The EU defaults and threatened defaults increase capital flight. Flight to where? To US treasuries. The Standard & Poors rating drop, I suspect, has the purpose of making our treasuries look less attractive -- making them more less attractive to borrowers. A IOUs are priced according to expected deflation (or inflation, when there is any) and risk of default. When Standard & Poors cuts the rating of a nation, always has much more of an impact what the raters say they judged their decision upon. (In other words, their own decision is the most powerful determinant of the credit worthiness they supposedly are basing their judgement upon.) So US treasuries sell at a higher interest rate. (In other words, US IOUs of a given face value are commanding a lower price because of alleged perceived default risk -- they command less money - meaning that for the US loanable funds are more expensive for to obtain). And obviously it was done on purpose.
In the late 1920's and 1930's the US conducted policies to help out the British gold standard -- deliberately hurting the dollar, to keep gold from migrating to the US. The system is different now, but not the willingness of our elite to sacrifice the American middle class to help out the financial elites of Europe so they aren't abandoned by international investors the way Latin American nations so often have been. This is what internationalism is all about. We are hurting as we are -- yet finance will cheerfully hurt us much more to keep investment bankers secure in their European investments, for example, relatively speaking booming German industry.
American's should reject the line Murdoch (Fox News) and other Rothschild mouthpieces and the raters are forcing on them -- that lie that rating decrement came because the government couldn't agree on a budget and even that they could not increase the budget. (Why would increasing our debt renew their confidence? It wouldn't. They just want our borrowing business.) Most absurd is the oft repeated explanation that Obama is a Marxist. Give me a massive break! This Harvard trained shyster from a banking family has filled his administration with Goldman-Sachs people -- and with Lawrence Summers, Paul Volker and a host of others -- and these determine his economic policy -- policy which I am sure Obama does not understand at all -- except in understanding what most Americans miss, that the measures he takes to rescue the economy are really measures to plunder it. It's nuts to say, for example, that Obama's Health Care Program is "socialism" when in fact it cuts services up and down while only extending benefits at the margin, where in fact, hospitals were already carrying this load -- at least the non-profit ones -- by not turning away anyone in need. Health Care is all about robbing the medical sector -- the last of the plums that had not been picked.
Every move the administration takes, and the Congressional top leadership of both parties takes, are calculated to enrich further the financial sector at the expense of the household sector, the public goods sector, and the domestic production sector.
Remember, these powerful people who can make disasters with impunity have set themselves up to provide emergency loans, disaster reconstruction loans, loans for waging a 100 year war on terror or bankrolling invasions of Moslem countries that China and Israel find troublesome -- are not these wars -- created by the phony Mossad-CIA conducted false-flag attacks of 9-11, merely services we perform to work of the debt we owe to Zionst bankers and the princelings running China's "communist" government.
Remember, in China as in the US -- organized crime involved in finance and drugs and the crime-syndicate selling of a nation's labor and resources -- thrives on keeping labor costs low, by keeping nonexistent any opportunities for private enterprise funded by the people's own savings and earning to the producer's exclusive profit. The ratings caper is no exception.
May I suggest that you throw the money changers out of the temple, repudiate all debt to them, and substitute national treasury notes distributed by a mechanism of social credit.
Let me again refer you to this page --
http://www.citizensamericaparty.org/socialcredit2.htm
which is intended eventually to become steak through the heart of the vampire Money Power.
Dick Eastman
Yakima, Washington
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