So, we have been running up our country's credit cards for so long and only making the minimum payments while continuing our frivolous spending. Just like if you and I did it, the country's credit score just went down.(CBS/AP)
Credit rating agency Standard & Poor's says it has downgraded the United States' credit rating for the first time in the history of the ratings.
The credit rating agency says that it is cutting the country's top AAA rating by one notch to AA-plus. The credit agency said late Friday that it is making the move because the deficit reduction plan passed by Congress on Tuesday did not go far enough to stabilize the country's debt situation.
You can expect the Democrats to blame Republicans and the Republicans to blame Democrats, but they are all guilty of of playing fast and loose with OUR MONEY for a very long time. For the past couple of years we have heard Washington suggest that debt doesn't matter. Well, gents, it does matter. Some of my fellow Americans might buy that sack of s***, but people who are paying any sort of attention know what that smell is and those with skin in the game just covered up.
If you have read my financial comments in the past you have heard me explain that our money has value only because we agree that it does. It is based upon nothing more than confidence. Well today there is a dramatic announcement about the state of the market's confidence in us.
Monday markets are going to be a bloodbath. The strength of the dollar against foreign currencies will likely get hit hard. Gold should shoot through the roof as it owes nobody any money and has no nationality. The shock waves might bring our economy to a complete stop. That last part is an if. The power of the American public to delude itself continues to shock me and while the signs of rising water are easily evident and many seek lifeboats there will still be a large contingent of people who trust the talking heads, are blindly optimistic or just stupid. They will join the band in a final tune as the ship slips under the water.
Here's the part to remember, people. Those people on TV telling you it's going to be all right: the Politicians, the CEOs, the investment bankers, they have their lifevests under their suits. They see what I see, they are making moves to cover their asses for when the music stops and they NEED you to stay ignorant as long as possible.
Don't believe their BS! They are not concerned with your welfare. Look around! Ask yourself if what they say matches what you see. You are running out of time to cover your a** people. I wish you luck because this late in the game very much of your success will depend upon coincidental fortune.
