moving to the United Arab Emirates, rich bastards over there.

 

[DamageINC]

This rating does in no way mean all these things will happen. It is probably a message from the S&P more then anything else. Japan was downgraded years ago and has not suffered higher interest. France has more debt per capita then we do and enjoys the AAA rating. A lot more factors into these things then a rating. I think its the S&P being pissed off and firing back due to the recent deal. I don't really know shit though.

 

[TheDude]

The economy is a complex, confusing, rule-breaking clusterfuck that no one really fully understands.

There is no single post on this forum that can, has, or will ever completely break down and lay out all our problems for us and who is to blame.

 

[BluBirD78]

Agreed Dude and Damage, I sure hope the things I said doesn't happen but they have happened to other countries in the past, so we'll see what happens. I would hate to see America fall in the currency being devalued but the more and more they buy up our own debt, and print money the more it's going to be devalued, I believe something big is going to happen within the "Obama time", just don't know what it's going to be...

 

[TheDude]

The US economy is certainly a different beast than Japan's or Fance's

 

[DamageINC]

Of course is it, but we cant compare our own economy to itself can we? Maybe we can.

 

[UnTamed]

YOU owe us money!jkjk

 

[WaLLy]

YOU owe us money!jkjk

 

[UnTamed]

?????

 

[Ethan]

?????

I O U....Tony read each of the letters separately then you will get it.

 

[TheDude]

You compare our economy to models and exmaples of similar economic structures on smaller levels. It also depends if you are talking about macroeconomics or microeconomics. Currently, we are talking about the first.

 

[DamageINC]

OK, thanks for clearing that up.

For the record everyone we are talking about macroeconomics.. wow i know big words.

In any case i was just posting what i read in a finance article trying to make myself look smart. I dun goofed. Gonna have me a couple words with that writer ..

 

[BriAn79]

Honestly I think we it really doesn't matter if our economy is bigger than every other country out there, it pretty
much has the same basic principles. For example, we're spending way more money than we're taking in. Even in
our personal lives we know that will never last, so why should the gov. be exempt? If you haven't heard of the
Wiemar Republic and know what happened to them I would read about it.

I actually didn't know much about it till a couple of weeks ago and it's interesting. You can only spend and put
yourself, in our case our gov., in so much debt that eventually it's unsustainable. It's a simple fact that anyone
can figure out.

 

[UnTamed]

I get it ethan when I was reading wallys post the pic didn't show

 

[TheDude]

Yes the same basic principles apply. Credit makes it wacky, though.

 

[BriAn79]

Yeah I agree Dude that credit is wacky. And the ability of the Fed to print endless amounts of money with
nothing to back it up is one of the worse, if not THE worse, things that this country ever allowed to happen.

Namely because whoever controls the money supply, controls the country. Even such a superpower as
America is. The drowning of debt we're in and money printing is literally killing this country.

 

[AVC]

Shut some of those aircraft carriers down, do you know how expensive they are?

 

[TheDude]

No, I do not.

---------- Post added at 03:43 AM ---------- Previous post was at 03:41 AM ----------

Do you?