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In Response to RE: Standard and Poor's Being Investigated? REVENGE? by MBA79
I agree with that, but it does seem kind of fishy. Standard and Poor's is paid by the Federal Government as a rating agency as well as by Fannie Mae and Freddie Mac. Given the structure of the National Debt, there is no company or person in this country that could get a AAA rating knowing more than $4.5 trillion of the national debt is borrowed by the government from itself without any of its own money to pay it back. The rating should have been downgraded as soon as the federal government put Social Security, Medicare, and the Federal Pension on the National Debt.
You or I could not go to a bank and ask to borrow money to so that we can pay the minimum payments on other loans with other banks.
If the media would report on the structure of the debt, particularly the media that leans to the left, there would be far less people blaming the tea party who has been there for only 7 months. It will be hard not to show that it is not politically motivated. The political goals of Fannie and Mae, being GSEs as they are, was not to use scrutiny but now that they've been scutinized, there is some political abuses being taken against a private firm.
If the media reported all the facts right now, it would be obvious to most that the government's investigation of S&P is not a legitimate one. S&P is being used as a fall guy by the federal government who knows it perpetrated the housing bubble, under the guise of false intentions that it stated.
It was reported by the same media that Fitch affirmed the USA's credit rating at AAA, but that wasn't necessarily the whole truth. Fitch warns that if there is not $1.2 trillion in cuts by the end of November by this committee that they will take negative action on the US's credit rating. The media is silent on that, but it was the exact same report that Fitch published.
If the media started to report on the numbers coming from Social Security's Trustees, the CMS Actuary, and the Treasury Department regarding our debt, people would stop buying bonds from the US Government, and they would be justified in doing so. 20 years from now, with this structure, they will not be able to pay the people the money they're owed when they do not renew the bonds at the interest rate that they pay right now. The US is guaranteed to default because they did that deal. It will be either that or the interest expense will double or triple, on what will be far more debt than we have now and that doesn't even account for inflation between now and then.
$1.2 trillion in cuts from future spending won't solve that problem either, and it will become apparent over the next few years and if the debt is called by the bond holders, the US will not be able to pay for it without a complete shut down of the entire federal government and anarchy will be the rule of the day.