Useless ratings agencies offering up useless press releases

Standard & Poor’s rating agency has expressed that they may be thinking it is possible that they might be concerned that the US government might be a smidgen too far into debt. To be sure, this is a load of politicised nonsense. Many of these ratings agencies wouldn’t know what fiscal sanity was if it smashed them in the face. If they did, the US government debt would be rated at junk status. These are the same ratings agencies that continued to give mortgage backed securities (those fancy things that before the 2008 crisis seemed to be a no-risk money making behemoth) AAA ratings despite the writing on the wall; ie. right up until the point when these AAA-rated securities were literally worthless! This would be similar to these agencies recommending investing in Lehman Bros. on the eve of their collapse (oh wait, these agencies probably did recommend it!). So their credibility should be minimal, to say the least. Also, the fact that they are merely expressing mild concerns that the United States government behaves like a drunken trust funder (albeit with guns) should remove any legitimacy of these ratings agencies. The market already knows the US government is unable and/or unwilling to balance the books, hence why gold and silver are trading near record highs.

US government debt is in the trillions and the long-term debt might as well be a fake number (sadly, it isn’t). Yet, the government continues to spend money they do not have for endless wars and welfare. This type of behaviour by the federal government should be enough to condemn the AAA rating of US government debt and treasuries. The fact that the United States government still maintains this AAA rating is indicative of the politicised nature of these ratings agencies.

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