Moody's Threat of US Downgrade!

Rode on a plane this morning on the same flight with Ohio Republican Congressman Bob Latta (R-5th).

I asked Mr. Latta if he was going to do the right thing and raise the debt ceiling this week, or if Congress was going to continue to play "chicken" with Wall Street downgrading American bond paper. He said he tought this week did not look like a week in which they would reach any agreement, and then he went off on a tangent about spending.

I looked him straight in the eye, and told him to stop playing games and get the work of the people done. To which he then went off spouting about how everybody wants the budget balanced, but nobody wanted to give up their tax deductions. I told him fine- do a complete tax overhaul, and make it so I could file my taxes on a 3X5 card, and I'll be happy to do so, if that solves the problem. He then said no- the problem is spending, yada yada yada.


The next time I see him, I'll ask him if he intends to pay for his airfare in gold, since his U.S. government credit card isn't going to be worth anything, and apparently, federal reserve notes aren't going to be worth anything either after August 2nd, since he and his ilk refuse to raise the debt ceiling.
 
The only problem with I is the Euro-zone doesn't look like a good place to invest either.
China and Japan are currently increasing their US bond holdings - probably a currency exchange matter (falling dollar makes their stuff more expensive)
I'm stuck in G at the moment with only a little F (and some I that I can't unload without losing money). F makes me nervous because historicaly it really hasn't done much better than G and it has more risk.
 
clester said:
That may be a good idea, but what about some advice for what's in tsp?
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I'm debating between the F fund and the I fund. My question is, will the dollar rally or tank if we do not raise the debt limit? If it is going to rally, then the I fund is not the place to be. If it is going to tank, the international currencies/markets will rally and the I fund is the place to be. But I am a fairly good contrarian indicator, so don't follow me off the cliff!:D
 
So,my question again. Where is the safest place for tsp funds on aug 2 if you will have funds in there?
 
clester said:
I'm not sure he can spend money.
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That's how I interpret his powers. We must pay debts and obligations. However, that does not include new spending.

Federal spending, interest payments, and salaries/outlays for work already done, probably obligations. I disagree with the President on Social Security payments - I would think that's an obligation.

However, federal salaries and spending after we hit the celing, I don't think so. especially after the end of the current Fiscal year (it depends if a budget is considerered an "obligation"). And I don't think we can even go through the usual Furlough process, because obligating "essential" Feds to work means obligating more debt.

Note:I am not a constitutional lawyer. This is all the Birdeen's opinion.
 
burrocrat said:
I say yes.

The market already gone stupid a long time ago, because of the debt limit and Moody's threat and a number of other related things. Oh what a tangled web we've weaved.

That's what we're here for right, trying to guess which way the stupid market is going to go?

I'm going to say the market will be going up, fast for awhile, then slower, with a few dips, sometimes that will scare the jeebeesus out of us, but mostly just up.

I'm an optimist and a humanitarian.
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lol
 
nasa1974 said:
Will the debt limit and Moody's threat make the market go stupid.
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I say yes.

The market already gone stupid a long time ago, because of the debt limit and Moody's threat and a number of other related things. Oh what a tangled web we've weaved.

That's what we're here for right, trying to guess which way the stupid market is going to go?

I'm going to say the market will be going up, fast for awhile, then slower, with a few dips, sometimes that will scare the jeebeesus out of us, but mostly just up.

I'm an optimist and a humanitarian.
 
Come on. Let's get off this thread of have and have not. Will the debt limit and Moody's threat make the market go stupid. Let's get back on track.
 
FAB1 said:
what do you think the solution is?
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Here's an idea,

If you want to eat you got to work.

I'm an optimist and a humanitarian. I believe everyone has something special to give. And can contribute to society while feeling worthwhile and good about themselves. So give it, if you want to eat. Maybe you're good at mending socks, or telling stories to kids while keeping them from killing each other, or you excel in the janitorial sciences, or can design rockets, what have you, but if you want to eat you got to work. No exceptions.

Otherwise the wheels are coming off this train. The problem soon solves itself. Kind of like evolution.
 
Birchtree said:
Frankly my points are middle of the road - nothing extreme in them. Now if I said I'd recommend a Dept of Eugenics be resurrected on a national basis to control our 72% illegitimacy rate among the NINA croud - that would be extreme. Why are inner city schools closing in Detroit. They can't screw people through real estate taxes anymore to keep trash public schools open because every one of any sense has moved away.
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Well Birch, aside from the 2nd Coming -- what do you think the solution is? Tell me because some things just go past a certain point, and then they cant be rectified in a manner that doesnt require a police state enforcing draconian measures.
 
You are one of those overpaid public sector employees aren't you? Everyone else has to pay taxes to pay you!We are all lazy good for nothing govment employees

So theres no difference between getting up at 5am and putting in my 8 hours and the sluggard who sits in front of the TV all day that has everything handed to them for free?
 
Huh? Entitlement spending contributes to deficit which contributes to U.S. credit downgrade?

Yeah, way off track here guys.

Get back in line, there's free kool-aid you know.
 
Frankly my points are middle of the road - nothing extreme in them. Now if I said I'd recommend a Dept of Eugenics be resurrected on a national basis to control our 72% illegitimacy rate among the NINA croud - that would be extreme. Why are inner city schools closing in Detroit. They can't screw people through real estate taxes anymore to keep trash public schools open because every one of any sense has moved away.
 
You guys are scaring me. Folks use extreme cases all the time to prove their point. C'mon, what if it was you who needed help?You are one of those overpaid public sector employees aren't you? Everyone else has to pay taxes to pay you!We are all lazy good for nothing govment employees in the eyes of most folks. Be careful. You might get what you ask for.
 
ExtremeWX,

My friend you could even have a worse problem. The school bus could be busing your kids way across town into a school full of minority at risk illegitimates just to try and integrate the liberal system. I've been through that stink. Creeps call the policy racial parity designed to elevate the poverty bunch to some semblance of good manners - but of course the opposite happens. Guess why they recently closed 26 public schools in Kansas City.
 
Think of it this way....
You work 40 or 50 hours a week busting your @$$, then when payday rolls around, you have to go to the ATM, take out some of your hard earned money and go up to someones house that is living on welfare and hand them $100.00 cash. Who knows what they do with the cash. I'm sure some buy food clothes for thier kids. Others buy beer and a carton of smokes. A majority of them are very happy not working and living their life in or near poverty and taking handouts.
It is hard to take....
My thoughts...
 
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