Trifecta of Failure

Standard and Poor's downgraded America's Credit score to AA plus. The new rating is a notch lower than the 113 year old AAA rating. The AAA calculations in 1900 were based upon the unavoidable reality of did you have gold or not. President (R) Richard Nixon (resigned) took America off the Gold Standard 1971 and we've been playing Monopoly ever since.
Ray Charles could see this one coming and he's dead and blind. President Obama could not.

The aggressive action came after the US Congress increased our debt hole 2 trillion dollars without a clue where the money will come from. The DOW dropped 512 points and the FAA workers were woke up and told to go home. They were not being paid. All this and Congress went fishing on vacation. Now we have the FAA fishing on vacation with Kongress.

The timing is key here as Kongress announces the debt deal late Sunday night. Voting on the increase Tuesday Wednesday with President's signature . Dow responds with 512 point drop on Thursday followed with traditional FDIC Bank failures on Friday afternoon. Kongress skips town on vacation as Rome is in flames. Then Standard and Poor's saves the good part for last, they will downgrade America's credit rating after market close on Friday evening. The marketeers reportedly had the skinny and SP, Nasdaq closed off. DOW was a 60 point gain after volatile 200 point swings throughout the day. GM stock was up on strong demands for crash airbags needed for the obvious.

The irony is the Deadbeat GOP argued an increase of tax on those who pay no tax would trigger this inevitable outcome. All arguments to increase the debt hole was to avoid a downgrade in America's credit score of AAA. Most Americans questioned these Ratings since these are the same guys that rated bundled home mortgages in 2006 and Goldman's Snake Oils as AAA the best.

Adding insult to injury (R) Speaker Boehner announces he got 98% of everything he wished upon. The GOP self full filling prophecy of failures. Everything they wished to avoid became their nightmare. Makes me wonder if this guys an American or just pure scoundrel. Boehner should have never said he got 98% of his wishes. This will make excellent political theatre in the coming months.

The actions debated for months was to avoid the destiny of a recession that won't go away, highest poverty rate in history, Anemic housing propped up on TARP Life Supports, obscene unemployment and the downgraded credit score. Our destiny was not avoided and the Deadbeat GOP kept their tax immunities again. It could not have been a worse week regardless of Kongresional Actions.

Since Kongress approved the 2 trillion increase just days ahead of vacation there has been unrelenting negative fallout every day following. Bad news has come to roost after months of posturing debates.

We are out of options as we free fall into an economic crash of 2011. Zero Interest Rates, Billion Dollar Bond Buys, TARP and Stimulus have all failed. This is the fallout from the 2008 TARP bailouts that were sold as the first rule of Fascism 2big2fail. We continue with decisions that delay the much needed corrections driven by unfettered free markets and pure supply and demand. For three years we have avoided the rich taking their medicine of bankruptcy. The depression was delayed but not avoided as the economic creep continues to crawl higher and higher up the balance of wealth.

European Powers Germany, England, France, Spain, Portugal, Ireland, Greece and Italy are also deep in debt. The problem as I see it is if we're all in debt ,who holds the paper? Who loaned the money? The answer is nobody. It's all imaginary games of paper Fiat Currency. We've not lost money because it never existed beyond the tally sheets. Wealth you cannot see or touch. In the end we get our due and have delayed but avoided nothing.