Not me ... the government of the United States of America. After a fifty year binge on spending, as Ronald Reagan said, like a drunken sailor, the hangover hits hard and the pain begins. Will the government take a cold shower and some black coffee ... or succumb to some "hair of the dog"? That is the question.
The Treasury is squawking that S&P is wrong. Readers of this blog know otherwise. On Monday, July 25 of this year the title of this blog was USA ... AA. S&P was generous giving the "+".
There are three major reasons why the ratings were cut:
(1) the 2009 stimulus was mostly squandered on government pork and not worthy projects, and on state spending subsidies, causing the recovery to be subpar, which in turn both hurts tax receipts both short & long term and elevates various support programs for those who lost jobs & incomes;
(2) a general refusal to cut government spending (Has anyone heard true "shared sacrifice", meaning cut the pay of Congress and govt. executives making over $100,000/year?); and
(3) the dishonorable actions of the Tea Party people in refusing to fund new debt to pay off old debts, in effect saying "screw you" to debt holders (who lend the government money for PAST spending).
The entire Washington crowd is the problem, as are the media dupes who propagandize the same old baloney and shams. The US is obviously a AA and would default if a 1930s level depression hit.
This is not a disaster. The US and world economies worked OK for decades - over a century - before the credit of the United States was considered "gilt edged". Perhaps those with no historical education might have trouble adjusting, but that's not Bunkerman.
Futures are getting hit fairly hard - down about 1.5 to 2% across the board. Gold is over $1,700/oz. Oil is down
Today, Bunkerman will be hiding in his bunker, probably loading magazines and oiling some "equipment" ;) Overnight Krypto will be at work after today's deluge, looking for values, and ... thinking.
PS: Bunkerman made pemmican over the weekend, ostensibly for the upcoming wilderness Epicurean canoe trip. The recipe was the best ever, cutting the beef jerky component down a bit and adding some dried blueberries. Ingredients: beef jerky, chopped walnuts, orange-flavored dried cranberries, and dried blueberries, all melded with Jif Reduced Fat peanut butter. Mix well and mold into a bar that is cylinder shape about 3" long and 1" in diameter. Wrap with wax paper and use Scotch tape to hold. For the canoe trip, I put three wrapped pemmican bars into a quart sized Ziplock bag and seal it. I made a dozen bars, good for a midday meal for six days in the wilderness.
Word of the Day
"Discarnate" - adjective [$10] a T. S. Eliot word.
Discarnate means having no physical body, separated from the flesh.
Sentence: I expect discarnate investing to fade in favor of investing in productive assets. That means all this emphasis on "liquidity" is miss-guided. An investor in better off with owning, or lending on, tangible assets.
Showing posts with label national debt. Show all posts
Showing posts with label national debt. Show all posts
Monday, August 8, 2011
Tuesday, August 2, 2011
Birth of a ?
Congress and the Bloviator in Chief have created a bill that will raise the US debt ceiling. Does anyone know what is in this bill? No.
The bill was created in the back rooms and dark corners in the Dark City. Was the public involved? No. Does the bill create prioities? No. Does the bill cut pay of the bloated Federal workforce? No.
The bill creates a special commission with much power. Who will be on it? Congressmen & women. No one from the public will have any power.
A clean bill would have been much better. Real dialogue on real issues and priorities would be better. The Dark City is still in charge and leads us ... where? To the Shining City on the Hill, a la Ronald Reagan? I think not. The denizens of the Dark City lead us a gloomy place sounding of screams and screeches and more lust for power and gluttony of its inhabitants. Ugh.
We need new leadership and new vision ...
Word of the Day
"Accoucheur" - noun [$100] French adopted into English (used in Middlemarch by George Eliot.
Accoucheur means a male midwife.
Sentence: With Barry as accoucheur, Boehner and Pelosi have created a bill reminiscent of science fiction mutant births ... a monster.
The bill was created in the back rooms and dark corners in the Dark City. Was the public involved? No. Does the bill create prioities? No. Does the bill cut pay of the bloated Federal workforce? No.
The bill creates a special commission with much power. Who will be on it? Congressmen & women. No one from the public will have any power.
A clean bill would have been much better. Real dialogue on real issues and priorities would be better. The Dark City is still in charge and leads us ... where? To the Shining City on the Hill, a la Ronald Reagan? I think not. The denizens of the Dark City lead us a gloomy place sounding of screams and screeches and more lust for power and gluttony of its inhabitants. Ugh.
We need new leadership and new vision ...
Word of the Day
"Accoucheur" - noun [$100] French adopted into English (used in Middlemarch by George Eliot.
Accoucheur means a male midwife.
Sentence: With Barry as accoucheur, Boehner and Pelosi have created a bill reminiscent of science fiction mutant births ... a monster.
Wednesday, July 27, 2011
Wednesday Word
I expect a downgrade, a default and economic turmoil.
I own no US Treasury securities either directly or in mutual funds.
Word of the Day
"Pillock" - noun [$10] British slang
Pillock means a stupid person; a fool.
Sentence: The Republican party seems dominated by delusional pillocks and determined to destroy the honor of the United States of America.
I own no US Treasury securities either directly or in mutual funds.
Word of the Day
"Pillock" - noun [$10] British slang
Pillock means a stupid person; a fool.
Sentence: The Republican party seems dominated by delusional pillocks and determined to destroy the honor of the United States of America.
Tuesday, July 26, 2011
Wrong Battle ... Wrong Weapon
The Republicans are fighting on poor ground with poor tactics. They will lose badly and damage the nation.
At Gettysburg, Lee chose the wrong ground and the wrong weapon. He had a delusional faith in the power of his men, and had little respect for the Yankee men. Thus misguided, he chose to attack heavily defended positions uphill over poor ground on Day 2 at the Devil's Den and Little Round Top. He lost. On Day 3 he ordered Pickett's Charge, a perfectly idiotic attack over a mile over open ground uphill. Even if the charge had broken the Federal lines, those men were unsupported and there was no follow-thru. Lee's only hope was a panic by Federal troops. That didn't happen and was delusional.
The Republicans have cast aside their honor and integrity to draft the bond and noteholders of American debt into their fight with Obama over spending. Yet debt represents money lent to cover PAST spending, not future spending. They risk the credit and honor of the United States of America for their "game". Do they offer a shared sacrifice?
No. Have they offered a 20% cut in Congressional pay? No. Have they offered a cut in pay and benefits for the bloated Federal workforce and the doubly bloated government contractors? No. Instead, they want the creditors of America to be their human shield.
What cowards!
Last month, Minnesota and the California Republicans showed the way. Fight spending by shutting down the government - shut off the SPENDING. In the Spring, instead, the Congressional Republicans past a stopgap budget. This October 1, they could refuse to pass appropriations for real spending without a budget deal. That would be using the right weapon in the right battle. The Minnesota and California events proved those tactics are a winner.
The Congressional Republican leaders and their Tea Party fire-eaters are being fools, as was Lee at Gettysburg. If they persist in this delusion of glory, they will cause immense damage to their cause. Just like Lee did almost 150 years ago.
Go around to the right and fight on good ground. Pass a debt limit increase and prepare to shut the Federal government down on October 1. That's good ground and the public will support it this time.
Word of the Day
"Dudgeon" - noun [$10]
Dudgeon means a feeling of offense, resentment; 'in high dudgeon' means very angry or angrily.
Sentence: America's creditors will permanently have much dudgeon if used as a human shield in an internal political fight.
At Gettysburg, Lee chose the wrong ground and the wrong weapon. He had a delusional faith in the power of his men, and had little respect for the Yankee men. Thus misguided, he chose to attack heavily defended positions uphill over poor ground on Day 2 at the Devil's Den and Little Round Top. He lost. On Day 3 he ordered Pickett's Charge, a perfectly idiotic attack over a mile over open ground uphill. Even if the charge had broken the Federal lines, those men were unsupported and there was no follow-thru. Lee's only hope was a panic by Federal troops. That didn't happen and was delusional.
The Republicans have cast aside their honor and integrity to draft the bond and noteholders of American debt into their fight with Obama over spending. Yet debt represents money lent to cover PAST spending, not future spending. They risk the credit and honor of the United States of America for their "game". Do they offer a shared sacrifice?
No. Have they offered a 20% cut in Congressional pay? No. Have they offered a cut in pay and benefits for the bloated Federal workforce and the doubly bloated government contractors? No. Instead, they want the creditors of America to be their human shield.
What cowards!
Last month, Minnesota and the California Republicans showed the way. Fight spending by shutting down the government - shut off the SPENDING. In the Spring, instead, the Congressional Republicans past a stopgap budget. This October 1, they could refuse to pass appropriations for real spending without a budget deal. That would be using the right weapon in the right battle. The Minnesota and California events proved those tactics are a winner.
The Congressional Republican leaders and their Tea Party fire-eaters are being fools, as was Lee at Gettysburg. If they persist in this delusion of glory, they will cause immense damage to their cause. Just like Lee did almost 150 years ago.
Go around to the right and fight on good ground. Pass a debt limit increase and prepare to shut the Federal government down on October 1. That's good ground and the public will support it this time.
Word of the Day
"Dudgeon" - noun [$10]
Dudgeon means a feeling of offense, resentment; 'in high dudgeon' means very angry or angrily.
Sentence: America's creditors will permanently have much dudgeon if used as a human shield in an internal political fight.
Monday, July 25, 2011
USA ... Aa/AA
Get used to it. The credit of the United States of America - the government, not the people - is not top notch anymore. The national honor has been besmirched by just about every "leader" in the Dark City. Does anyone really think that a re-run of the Great Depression of the 1930s would not bring a default ... and not just a technical one?
Now the knaves in the Dark City are bickering when there is record demand for US notes and bonds. In a Great Depression scenario, that demand would not exist. In a "worst case" scenario, interest rates for government debt would be higher. At that higher cost of funds, government spending would be even more ... much, much more. And spending on aid for the poor and indigent would be more ... much more. In that world, a true, Greek-style default would certainly happen.
USA is a Aa/AA/AA and is not a triple "A" anymore.
100 years of strong economic performance has been squandered.
And who did it? The knaves in the Dark City.
Word of the Day
"Alterity" - noun [$10] from 'alter'
Alterity means the essence of someone's or something's changed state.
Sentence: Obvious to anyone not complacent is the alterity of the credit of the government of the United States towards weakness.
Now the knaves in the Dark City are bickering when there is record demand for US notes and bonds. In a Great Depression scenario, that demand would not exist. In a "worst case" scenario, interest rates for government debt would be higher. At that higher cost of funds, government spending would be even more ... much, much more. And spending on aid for the poor and indigent would be more ... much more. In that world, a true, Greek-style default would certainly happen.
USA is a Aa/AA/AA and is not a triple "A" anymore.
100 years of strong economic performance has been squandered.
And who did it? The knaves in the Dark City.
Word of the Day
"Alterity" - noun [$10] from 'alter'
Alterity means the essence of someone's or something's changed state.
Sentence: Obvious to anyone not complacent is the alterity of the credit of the government of the United States towards weakness.
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