And So It Begins....

For years now we have been warning about the possibility that the USA could lose it's AAA credit rating.  When that happens the interest rates that the rest of the world charges us for the $14,000,000,000,000 in outstanding loans we have will go up.  And if currently we are having a tough time making the interest rate payments at 3% interest...imagine how difficult of time we will have paying 7-8 or 9% interest?

Greece just had a bond auction to sell two year notes and the price was bid up to 20% interest....so don't think it's not possible that we are going in the same direction as Greece.

So today the top headline in the Wall Street Journal was this;

U.S. Warned on Debt Load


A blunt warning Monday from a credit-rating firm about the U.S. government's mounting debt pushed stock markets lower and intensified political divisions in Washington about how best to tackle growing deficits.


Both the Obama administration and House Republicans scrambled to gain leverage from Standard & Poor's changing its outlook on U.S. Treasury securities to "negative" from "stable."

S&P didn't lower its top-notch AAA-bond rating for U.S. government Treasury securities, and their prices initially fell but later rebounded amid optimism that the report could serve as a catalyst to force both sides in Washington to compromise.

See it here; http://online.wsj.com/article/SB10001424052748704004004576270693061767996.html?mod=WSJ_hp_mostpop_read

With arguments raging in Washington about whether to raise the debt limit and Congress recently fighting over the budget to pass temporary spending plans to keep the Federal Government open....what do you think the chances are that our politicians are going to agree on a plan to "compromise"?

Obama tells us we all need to sacrifice and come together.  Some are going to have to do with a little less while others are going to have to pay a little bit more....and if we all agree to this premise then things are going to get bright, rosy and cheerful again and we can restore America to the great nation that she was.....

I wonder if that isn't what the politicians were saying in Greece last year...and within weeks riots and unrest had started.