Planned Obsolescence

It's already starting; Moodys is starting to point to a downgrade in the US "AAA" bond rating. Strange considering that borrowing more was supposed to fix the credit problem. The US is starting to operate a lot like General Motors. The government has made promises without the financial backing to realize them. Also like General Motors the government has borrowed to uphold current obligations. The key ingredient to the analogy is the fact that both the US and General Motors made economic moves which weakened their ability to gain future revenues. The end result; you'll see...

The outlook for the U.S. grade is now negative, Moody’s said in a statement yesterday after President Barack Obama signed into law a plan to lift the nation’s borrowing limit and cut spending following months of wrangling between Democratic leaders and Republican lawmakers.

But Obama said that we had to increase the debt limit to avoid crisis!? I don't think that the debt ceiling was ever the issue; in fact it wasn't --spending is. The day after the debt ceiling was raised the National Debt exceeded GDP.

US debt shot up $238 billion to reach 100 percent of gross domestic project after the government's debt ceiling was lifted, Treasury figures showed Wednesday.

Treasury borrowing jumped Tuesday, the data showed, immediately after President Barack Obama signed into law an increase in the debt ceiling as the country's spending commitments reached a breaking point and it threatened to default on its debt.

This, of course, flies in the face of everything Obama said. All of the panic, all of the chaos, was fabricated. The sheer fact that the debt ceiling would be increased was proof enough that the US is not going to make good on its debt. Everyone knows that in real-world terms the debt ceiling makes no logical sense, because it's not based on ability to repay! In the real world debt limits mean nothing, the ability to pay does. Once the National Debt surpassed GDP it was all over. I'm no economist, but I don't loan money to people who can never pay me back --it's not a loan at that point.

The Republicans dropped the ball. They did help to focus the debate on the debt ceiling, but they led a half-ass effort to stop the increase. Republicans finally got the attention they were looking for and at the highest point of visibility (publicly) they dropped the ball.

I'm starting to think that we do need a third party. If the Republicans can't hold the line when nearly all of the polling data shows that Americans back their position, how are they going to hold the line at any other point!?

This "disaster" is fabricated, the economy is being broken down on purpose. If I can see the writing on the wall don't you think that the most influential people in the world can as well?

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