US Loses AAA Credit Rating After S&P Downgrade

Respenus · 08-07-11, 05:04 PM

At least you now know how us Eurozone members feel when one after another, our economies get downgraded, after seemingly no problems for years on end. Of course the Euro "periphery" make quite large mistakes or simply lied about its expenses, yet with the contagion spreading to "core" countries it has become obvious (well it became obvious a year ago) that the wolves are always on the hunt. After they are done with the EU, they'll come looking for someone else (looking at you USA).

As far as globalization is concerned, I am not a major fan of what it has become, but there is only so much that can be done by the companies to cut costs (outsourcing) before they hit a wall. Soon, they will run out of countries with lax labour and environmental to take refuge in.

The major question for me is, why do we then the consumers come back to their products. For the same reasons why loans were so widespread before the crisis and are its root. The "disease" goes far deeper than mere globalization. Just look at what is going on in China and India with their growing middle class and rich individuals. Even in countries that have nothing, the basic human nature remains in full force. Greed and self-interest rule supreme. That's why I've stopped worrying about the global economy right now. I've become convinced of the power of the self-interest of the elites. In order for them to survive, they'll need to stop this madness. In order for them to retain power (formal or no) they'll have to give in to the demands of the people working hard for their daily bread. I'm more concerned about the high possibility that either part of that equation fails and that the powerful go into lockdown, taking everyone else with them. Still optimistic though

. Can't imagine any other alternative to optimism right now. Perhaps decisive action?

08-07-11, 05:04 PM	#9
Respenus Ace of the Deep Join Date: Sep 2006 Posts: 1,169 Downloads: 0 Uploads: 0	At least you now know how us Eurozone members feel when one after another, our economies get downgraded, after seemingly no problems for years on end. Of course the Euro "periphery" make quite large mistakes or simply lied about its expenses, yet with the contagion spreading to "core" countries it has become obvious (well it became obvious a year ago) that the wolves are always on the hunt. After they are done with the EU, they'll come looking for someone else (looking at you USA). As far as globalization is concerned, I am not a major fan of what it has become, but there is only so much that can be done by the companies to cut costs (outsourcing) before they hit a wall. Soon, they will run out of countries with lax labour and environmental to take refuge in. The major question for me is, why do we then the consumers come back to their products. For the same reasons why loans were so widespread before the crisis and are its root. The "disease" goes far deeper than mere globalization. Just look at what is going on in China and India with their growing middle class and rich individuals. Even in countries that have nothing, the basic human nature remains in full force. Greed and self-interest rule supreme. That's why I've stopped worrying about the global economy right now. I've become convinced of the power of the self-interest of the elites. In order for them to survive, they'll need to stop this madness. In order for them to retain power (formal or no) they'll have to give in to the demands of the people working hard for their daily bread. I'm more concerned about the high possibility that either part of that equation fails and that the powerful go into lockdown, taking everyone else with them. Still optimistic though . Can't imagine any other alternative to optimism right now. Perhaps decisive action? __________________