The media and the talking heads will no doubt make a big deal about S&P downgrading the U.S. debt from AAA to AA and threatening to go to A in 6 months. But it's really nonsense. The U.S. it is not possible for a sovereign nation with it's own currency, it's own central bank, and … Continue reading S and P: Not the Best Judge of Credit-Worthiness
U.S. Government Debt Downgraded by S&P. What a Farce. And Non-Issue.
Yesterday after the U.S. markets closed, Standard & Poor's downgraded their credit rating on U.S. government bonds. Previously, the U.S. government had enjoyed for over 70 years the highest possible rating: AAA. Now it is "only" going to be AA+. We should note that the other two major bond-ratings agencies, Moody's and Fitch's still rate … Continue reading U.S. Government Debt Downgraded by S&P. What a Farce. And Non-Issue.
On S&P and Government Creditworthiness
Standard and Poor's, one of the big bond rating agencies, has announced today that they are giving a "downgrade warning" on U.S. government bonds. Not a downgrade in credit rating, but just a "warning" that things could be downgraded. Ho hum. Such theatre. As if we should believe S&P. First, a sovereign currency-issuing government with … Continue reading On S&P and Government Creditworthiness
Aftershocks: Prepare for the Slowdown
I'm back from the Higher Learning Commission conference in Chicago, which is why postings have been sparse. I probably won't get really back up to speed on postings for yet another few days because I've teaching, grading, and taxes to do.In Japan, the aftershocks continue from the massive March 11 earthquake and tsunami. The global … Continue reading Aftershocks: Prepare for the Slowdown
Corporate Influence – GE and Radioactive Fallout
This morning the news came that more than 2 weeks after the tsunami in Japan, 4 of the 6 nuclear reactors at Fukashima are still not stable. Indeed, 1 or 2 of the reactors are suspected of having leaks from, at best, the pipes into and out of the core reactor containment housing, and, at … Continue reading Corporate Influence – GE and Radioactive Fallout
Possible Economic Effects of Japanese Disasters
Some information is starting to develop about the economic impacts of the events in Japan. A week ago, just after the triple disasters of earthquake, tsunami, and nuclear plant partial meltdown, it was much too difficult to foresee the probable impacts of the crisis. Now it's starting to show and the news is not encouraging … Continue reading Possible Economic Effects of Japanese Disasters
Back to a Mess
So I've returned from my little hiatus off-the-grid. And the world looks a lot worse than when I left. In Wisconsin, the governor and the Republicans have abused the normal legislative process to ram through their repeal of collective bargaining rights for public workers (at least those public worker unions that didn't endorse them in … Continue reading Back to a Mess
No, Sovereign Currency Nations Don’t Go Bankrupt
National debt continue to dominate economic and political talk. This week Moody's bond rating agency downrated Japan's national government debt. The Serious People and Talking TV Heads will be full of dire prognostications for Japan. Of course, I don't see why we should believe Moody's or S&P anymore after they reassured us for years that … Continue reading No, Sovereign Currency Nations Don’t Go Bankrupt