Sunday August 7th, 2011
|Greenspan comes clean and endorses the 'Zimbabwe-Weimar Solution'
posted 08/07/2011, 10:43 PM (Bill Anderson)|
Hey, those idiots at S&P don't know anything about money and U.S. debt! Says who? The Great Alan Greenspan, that's who! Default? Fuhgeddaboutit! Here is the latest:
Former Federal Reserve Chairman Alan Greenspan on Sunday ruled out the chance of a US default following S&P's decision to downgrade America's credit rating. Granted, because I am in the Austrian camp, I don't know anything about economics and money, but I still think my question should be asked: Is not the very act of paying a debt using newly-printed money in itself an act of default? Or, maybe I should be asking a more pertinent question: What has Greenspan been smoking?
"The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default" said Greenspan on NBC's Meet the Press. (Emphasis mine)
"What I think the S&P thing did was to hit a nerve that there's something basically bad going on, and it's hit the self-esteem of the United States, the psyche" said Greenspan.
|Muni Market Prepares For "Hundreds And Hundreds" Of Downgrades Tomorrow
posted 08/07/2011, 10:43 PM (Zero Hedge)|
While the impact on Treasurys as a result of the downgrade may be limited (after all the other side of the Atlantic is about as ugly as the US, so where could $8 trillion in marketable USTs practically go... at least for now), the same may not be said about the far smaller, $2.9 trillion municipal market, which is about to see a blanket downgrade tomorrow as S&P warned on Friday night, and of which Matt Fabian of Municipal Market Advisors earlier said that "There will be hundreds and hun... (more)
|Jim Rogers: Don't See How US Can Ever Pay Off Debts
posted 08/07/2011, 11:16 PM (CNBC)|
The U.S. doesn't deserve a AA-plus credit rating, much less triple-A, commodity bull and noted investor Jim Rogers told CNBC on Monday.
Rogers said the country was unlikely to be able to pay off its debt and Standard and Poor's rating cut had come too late and should have happened long ago.
"It seems to me it's physically, humanly impossible for the U.S. to ever pay off its debt," Rogers said. "They can roll it over and continue to play the charade, but the U.S. is ... (more)
|Dollar to Be 'Discarded' by World: China Rating Agency
posted 08/07/2011, 10:43 PM (CNBC)|
The man who leads one of China’s top rating agencies says the greenback’s status as the world’s reserve currency is set to wane as the world’s most powerful policy makers convene to examine the implication of S&P’s decision to strip the United States of its triple “A” rating.
In comments emailed to CNBC, Guan Jianzhong, chairman of Dagong Global Credit Rating, said the currency is “gradually discarded by the world,” and the “process will be irreversible.” [...]
“I ... (more)