Cincinnatus BLOG *** Political Commentary - Social Commentary

  Now that Standard and Poor's has cut its outlook on the U.K.'s AAA credit rating, can the U.S. be far behind. We're headed down the same primrose path, according to Bill Gross co-chief investment officer of PIMCO, who predicts that the U.S. "will eventually loose its top rating". How did we get to this sorry state of affairs? Unbridled spending and borrowing  - The U.S. is boosting its debt sales to $3.25 trillion for the fiscal years ending Sept 30th pushing the nation's "marketable debt" to an unprecedented $6.36 trillion. The Federal Reserve's custodial holdings of Treasuries for foreign accounts have already risen to $1.9 trillion. But the past is only prelude to the Obama fiscal future. Further deterioration of the dollar and our credit rating is a virtual certainty as… Continue reading | 1 Comment

  The road to insolvency is paved with red ink. How can the United States become insolvent? Easy, just add the Obamanomics deficits, as laid out in the President's ten-year plan, to the existing $11 trillion national debt and it will not be long before the US is unable to meet its financial obligations. Presently, debt held by the Social Security Trust Fund and other governmental agencies is $4.4 trillion, plus the remainder of the debt (owed to citizens or "foreign" owners) is $6.6 trillion. Approximately 50% of US debt is owed to foreigners, up from 31% in 2000, and this debt will undoubtedly continue to climb. If China and other foreign creditors lose their appetite for US debt, the result will be catastrophic for the dollar… Continue reading | 7 Comments