US credit downgraded to AA+

S&P downgraded the US credit rating today. For the first time in history.
The three main credit agencies, which also include Moody's Investor Service and Fitch, had warned that the country faced a downgrade if the government didn't sufficiently cut spending.
They didn't.

S&P said that in addition to the downgrade, it is issuing a negative outlook, meaning that there was a chance it will lower the rating further within the next two years. It said such a downgrade to AA would occur if the agency sees smaller reductions in spending than Congress and the administration have agreed to make, higher interest rates or new fiscal pressures during this period.
-Associated Press

And it was just sick the way they trotted out the woman who got shot in the head to cast the last vote on the debt bomb delay deal.

The last of the Christian Western empires

"It's inevitable the US is going to default."

This is seriously one of the best videos I've seen in a long time.
Emergent's David Murrin breaks down the global economic situation for three ditzy talking heads. It's more hilarious than the telenovela goin down inside the beltway.

"It's very simple, its (America's) empire system, its financial system is in decline, we've seen very little growth for over a decade apart from financial engineering and leveraging, which ultimately caused the debt crisis of 2008," Murrin said.
-CNBC

Defintely must see tv.

Weekly World Revolution Update

Bustin out

"You think I'm still the kid on the school bus?"

House Republicans voted against raising the debt ceiling today. Whoopee.
They want to cut spending, other than the wars of course. Oh yeah, and that whole Medicare thing, since that sort of affects much of their base constituentcy. And taxing corporations is naturally too far fetched.
Hmmm. Where are we gonna get some more money....

Polls show the public does not support a further increase in borrowing authority even as the Treasury Department scrambles to avoid a default that could push the country back into recession and rattle markets across the globe.

The Treasury Department has been tapping alternate funding sources, such as federal employee pensions, to cover its obligations since the debt limit was reached on May 16, but has warned it will run out of options if Congress does not act by August 2.
-Reuters

Our pensions.
And that won't even get us through the summer.
Wow.
It'll probably buy a couple of lucky bankstas some swanky greek islands though.

US Debt animation from NMA

Lol.

Getting blown while the world burns

As US Debt races towards the national debt ceiling (ETA = tomorrow) that was raised just last year, word out of New York is that IMF head Dominique Strauss-Kahn was arrested on board a Paris-bound flight for forcing a Times Square hotel employee to give him - yup, you guessed it, head.
Talk about theatre of the absurd.
The alleged incident took place at the upscale Sofitel hotel on West 44th Street near Times Square.

The trouble began at around 1 p.m. yesterday when a 32-year-old housekeeper entered Strauss-Kahn's $3,000-a-night suite at the luxury Sofitel on West 44th Street -- apparently unaware he was still inside.
The married Strauss-Kahn was in the bathroom, and emerged naked, chased her down a hallway and pulled her into a bedroom, where "he jumps her," a source said.
"She pulled away from him and he dragged her down a hallway into the bathroom where he engaged in a criminal sexual act, according to her account to detectives," Browne said. "He tried to lock her into the hotel room."
Soon afterward, Strauss-Kahn got dressed and headed off to JFK for a flight to Paris.
When he was approached on the plane by Port Authority cops, he said, "What is this about?" sources said. He was taken off the aircraft without handcuffs.
Two law-enforcement sources said Strauss-Kahn was trying to flee authorities. Police said he left his cellphone and other personal items in the room.
"It looked like he got out of there in a hurry," Browne said.
Strauss-Kahn, who had a meeting planned for today with German Chancellor Angela Merkel in Berlin, has an arrangement with Air France that allows him to get on any flight and sit in first class, the sources said. He was traveling alone.
-NY Post

I guess it shouldn't be any surprise. Not only does Strauss-Kahn have a history of sexual deviance AND corruption, but the IMF has been raping developing nations for decades. The only thing that's truly newsworthy about the story is where it happened. This really speaks to the world banking cabal's opinion of the United States. Or is it the other way around? Is this like that scene in Godfather II where the corrupt Senator wakes up next to a dead hooker? Hmmm.
When you're the hooker, or in this case, the housekeeper, does it matter which rich rapist is ultimately guilty?

We are in an ongoing global economic depression. The signs are everywhere, even as they are lost on economic leaders that put private banks and short-term speculative capital before citizens and long-term working capital. Central banks use other people’s future money in the form of debt to do this. No central bank holds, and thus enables, more national debt than the Federal Reserve.
I hate to keep repeating this, but until someone of some ability to do anything gets it, I’m going to keep going. Last week, Fed chairman, Ben Bernanke, co-enabler with Treasury Secretary, Tim Geithner (among others) of our ballooning debt and mis-prioritized economic policy, urged Congress for another debt cap increase, or else. The guy holds about $2.5 trillion of debt on his books, being used for – nothing helpful to the general economy. A simple transfer would solve the debt cap problem in a nanosecond. Going a step further, a simple exchange of any of the $1.5 trillion of excess bank reserves receiving interest from the Fed, would do the same. Instead of defaulting on, how about retiring, some debt? Thinking outside the box.
All around the world, the bodies and countries with the most power keep screwing people (some like IMF head, Dominique Strauss-Kahn, literally) and entire nations, while supporting their banking systems.
-Nomi Prins