Monday, June 13, 2011

Greece is lowest...and US is worse

Standard & Poor's downgraded Greece's credit rating by three notches today, making it the world's lowest rated country. They're apparently bullish on a Greek default.
A restructuring of Greece's debt — either with a bond swap or by extending maturities on existing bonds — looks increasingly likely to be imposed by European policymakers as a means of sharing the burden of Greece's crisis with the private sector, S&P said in a statement.

"In our view, any such transactions would likely be on terms less favorable than the debt being refinanced, which we, in turn, would view as a de facto default according to Standard & Poor's published criteria," the agency said.

On Wednesday, there will be a general strike, and the general assembly will vote on the "mid-term" agreement with the Troika. And the protestors, some of whom have been camped out in Syntagma square for three weeks now, are threatening to blockade the parliament if they vote away Greece's future to the bankstas. Not surprisingly, Greek officials are cleaning out the underground tunnel from the Greek parliament to Lykavitos and the sea port of Piraeus.

Greek politicans are actually preparing to have to scurry away from an unpopular vote through a tunnel, fearing for their lives.
The Greeks have an excellent opportunity to become the re-birthplace of democracy.
How cool is that?

Meanwhile, over in the #1 exporter of democracy, PIMCO founder and co-CIO, Bill Gross, told CNBC that the United States is actually worse off than Greece.
Much of the public focus is on the nation's public debt, which is $14.3 trillion. But that doesn't include money guaranteed for Medicare, Medicaid and Social Security, which comes close to $50 trillion, according to government figures.

The government also is on the hook for other debts such as the programs related to the bailout of the financial system following the crisis of 2008 and 2009, government figures show.

Taken together, Gross puts the total at "nearly $100 trillion," that while perhaps a bit on the high side, places the country in a highly unenviable fiscal position that he said won't find a solution overnight.


Which begs the question: What will it take to get the American people to surround congressional hill?