Thursday, February 11, 2010

Follow the bouncing ball - to see why they're lying to you.

The fact that the US government statistics on unemployment, inflation, money supply and other vitally important issues have gone beyond fiction and blatantly into fantasy-land isn't happening for no reason.

We have danced around this subject quite a bit over the past year or so - futurewatch posts that have commented that rising interest rates, government fees and fines, and the slashing of social benefit programs are all inevitable because the US government is actuarily broke.

In order to make tax hikes and rising interest rates more palatable, however, Powers that Be have decided to pretend that the economy is getting better, so you'll go along with them and submit to tossing the fatherless, widows, the uninsured and the unemployed out on the street to die - while making it harder for people to borrow money and confiscating more from their paychecks at all levels of government. Why would they do this, you ask? They have to. There is no choice - the austerity measures that the IMF imposes on Third World nations are being imposed here, openly or not so openly, and will continue to be in order to avoid a sovereign debt crisis. We are broke, we can't pay our debt, we're buying our own t-bills back to try and fake out the market, but everybody knows it. So TPTB now have to begin taking concrete steps to keep from being labeled deadbeats on the international market - but they won't be the ones suffering for it. We will.

Business Insider: The Money Game
Credit Suisse: America Now Has More Sovereign Risk Than Kazakhstan
Vincent Fernando | Feb. 10, 2010, 1:52 PM

...It appears that U.S. government debt and private sector credit are what hurtled the U.S. past Kazakhstan. Credit Suisse's table makes it seem as if U.S. credit default swap (CDS) spreads are far too low in relation to other nations...

Business Insider is using a chart which was apparently first posted at Financial Times, in a similar article.

Financial Times
FT.Com Alphaville
Handy sovereign risk table
Posted by Paul Murphy on Feb 10 2010.

...Here’s a ranking of countries by perceived risk, taking into account things like current account balances, public and private debt, and CDS spreads...

The accompanying chart, which I have not posted here due to its large size, shows that the obvious suspects of Greece and Iceland occupy the top two spots, and that the US is ranked 16th in terms of risk of sovereign default. In other words, the analysis of Credit Suisse shows that the US is more likely to default on its sovereign debt now than places like Estonia, Poland, or Kazakhstan.

The international community already had a feeling this was the case - but now since it has been made explicitly public over the past couple of days by means of this analysis from a reputable European source, the United States must now take equally public and explicit actions to demonstrate to all the holders of US sovereign debt that the US government can and will act to protect their interests.

Unfortunately for us, doing so means our people's best interests get flushed down the toilet.

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