[Sixstrings]

They will keep this rate for a few months, maybe a year more. Europe is in even bigger mess than US and this will reflect on French rating pretty soon.

If you follow the news, sometimes you learn something. I've learned something here -- the ratings agencies are more concerned about political stability. Notice S&P never mentioned quantitative easing -- one would think they should, devaluation of a bond is at least as bad as a late payment no? One would think, but no.. S&P wants to see political stability, all their AAA countries are nations that are willing to tax their rich.

[dinopello]

I've learned something here -- the ratings agencies are more concerned about political stability.

I know that is what concerns me more than anything! When politics can't come to consensus through compromise the alternative is no fun at all.

The level of debt, IMO is not a problem in and of itself. What the debt was used to finance is.

[EnergyUnlimited]

If you follow the news, sometimes you learn something. I've learned something here -- the ratings agencies are more concerned about political stability. Notice S&P never mentioned quantitative easing -- one would think they should, devaluation of a bond is at least as bad as a late payment no? One would think, but no.. S&P wants to see political stability, all their AAA countries are nations that are willing to tax their rich.

You will be very surprised how fast France will lose their AAA, once euro crisis spreads and they are joining indebted PIIGS.
Here in Europe there is more and more noise in recent days about France becoming a next PIIGS candidate.

AAA will remain (for a time being) for resource rich countries with low density of population which are also enjoying stable political system and national currency.
I expect Canada, Australia, NZ, Norway, Sweden to keep AAA and UK, Germany and France are going to lose it.
Why?
Because they are deeply immersed in PIIGS manure and there is no easy way out of this s*it.

[prajeshbhat]

If you follow the news, sometimes you learn something. I've learned something here -- the ratings agencies are more concerned about political stability. Notice S&P never mentioned quantitative easing -- one would think they should, devaluation of a bond is at least as bad as a late payment no? One would think, but no.. S&P wants to see political stability, all their AAA countries are nations that are willing to tax their rich.

Yeah. Political stability is the key. These are the places where S&P executives would be running to when the S**t hits the fan.
People forget that when government cut taxes its not just the public that is free from tax burden, the government is also free from the burden of representing and protecting the people. When governments start talking about cutting taxes you can say categorically that there is something wrong, this government doesn't need the public any more. The American government can now just depend on the printing press for their revenue. It no longer represents the taxpayers.

[Timo]

If you follow the news, sometimes you learn something. I've learned something here -- the ratings agencies are more concerned about political stability. Notice S&P never mentioned quantitative easing -- one would think they should, devaluation of a bond is at least as bad as a late payment no? One would think, but no.. S&P wants to see political stability, all their AAA countries are nations that are willing to tax their rich.

Yeah. Political stability is the key. These are the places where S&P executives would be running to when the S**t hits the fan.
People forget that when government cut taxes its not just the public that is free from tax burden, the government is also free from the burden of representing and protecting the people. When governments start talking about cutting taxes you can say categorically that there is something wrong, this government doesn't need the public any more. The American government can now just depend on the printing press for their revenue. It no longer represents the taxpayers.

BINGO!!!

[Keith_McClary]

The dollar index is up 0.20% from open.

The USD Index measures the performance of the US Dollar against a basket of currencies: EUR, JPY, GBP, CAD, CHF and SEK

[Sixstrings]

Your error is you somehow believe that the government's job is to create jobs.

If government isn't supposed to look out for the People then what's the purpose of government? Just to enforce your oligarchy?

Jobs for the plebs was an issue even in ancient Rome. The Republic fell because the rich patrician Senators were ignoring the working man. Imported slaves had taken too many jobs. Caesar was popular with the people, one of his first measures was a law restricting foreign slave employment so that free Romans could find work.

History proves.. ignore the People at your own peril.

Austerity is nothing to be afraid of.

Small businesses should be afraid of it. Your customers don't just grow on trees -- they're working folks, retirees, gov employees. Deflation isn't fun for anybody Cog but the rich, who can swoop in to buy asssets for pennies on the dollar. A lot of small business guys would go bankrupt.

EDIT: Some more thoughts on this..

Cog you are right that too much employment in the gov sector isn't good. BUT.. during economic recession / depression, gov needs to hire MORE workers not fire them. It juices up the economy, it's the only thing that can get a country out of depression. Once the private sector starts to heat up and even inflate, THEN you can cut back on the gov sector.

But you don't cut back on gov during a recession, that just makes it worse.

OTOH, Western developed nations are trending to gov workers. That's all we have in the globalist paradigm -- America's job is to be a consumer. Japan makes things, they fight to keep their yen valued lowered than the dollar. Japan wants to make things and wants us to consume them, same with China. Like it or not, that's where we Americans fit in the grand scheme of things.

Maybe 30 years from now China and India will have its own consumer base and won't need us, but that's not yet the case. For the moment the world wants America to keep consuming.

[PrestonSturges]

The dollar index is up 0.20% from open.

The USD Index measures the performance of the US Dollar against a basket of currencies: EUR, JPY, GBP, CAD, CHF and SEK

TheAutomaticEarth predicted this dollar bounce this correctly several months ago, although it may not last long.

Their track record over the last 5 years has been outstanding compared to ZeroHedge, which seems to written by dyslexic monkeys.

I'll be paying attention to what TAE says happens next.

[Sixstrings]

Obama speaks:

"It's all the Tea Party's fault." (paraphrase)

"But that's not to say there's not a problem." (direct quote)

"We're still a AAA country no matter what some ratings agency says." (direct quote)

"The good news is, we know what the solution is." (but I didn't hear the solution.. wtf? ? ?)

"Oh, and we lost a lot of troops the other day." (paraphrase)

[EnergyUnlimited]

Obama speaks: "It's all the Tea Party's fault." (paraphrase) ... "Oh, and we lost a lot of troops the other day." (paraphrase)

As I have said you earlier today, American politicians are becoming *less and less relevant* as we speak. And some of them are acting like clowns.

[Cog]

cog

i don't think anyone would accuse you of having vision

I'll leave "vision" to those who believe you can increase debt at a faster rate than GDP. That type of "vision" leads to absolute collapse. Now you might want that sort of deal but I do not.

You progressives should take some basic math courses.

[Cog]

Dup post

[Cog]

Your error is you somehow believe that the government's job is to create jobs.

Cog you are right that too much employment in the gov sector isn't good. BUT.. during economic recession / depression, gov needs to hire MORE workers not fire them. It juices up the economy, it's the only thing that can get a country out of depression. Once the private sector starts to heat up and even inflate, THEN you can cut back on the gov sector.

Ok so how many trillions you want the government to borrow this time to hire people until the private sector heats up? And do you have a plan to pay this debt off some day or just leave it to our children and grandchildren.

You just don't get it. Those private jobs aren't coming back. If you think our current economic difficulties are just another recession, you are beyond educating.

[rockdoc123]

There was an interesting article on Bloomberg today that has me wondering the question....of the unemployed how many are actually capable of getting jobs (I suppose there are only so many openings at Mcdonalds?). If the following article is true is a better use of stimulus to provide appropriate job training?

http://www.bloomberg.com/news/2011-08-07/employers-ready-to-hire-in-u-s-can-t-find-qualified-workers-among-jobless.html

Bill Begal says he has spent almost $2,000 since March on help-wanted ads in newspapers, websites, and state employment services up and down the East Coast to find sales and administrative staff for his Rockville, Maryland-based disaster-cleanup company.
“I want people to come out and work for me,” said Begal, 42, whose teams responded to hurricanes Katrina and Wilma, which struck New Orleans and Florida in 2005. “Where are they? I just don’t see it.”
Behind the highest unemployment levels in more than a quarter century is an unexpected twist: Employers like Begal and Microsoft Corp. (MSFT) are having a difficult time filling some positions, even as 13.9 million Americans remain without work. The problem is especially acute in pockets such as Washington, D.C., and North Dakota, which bucked the worst of the 18-month recession that ended June 2009, and in industries such as technology where competition for recruits remains high.
“It’s a very much across-the-board phenomena,” said Jeffrey Joerres, president and chief executive officer of Milwaukee-based ManpowerGroup, the world’s second-largest provider of temporary workers behind Glattbrugg, Switzerland- based Adecco SA. (ADEN)“Companies are all feeling the pressure of not finding the level of talent their businesses require,” from “entry-level service positions” to “high-end engineers.”

[nobodypanic]

the government to borrow this time to hire people until the private sector heats up?

whatever it takes.

And do you have a plan to pay this debt off some day or just leave it to our children and grandchildren.

plan A: growth; plan B: print.

You just don't get it. Those private jobs aren't coming back. If you think our current economic difficulties are just another recession, you are beyond educating.

capital needs these housecleaning, clear-the-deck events before it proceeds to more accumulation - it is part of how it operates. it's just getting ready to gear-up again.

[Sixstrings]

If the following article is true is a better use of stimulus to provide appropriate job training?

Uhm Rock, there's going to be anymore "stimulus." They made a deal to cut the budget, not stimulate. Post downgrade, there will be pressure to cut further.

(though adults are welcome to take on student loan debt for a job that won't be there when they graduate)

[americandream]

If the following article is true is a better use of stimulus to provide appropriate job training?

Uhm Rock, there's going to be anymore "stimulus." They made a deal to cut the budget, not stimulate. Post downgrade, there will be pressure to cut further.

(though adults are welcome to take on student loan debt for a job that won't be there when they graduate)

There will be more stimulus but the emphasis will shift to reducing the state to a mere shell. Don't be fooled by stimulus....the project to minimise the state is on track.

[EnergyUnlimited]

You just don't get it. Those private jobs aren't coming back. If you think our current economic difficulties are just another recession, you are beyond educating.

capital needs these housecleaning, clear-the-deck events before it proceeds to more accumulation - it is part of how it operates. it's just getting ready to gear-up again.

There won't be gear ups anymore .
Not this century (except of minor fluctuations on downhill trajectory).
Growth era is over.

[PrestonSturges]

There was an interesting article on Bloomberg today that has me wondering the question....of the unemployed how many are actually capable of getting jobs (I suppose there are only so many openings at Mcdonalds?). If the following article is true is a better use of stimulus to provide appropriate job training?
http://www.bloomberg.com/news/2011-08-07/employers-ready-to-hire-in-u-s-can-t-find-qualified-workers-among-jobless.html

Bill Begal says he has spent almost $2,000 since March on help-wanted ads in newspapers, websites, and state employment services up and down the East Coast to find sales and administrative staff for his Rockville, Maryland-based disaster-cleanup company.
“I want people to come out and work for me,” said Begal, 42, whose teams responded to hurricanes Katrina and Wilma, which struck New Orleans and Florida in 2005. “Where are they? I just don’t see it.”

He needs to fire his HR staff or recruiters.

In 1999, HR had to make an offer the day of the interview. Now they can do months of logrolling.

The average recruiter seems to be a 25 year old sorority girl who looks like former beauty pageant contestant. Get them out of HR and give them jobs that involve a brass pole.

Also, never ever ever believe anything about the overall job market from recruiters. They'll never say anything true, not even by accident. Here for instance - if qualified applicants are lined up out the door, you can sack the recruiters, right? So the recruiters will always make up stories about scarcity, often in the fields that are the most badly glutted with applicants.

[PrestonSturges]

Every hour the GOP is doubling down on their demands and swearing that they will rain down chaos for the next 14 months.

Why isn't the market responding well to that?