April 19, 2011
It's All Coming Apart
By Monty Pelerin
Despite Government propaganda and manipulated statistics to the contrary, our economy continues to deteriorate. For every "green shoot" highlighted by the Government and its lackey media, multiple contra-examples are cited by independent analysts.
To continue to deny reality risks credibility. Perhaps that is why S&P, arguably a sock-puppet of Wall Street, on Monday made its announcement regarding the financial condition of the US. As reported by the Wall Street Journal:
Standard & Poor's Ratings Services Inc. cut its outlook on the U.S. to negative, increasing the likelihood of a potential downgrade from its triple-A rating, as the path from large budget deficits and rising government debt remains unclear.
Fitch and Moody's have not yet seen fit to change their ratings. Preservation of the little credibility the ratings agencies have left will force them to follow in the course of time.
The S&P judgment was as unexpected as a terminally-diagnosed patient finally reaching his final destination. Reaction by the political class to the "death" is likely to be characterized by the Claude Rains gambit: "I'm shocked, shocked!" How could anyone have seen this coming? Actually, the only surprise is why S&P waited so long to report on the obvious and why it didn't also remove the Triple A credit-rating of US debt. That downgrade of debt will follow eventually. Apparently S&P doesn't want to pronounce a corpse dead until it is put into the ground. Read More
