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View Diary: Futures market sink, as Fitch Ratings put US on "Negative Watch" Status (19 comments)

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  •  Don't these R's (4+ / 0-)
    Recommended by:
    Trix, barbwires, Catte Nappe, lordcopper

    these downgrades

    ADD to our National Debt (in increased Interest Payments)

    -- Not subtract from it.


    As I recall the previous Downgrade in 2008-2009,

    cost the Treasury about an extra $120 Billion, in extra interest (risk premiums), just the first year.

    (something like that, anyways.)

    •  That's the Goal. Jack Up Cost of Borrowing (2+ / 0-)
      Recommended by:
      jamess, Kevskos

      to justify even more program cuts.

      We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

      by Gooserock on Tue Oct 15, 2013 at 02:39:08 PM PDT

      [ Parent ]

    •  Last time agencies cut US rating, US borrowing... (2+ / 0-)
      Recommended by:
      jamess, lordcopper

      ....costs decreased.

      Learn about Centrist Economics, learn about Robert Rubin's Hamilton Project. www.hamiltonproject.org

      by PatriciaVa on Tue Oct 15, 2013 at 02:50:00 PM PDT

      [ Parent ]

      •  That's because the global economy was in such (3+ / 0-)
        Recommended by:
        PatriciaVa, Kevskos, jamess

        bad shape.  We had the "cleanest dirty shirt".  This would be a self inflicted wound of epic proportions.  This might actually create sufficient impetus for the rest of the world to find another reserve currency.  But I'm sure you know this judging from past comments.

        "Because I am a river to my people."

        by lordcopper on Tue Oct 15, 2013 at 03:34:18 PM PDT

        [ Parent ]

        •  Equities may go down, that I concede. (2+ / 0-)
          Recommended by:
          jamess, lordcopper

          But once you sell equities, you need to park your funds in a store of wealth.

          And nothing can compare to US Treasuries.

          Not the Yuan.  Not the Euro (which probably won't be around in five years).

          The UK and Australian debt markets are too small.

          I also believe that President Obama should invoke the 14th Amendment.

          I'd love to see the GOP challenge him on it.

          And even if it did, no way SCOTUS would rule against the executive branch.

          Learn about Centrist Economics, learn about Robert Rubin's Hamilton Project. www.hamiltonproject.org

          by PatriciaVa on Tue Oct 15, 2013 at 03:41:05 PM PDT

          [ Parent ]

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