The US will lose reserve currency status in next 9 to 18 months and the S&P will downgrade US debt. It is only a mater of time before US starts to default on debt, and the real crisis will smash the US down to a new level not seen since the great depression. Any reports of the Fed Res starting to play options now? The US demise is really starting to accelerate. It will take a complete paradigm shift of government budget cutting and US assets being sold off to stop the obvious train wreck. I want to sell gold and silver holdings into current rallies but this is just the beginning. Something wicked this way comes!
So let me get this right, this downgrade was good because it will finally make the U.S. serious about its debt? Isn't it the only thing they've been talking about for the last few weeks? Didnt Obama just give a speech on his plan to address the debt? But all of that was just talk, nobody took it seriously. now we can be serious about it because of S&P is serious! now we really are gonna take the debt seriously lol btw what was s&p's rating for lehman before it went bankrupt?
Why would you wnt to sell gold and silver here if you think this is just the beginning and us will lose its reserve currency status?
The stuff they've been talking about has been a drop in the bucket. The Republicans wanted to take a very small slice from the debt. The Dems wanted to leave the slice except a microscopic dot they could remove with Obama's "scalpel." No one should take any of that seriously.
As much as they talk about solving the deficit problems they arent doing anything about it and wont for years to come, the only reason why this economy is moving is because of the trillions they are borrowing. Take that away and there is no economy left.
In the long run this warning by S&P is probably a good thing, and may help to stave off the final hour. We will know when that hour has arrived, not because Medicare and Social Security have had their guts ripped out; not because there is no more head start, NSF, NIH, Bureau of Standards, or National Laboratories; nor because the National endowment for the Arts or Public Broadcasting are but distant memories, but rather because there will no longer be enough buying power left in the Federal Budget to subsidize the once mighty American, Military Industrial Complex via Israeli arms purchases, and not even enough for a few more hydrogen bombs, aircraft carriers, and missiles. And even though the delightful prospect of yet more "Democracy Building" is still heartily cheered by good Christians on Sunday mornings across America's fruited plain, sadly, there will simply be too little money left to "democratize" a sufficient number of heathens by sending them directly to Heaven.
I agree that our politicians are not taking this matter as seriously as they should. They need less debate, less fantasy, less planning and more doing and solving. Yeah I know, easier said than done. If nobody decides to slow down this death spiral it will just keep going and going. Anybody have a worst case scenario? Will we still have internet?
Does anyone know when this news has been released on Bloomberg/Reuters etc? I saw German Bunds go up 30 ticks in one move at 9:30 CET (3.30 EST), see screenshot. They started to go really crazy around 15:00 CET (9:00 EST). I guess some pigs are more equal than others?