Do you remember, just a couple of months ago, when all the cable news stations, and media outlets were covering the U.S. debt negotiations 24/7?
It was good drama, folks, but in reality that’s all it was. You see, the lawmakers in this country have no horse in the race to reduce our debt. Because they know, all too well, by just looking over at the riots in Greece, that taking something away from people won’t get them re-elected.
They throw out big numbers to confuse people, they talk about reducing the debt over a 10-year period. Folks, the plain hard truth, is simple… either we begin to cut away trillions of deficit spending, or our kids and grandkids will have to pay the price, with crushing tax burdens, and lost freedoms.
And that brings me to what came out of those meetings in August… You may recall, that a Congressional Super Committee was formed to figure out how to cut $1.2 Trillion of discretionary spending. The Committee was made up of an equal number of lawmakers from both sides of the aisle. So, right there, you are probably questioning their ability to agree to anything.
And that may be bang on, for what have you heard from the recent Super Committee? Nothing, absolutely nothing… can we sit here and believe that the old saying of “no news is good news?” I don’t think so!
Because, one of the agreements from the August meetings was that if the Super Committee doesn’t come up with a plan to cut $1.2 Trillion in spending by Thanksgiving, then the $1.2 Trillion is supposed to be automatically cut from discretionary spending!
As I look out on the horizon, this is what I see, and Lord help us if I’m right. I see the Super Committee coming out of a room exhausted and throwing in the towel. I then see lawmakers backpedaling on the automatic cuts, and attempt to “forget about them.”
If they do that, then I see the ratings agencies of Moodys and Fitch joining S&P’s downgrade of the U.S. credit rating with a downgrade of their own!
Now, you might say, that Treasuries haven’t really been hurt since the S&P downgrade. Ahh yes, grasshopper that is true. But that’s because it was just one ratings agency cut our debt. If all three go for the U.S. credit rating’s throat, then we could really see some major dollar selling. Probably not like we’ve seen before!
And, what if the $1.2 Trillion in cuts gets implemented by one of the two ways? It will be a return to the recession once again.
So there you have it, and am I barking up the tree too early? I don’t think so. Thanksgiving is only three weeks away. Given what we’ve heard from the Super Committee so far (bumpkus), I’m guessing we’ll see the dollar get cooked this Thanksgiving, right along with the turkey!
source
It was good drama, folks, but in reality that’s all it was. You see, the lawmakers in this country have no horse in the race to reduce our debt. Because they know, all too well, by just looking over at the riots in Greece, that taking something away from people won’t get them re-elected.
They throw out big numbers to confuse people, they talk about reducing the debt over a 10-year period. Folks, the plain hard truth, is simple… either we begin to cut away trillions of deficit spending, or our kids and grandkids will have to pay the price, with crushing tax burdens, and lost freedoms.
And that brings me to what came out of those meetings in August… You may recall, that a Congressional Super Committee was formed to figure out how to cut $1.2 Trillion of discretionary spending. The Committee was made up of an equal number of lawmakers from both sides of the aisle. So, right there, you are probably questioning their ability to agree to anything.
And that may be bang on, for what have you heard from the recent Super Committee? Nothing, absolutely nothing… can we sit here and believe that the old saying of “no news is good news?” I don’t think so!
Because, one of the agreements from the August meetings was that if the Super Committee doesn’t come up with a plan to cut $1.2 Trillion in spending by Thanksgiving, then the $1.2 Trillion is supposed to be automatically cut from discretionary spending!
As I look out on the horizon, this is what I see, and Lord help us if I’m right. I see the Super Committee coming out of a room exhausted and throwing in the towel. I then see lawmakers backpedaling on the automatic cuts, and attempt to “forget about them.”
If they do that, then I see the ratings agencies of Moodys and Fitch joining S&P’s downgrade of the U.S. credit rating with a downgrade of their own!
Now, you might say, that Treasuries haven’t really been hurt since the S&P downgrade. Ahh yes, grasshopper that is true. But that’s because it was just one ratings agency cut our debt. If all three go for the U.S. credit rating’s throat, then we could really see some major dollar selling. Probably not like we’ve seen before!
And, what if the $1.2 Trillion in cuts gets implemented by one of the two ways? It will be a return to the recession once again.
So there you have it, and am I barking up the tree too early? I don’t think so. Thanksgiving is only three weeks away. Given what we’ve heard from the Super Committee so far (bumpkus), I’m guessing we’ll see the dollar get cooked this Thanksgiving, right along with the turkey!
source
