We’re not Greece, says Barack Obama as US fears grow – by Alex Spillius – 16 Jul 2011

In Democracy, Fat Cats, Law, Plutocracy, Socialism, Wealth distribution on January 28, 2012 at 3:24 pm

President Barack Obama on Friday said only “modest adjustments” were required to overhaul the debt-ridden US economy as he insisted the country was not in the same straits as “Greece or Portugal”. With Standard & Poor’s and Moody’s, two major ratings agencies, threatening to downgrade America’s top credit status, Mr Obama tried to downplay fears about the strength of the world’s largest economy, while issuing warnings to Republicans that time was running out to reach a deal on spending and borrowing. “We are running out of time, that is my main concern, and we simply need to make some tough choices,” said Mr Obama. “But contrary to what people are saying, we are not Greece, we are not Portugal. We have a chance to stabilise America’s finances for a decade or 15 years or 20 years if we’re willing to seize the moment.” Weeks of negotiations with the opposition on spending and borrowing have led to an impasse, with Mr Obama storming out of a meeting with Republicans this week declaring “enough is enough”. He needs to reach an agreement with Congress, which is partly controlled by Republicans, to raise the US government’s $14.3 trillion borrowing limit in order to allow it to continue functioning. Failing to reach a deal by Aug 2 would leave the president with an array of unpleasant options, such as not paying pensioners or war veterans, closing courts or cutting student loans. Ben Bernanke, the chairman of the Federal Reserve, warned that such a failure would be “calamitous”. He said that even if the federal government continued to pay interest to its creditors, principally the Chinese, the inability to make other payments would be a shock to the global financial system. Votes to raise the debt ceiling are usually fairly routine, but with the anti-spending Tea Party Republicans calling the shots, Republicans have insisted that the government commit to cutting the deficit before they agree to more debt. To that end, Mr Obama has agreed to cuts but wants Republicans to compromise by ending some tax breaks for wealthier Americans and corporations, which is anathema to most Republicans. The president insisted the public was on his side in wanting a “balanced approach” that would mix spending cuts and tax increases. “The American people are sold,” he said. “The problem is that members of Congress are dug in ideologically.”

[[[ *** RESPONSE *** ]]]

Even with a debt of 14 trillion as so claimed, USA will still have 2 A’s in it’s rating, AA2 to be exact, supposedly down graded from AAA! Whats with all the As and what is so ‘A’ about a nation with 14 trillion dollar debt? The Malays would say this sort of rating system is a ‘Syok Sendiri Rating’ (Wanker Rating). Any ‘A’ being associated with any nation in debt is absolutely ridiculous. Try the below re-labeling to properly reflect and warn investors or even people migrating. Tell it like it is.

RATINGS AGENCY (i.e. Moody’s, Standard and Poor’s (also commonly called S&P), Fitch, A.M. Best etc..)

AAA 0 debt (foreign and internal) for 10 years

AA 0 debt for 3 years

A+ 0 debt

A 50 million debt

A- 100 million (Malta 200 million)

B+ 500 million (Austria 800 Million)

B 1 billion

B- 10 billion (Bulgaria 35 billion, Estonia 24 billion, Latvia 31 billion, Slovakia 36 billion, Slovenia 40 billion)

C+ 30 billion

C 50 billion (Greece 86 Trillion, Romania 75 billion)

C- 100 billion (Russia at 150 billion, Poland 170 billion, Finland 270 billion)

D+ 300 billion (Argentina 300 billion, Zimbabwe 475 billion)

D 500 billion debt (Denmark 500 billion, Canada 800 billion, Sweden 600)

D- 1 trillion debt (Spain 1 Trillion, France 1.4 Trillion, Germany 1.7 Trillion, Italy 1.8 Trillion, Netherlands 2.3 Trillion)

E+ 3 trillion debt

E 5 Trillion debt

E- 10 Trillion debt (Japan 8 billion, England 10 Trillion, USA at 14 Trillion, European Union considered in whole 18 Trillion)

F 20 Trillion or more (Country dissolved?)

Guess what? The world is filled with economic failures. (*listed debts of above countries circa 2010)

SUGGESTION FOR A ECONOMIC NATIONAL SERVICE BILL Applicable during Economic Emergencies – as in interest accruing debts that will destroy or indebt a nation towards default). This will encourage existing plutocrats (perhaps also the 20 Million asset model which is much better than the unlimited one under Capitilism in link below . . . ) to speak up against policies that collude against or impoverish a nation. National service in the form of requiring the nation’s top :

10 Billionaires (C rating)

100 Billionaires (D rating)

1,000 Richest (E rating)

10,000 Richest (F rating) people to contribute up to 50% of their excess (sequestered and unused or parked in commodity) wealth should be written into law. It beggars belief that while the nation which has fostered and provided that same individual holding a citizenship is allowed to collapse while that ‘citizen’ has wealth sufficient to clear that same debt 100 times over. Think and legislate. Also see the below for issues of equitable wealth distribution :

Utopia – Capitalism with Socialist Caps on Personal Assets – US$20 Million . . .


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