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London is ablaze. Rioting.


Cuts to their budget, just like the ones we are about to do to ours….

The only reason Americans haven’t rioted so far, is because of Obama and the Democrats insistence that Federal money is being spent as part of the stimulus plan…

In Greece, Israel, and now London, Liverpool, and Birmingham, people have been without…

Which as I said above, is exactly where we soon will be…

Not to sound callous, but perhaps one must consider the British deserve it? Likewise so will we if we too follow through with austerity cuts as did all these countries that have been rioting…

In every case, austerity cuts are the instigator….

Now austerity cuts, are really a stupid way out of a budget mess.

When you get to where your expenses are greater than your revenue stream, there are two ways to solve it… One, lower expenses so they match the revenue stream; two, raise the revenue stream so it matches the expenses… Best if you do both…

Where they failed in these nations, was to tax the wealthiest to pay for these necessary programs… Just in the numbers alone it makes so much more sense if you have to piss off someone to piss of the one percent at the top,…. than piss of the 99 percent on the bottom…..

“Hey, lets give whatever the “one-percenter” asks for.. just give it to him, and what ever it is he wants, we will take it out of the little the 99% have to fight over on the bottom…. ”

So Britain did that, and now they’ve got 99% of the population mad enough to riot, and there is only 1% with any resolve to stop them…

On the other hand, if they had taxed the wealthiest one percent (just for the sake of illustration) everything he had…. he’d be pissed. But 99% percent of the population would have jobs, would buy cars again, pay rent on time, would go out to eat, would shop to refurnish their house… 99% of the population would have jobs…..

So when the one wealthy per center, strode into the poor sections of town, and began throwing firebombs at the 5 And 10 Cent Store… 99% of the populations would descend on him, and nip his riot in the bud… “Uhh, no, you ain’t doing that here…”

So from hell it appears this notion came from, that we have to cater to the top 1% …. no, we don’t; we should be catering to the 99% of those on the bottom…. What they need, and therefore, what we need, … is to raise taxes just a tiny bit, up to 40% on the top marginal rate… and re tax capital gains, up to 40%…

Pretty soon, everyone will be too busy working to even think about throwing a firebomb through a store front window…..

Poor Standards Of Evaluation

Standard and Poors downgraded America’s rating because it miscalculated the deficit by using the wrong baseline… The future deficit was actually within the target they themselves had previously set…


Standard and Poors chose to ignore their error, and downgrade the debt anyway. They cited an impossible gridlock in Washington in which nothing could get done… Uhh, hello? I believe a compromise debt ceiling bill was passed and signed by the president… Yes, of course there was posturing. But an agreement did get signed……


Third, since their downgrade, investors have flocked to Treasuries, dropping their yield ( a good thing) simply because they are a good thing… Apparently when it comes to their own money, investors can see the US is still the safest place to keep one’s money….much, much, more safer than the AAA+ of Switzerland, Germany, Norway, and Australia. …. Huge miscalculation on the part of Standard and Poors… Again.


Three major FAILS? Standard and Poors is now rated FFF-.. one for each FAIL….

Time to change their name to Poor Standards….

Late Friday afternoon, as books were being closed all over the financial world for the upcoming weekend, one of the last great ones of summer, Standard and Poors dropped the Federal Government’s bond rating from AAA+ to AA+…….

Moody’s and Fitch’s, the other two bond rating institutions, did not…


Here is their explanation as to why…..

S&P has said their decision to downgrade the U.S. was based in part on the fact that the Budget Control Act, which will reduce projected deficits by more than $2 trillion over the next 10 years, fell short of their $4 trillion expectation for deficit reduction.

They let the Treasury know before announcing (even though word was leaked during the day’s stock trading…)

The Treasury responded with an…..” Uh, it looks here like you made a $2 Trillion math error…” Once corrected there is a $4 Trillion savings in this bill…. ”

Standard and Poor’s, sheepishly caught in their miscalculation, responded, “Oh, did you say only two trillion? That’s nothing; we’re keeping the bond rating as it is….”

So Standard and Poors thinks the amount of $2 Trillion is significant enough to destroy faith in the US Government.. and drop our rating from AAA+ to AA+ ….. but when they make a $2 trillion math error, a very basic one at that, it is not significant enough to change it back….

Obviously they have another reason for dropping the rating that has nothing to do with the reality of economics or politics… Usually when something like this happens, it means someone is on the take…..

How could they make such an error…

Specifically, CBO calculated that the Budget Control Act, including its discretionary caps, would save $2.1 trillion relative to a “baseline” in which current discretionary funding levels grow with inflation. S&P incorrectly added that same $2.1 trillion in deficit reduction to an entirely different “baseline” where discretionary funding levels grow with nominal GDP over the next 10 years. Relative to this alternative “baseline,” the Budget Control Act will save more than $4 trillion over ten years – or over $2 trillion more than S&P calculated. (The baseline in which discretionary spending grows with nominal GDP is substantially higher because CBO assumes that nominal GDP grows by just under 5 percent a year on average, while inflation is around 2.5 percent a year on average.

The impact of this mistake was to dramatically overstate projected deficits—by $2 trillion over 10 years…..

S&P did not believe a mistake of this magnitude was significant enough to warrant reconsidering their judgment, or even significant enough to warrant another day to carefully re-evaluate their analysis.

They said, “That’s our story and were sticking with it…”

Even though they know it is completely a lie and a bunch of crap.”

The magnitude of this mistake – and the haste with which S&P changed its principal rationale for action when presented with this error – raise fundamental questions about the credibility and integrity of S&P’s ratings action.

Obviously, obviously, obviously, obviously, obviously, obviously, obviously, obviously, obviously, Standard and Poor’s is more concerned with their impact on the market, than they are with whether what they say, is true, or not….
They, are the Rupert Murdoch of the bond rating services…..


Don’t listen to bull or the finger pointing by piss ants who have no power and so use events to justify their certain slants or beliefs… ..

It’s because the market got surprised by the Labor Figures yesterday and rose….

That wasn’t supposed to happen. The market was supposed to be in the 10000 by close of Friday….

Now, a little extra push is needed to make it reverse direction and go that way, and S&P is the entity in charge of executing that task.

If it doesn’t go below 10,000 by close of Monday, big money will be lost. Obviously, the closer the DOW is to that level if not below, the smaller and smaller the loss will be to those who sold short……

You see. It has nothing to do with politics. It has nothing to do with the economy.

It’s simply betting at a racetrack, ie. one thats run by the mafia…….

Hopefully you listened to me, so it doesn’t matter what the market does…. I mean (and here it is put succinctly), when the mafia puts their money on a horse, that’s one race to gotta get out of…..

There are two choices before us:

One, we tax the top 1% and live the quality of life we deserve…..

Two, we continue the tax cuts, allowing the top 1% to not pay their fair share in taxes, and continue the quality of life we’ve suffered since 2001..

Simple microcosmic view: find a pothole in today’s state road system… You can’t, it’s covered up with stimulus funded new pavement… Nice, crisp, sharply painted blacktop, as far as the eye can see….

Compare that to the Bush Era… Potholes galore and getting them fixed was like pulling teeth…

Now pull back and look at your entire lifestyle with all it’s moving parts…. first see one where everything outside your control is operating smoothly like clockwork ( a Visa commercial comes to mind), and the other where it is all cacophonous and catastrophic…..

So, in which type of lifestyle do you prefer to live?

Decide and vote.

It should be good news… more people are working than expected.

How great is that?

“Well, we were expecting this many people to have gained jobs, but… no, instead we got much more than we expected!….”

One would think the stock market would bounce on the good news!

Actually, 154,000 jobs were created in the private sector. This offsets the 37,000 Federal government jobs cut July by the Republican’s actions……

154,000 jobs? Under a Democrat president? What’s going on here?

Obviously the stimulus is working. Obama was right to deficit spend to keep up demand for services….

And I bet you’re enjoying your commute on all those newly paved roads too, aren’t you?

Now contrast this with a Republican regime… Potholes galore because they cut taxes. Pot holes galore because the wealthiest top 1% was allowed to keep $1.2 trillion that normally flowed into much needed services…


Because of Republican legislation, to get to that level of spending, we had to borrow… but doesn’t it make a lot more sense to tax the top 1% that 1.2 trillion, and have this quality of life, without the deficit?

Everyone is discussing the idiocy or moth-erfuc-kings-tupi-dity of Republicans because THEY CAN’T EVEN AGREE ON A REPUBLICAN PLAN, ONE THAT SAVES US FROM A CATASTROPHIC COLLAPSE OF THE ECONOMY.

If Republicans can’t agree among themselves, isn’t that where the real problem lies?

But these are not stupid people. Some actually graduated high school.

The group that is jamming up the works, and has since we began negotiations, is the Eric Cantor Group in Congress.

They originally stated that the rise in deficit, must be matched by cuts.

When that happened, they said there must be cuts in entitlements,…

When that happened, they said the budget must be balanced….

When that happened, they said the budget must have a balance budget amendment that must get passed by 2/3 of the states in order for them to raise the debt ceiling…

That is impossible… Most states do not have legislatures in the summer, and getting that on a ballot, without a legislature in session, is near impossible.

And so they upped the ante… They said there should be a shift of $4 trillion to take care of the long term debt problem.

When that appeared to be happening, they … stormed out of the meeting, did not return phone calls, and said it was impossible to negotiate with someone who wouldn’t agree to their demands….

Since it was impossible to negotiate with someone, they decided they must pass the solution themselves in the House, and force the Senate and President to concur ……

When that appeared to be happening, they…. stormed out and voted it down, saying even it… wasn’t Draconian enough……

Some people may shake their head at this bunch and mutter under their breath… “gee, what a bunch of losers…”

They aren’t. They’re getting exactly what they want… the collapse of the economy… The last collapse wasn’t big enough… they only got one house of congress… The next one must be gigantic, flattening out all economic activity, in order for them to win both houses in 2012 and the Presidency…..

If the economy doesn’t collapse, and doesn’t collapse totally, they haven’t a prayer of being re-elected.. especially the way America feels about them now….

Never once, was there any idea among Cantor’s group, that the US debt ceiling would be raised to avoid catastrophe.

This crises is all by their design………

This is a catalog for my own benefit. You are welcome to peruse it .. But so much was happening I couldn’t get a grasp of it, so I put it here…..

Dollar collapses to record low against Swiss Franc……

Tuesday’s Congressional Budget Office analysis said the GOP measure would cut the deficit by about $850 billion over 10 years, not the $1.2 trillion originally promised. Even more embarrassing was a CBO finding that the measure, which would provide a $900 billion increase in the nation’s borrowing cap, would generate just a $1 billion deficit cut over the coming year.

California planned to borrow about $5 billion from private investors as a hedge against a possible federal government default.

Believe it or not, for those of you who lived through the nineties, Brazil’s default risk, is now lower than that of the US… Republicans have sunk us into the Third World…. Is Brazil that good, or we, thanks to Eric Cantor, really that bad of a risk?

For the first time ever…. It costs more to insure U.S. Treasuries for one year than for five years as investors anticipate that a failure to raise the debt ceiling will prompt rating companies to declare the nation in default.

Federal officials reported Friday that the economy added only 18,000 jobs in June — far below the number predicted by most economists. Unemployment inched up another tenth of a point to 9.2%. As everyone takes a wait and see stance over debt ceiling negotiations..

On the Laura Ingraham radio show Wednesday, House Speaker John Boehner acknowledged that “a lot” of Republican House members “believe that if we get past August the second and we have enough chaos, we could force the Senate and the White House to accept a balanced budget amendment.”

The Dow Jones Industrial Average settled down by 198 points, or 1.6%, at 12,303. The S&P 500 dropped by 27 points, or 2%, at 1305, and the Nasdaq sank 75 points, or 2.6%, at 2765.

Over 5 Trillion Dollars of wealth, has disappeared because of Eric Cantor and his renegade Republicans.

“Today, after it was reported that President Obama rejected a bipartisan debt ceiling plan that would have raised the debt ceiling and cut spending based on political purposes, Delaware Republican Party Chairman John Sigler released the following statement: “President Obama’s willingness to put his re-election campaign ahead of the well-being of our nation is at the height of irresponsibility. Rejecting a deal based solely on political expedience once again shows that our president is concerned about one thing, his own job,” said Chairman Sigler.”

Better take another hit, John….. Have you seen today’s news? Isn’t your accusation of Obama, exactly what the Republican Party is doing, by walking out of negotiations?

The Dem’s didn’t storm out… The losers of the logical argument did……

The global markets lost 1% today… Actually that is pretty good. The losses stemmed over the fact that Republicans won’t allow new revenue to enhance our failing budget…….

Like George Washington, they want to apply more leeches (tax cuts) which eventually will bleed the father of our country dry, and kill him dead.

There are great ideas to get around the impasse……

One was so close last week in which Obama and Boehner had come almost to a 4$ Trillion Deal… It was so, so close. Boehner was about to become the Alexander Hamilton of the 21st Century: Historians would forever know him as the man who brought America back from economic ruin…….

But Boehner’s owner, jerked hard on his leash… cracking Boehner’s trachea. He then spun Boehner to the ground, and applied zip strips to his wrists and ankles. He then tazed Boehner repeatedly. For the first time in his life, Boehner did not cry. He was then strapped to a board, tilted backwards into a tank of water, and held for 45 seconds, over 111 times. He was then blindfolded and pummelled with cans of Pepsi, embedded in old cotton socks, leaving no evidence. He then poked with a tube, in his (you know where) and the other end was attached to a fire hydrant.

The next morning, Boehner said the deal was off; he refused to return Obama’s calls.

Leaks from those working for his owners, tell us the taxes on the wealthy 1% were the sole reason Boehner was given “the treatment”… It’s a damn shame; for a package of $3 trillion in cuts, (yes, includes modifications to SS and Medicare) and a Trillion in tax increases on the top 1%… would shake the dynamics of our economy.

It would spur investment here in America.
It would therefore create jobs.
It would stop the uncertainty where America was financially headed.
It would prevent the immediate loss to our economy of $4 billion a day.
It would reduce the deficit over time, and save money spent paying interest, which could then be used for services.
It would be the proper step at this time in the direction we need to go.

But, if the US defaults on its debt, nothing in the financial markets is sacred, and when nothing is sacred, that… causes panics…

And a panic in 1929… caused the Great Depression. A panic in 2008, caused the mess we’re in right now.

The world’s managed wealth is $122 trillion… A one percent drop.. is $1.2 trillion. That is the amount, that one half, of one third our government,… cost the world today.

They are kids, playing with a live junction box… Sticking a screwdriver in the wrong hole, burns down the entire house……

(At $50,000 a job, today’s loss is the financial equivalent of putting 24 million human beings out of work)