US stripped of AAA credit rating by S&P over political weakness

[Rutashubanyuma]

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[h=1]US stripped of AAA credit rating by S&P over political weakness[/h] The US government's credit rating has been lowered to AA+, the first downgrade in modern US history, despite furious lobbying

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S&P has stripped the US of its AAA credit rating, downgrading it for the first time in modern US history. Photograph: Stan Honda/AFP/Getty

The credit rating agency Standard & Poor's has stripped the US of its top-notch AAA credit rating, downgrading it to AA+ and warning of further future downgrades because of political and economic uncertainty.
The downgrade and negative outlook came late on Friday night, after news surfaced of a furious rearguard attempt by the White House to convince S&P that its calculations were flawed.
The decision and the justification used by S&P – blaming the dysfunctional US political system for being unable to make significant fiscal reform – will set off another debate about US government spending and the shambolic process to raise the debt ceiling that ended earlier in the week
S&P's decision shifts long-term US government debt to the same level as Britain, Japan and other countries – but below that of Canada, Australia and France.
As a rule, a lower credit rating means higher borrowing costs for debtor nations. But because of the size of the US and its deep capital markets, it remains to be seen exactly what impact the move will have when financial markets reopen on Monday.

Reaction from both politicians and financial participants was swift, after the initial shock of the late announcement wore off.
The Federal Reserve announced that US government securities such as bonds would still be counted as AAA-rated under risk management regulations, an important decision for insurance companies and other investors who would otherwise have been faced with making massive movements in their portfolios.
Republicans were quick to highlight the downgrade – the first since S&P awarded AAA status to the US in 1941 – as a humiliation for President Obama. But S&P's statement explaining the move blamed both parties for the US fiscal mess – and had harsh words for the Republican party for ruling out any taxes increases.
"We have changed our assumption ... because the majority of Republicans in Congress continue to resist any measure that would raise revenues," S&P said.
S&P also said the budget savings agreed by Congress at the start of the week were too feeble, and blamed political weakness and instability for triggering the downgrade:

More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.
Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon.
​

The credit rating agency also said the outlook on its long-term rating was negative, warning that it could lower the long-term further rating to AA within the next two years "if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume".
S&P notified the US Treasury on Friday afternoon that it was planning to downgrade the credit rating, according to government officials, and the company sent a draft of its analysis to the White House.
White House officials then claimed to have discovered a $2tn-sized hole in S&P's calculations, and briefed journalists. But it failed to wring a delay out of the agency, which went ahead with the downgrade.
Earlier this week, the other two major credit rating agencies, Fitch and Moody's, reaffirmed their versions of AAA ratings after the end of the debt ceiling fight. Fitch also said it was keeping the US rating under review until the end of August.

 

[Rutashubanyuma]

This is just the beginning of the end of US global domination as we all knew it................................

 

[Hofstede]

Their political system is a virus eating them within. This group of people with prejudices towards Obama will eat US alive to make Obama a one term. If Americans reward them for this fracas by not re-electing Obama, we will see more US death in the future. If they reject them by electing Obama with landslide and returning back the congress to Dems, GOP and tea parties will behave and that would be good for US prosperity.

This downgrade itself is a political move!, not financial

 

[VoiceOfReason]

Remember

"When America Sneezes, the Rest of the World Catches Cold"...

Hakuna nchi itakayofurahia Uchumi wa Marekani kuendelea kushuka..., effects zake ni kubwa kwa nchi mbalimbali (America being one of the best consumers)

 

[ubun2]

Absolutely, this downgrade is politically motivated!! Actually this will get more Americans involved now in what their government is doing. Americans will get more proactive in voicing their disgust in many areas and will strive for a true and just democracy. This is a wake up call for ALL Americans who love their country to get involved & demand accountability from the officials they elected in office to do their jobs. Do not underestimate the spirit of America, its a spirit of justice & equality for all, a spirit of never giving up, of treading fearlessly into the future-America will innovate!

 

[Mtazamaji]

Remember

"When America Sneezes, the Rest of the World Catches Cold"...

Hakuna nchi itakayofurahia Uchumi wa Marekani kuendelea kushuka..., effects zake ni kubwa kwa nchi mbalimbali (America being one of the best consumers)

Hii statement ni too general. effect ni kubwa zaidi kwa nchi zilizoendelea na sio nchi zetu za third world.

Nimesoma China anasema the world need an new financial currency. Hao kina China, Japan na Eu ndio watadhurika. Kwa maana nyingine hiyo inaweza ikawa financiala revolutin na nafuu kwa nchi za kiafrika.

Sema tu we dont see na wataalamu wetu hawajaribu kutafuta opportunities wenzetu wanapopata matatizo. Sababu viongozi wetu wana mawazo ya kimatonya matonya tajiri akipata tatizo badala wachukue opportunity wao ni kusikitika kuwa hatutapa msaada.

 

[VoiceOfReason]

Hii statement ni too general. effect ni kubwa zaidi kwa nchi zilizoendelea na sio nchi zetu za third world.

Nimesoma China anasema the world need an new financial currency. Hao kina China, Japan na Eu ndio watadhurika. Kwa maana nyingine hiyo inaweza ikawa financiala revolutin na nafuu kwa nchi za kiafrika.

Sema tu we dont see na wataalamu wetu hawajaribu kutafuta opportunities wenzetu wanapopata matatizo. Sababu viongozi wetu wana mawazo ya kimatonya matonya tajiri akipata tatizo badala wachukue opportunity wao ni kusikitika kuwa hatutapa msaada.

Mkuu unafuu unatokea wapi na hiyo advantage utaichukua vipi...? Kumbuka hapa hatuongelei a major producer kwamba sasa sisi tutatoa products zetu zinunuliwe zaidi, tunaongelea a major consumer kwahiyo bidhaa hazitanunuliwa as much.. Of course effect haitakuwa kubwa sana kwa nchi zetu masikini kama nchi nyingine tajiri sababu sisi we are down already na shida ni kubwa na ni vigumu kuona difference sababu we are always suffering.

Ngoja nikupe mfano hivi unajua maua karibia yote yanayotumika UK yanatoka wapi? (jibu ni Kenya) na katika ile Global Economic Crisis iliyotokea hata mkulima wa Kenya alifeel the Pinch sababu hakuweza kuuza kama before...

Kuna jamaa yangu alikuwa mkandarasi lakini sababu makampuni mengi yalikuwa kwenye matatizo ya pesa na mikopo ikawa tabu kupatikana hata yeye kazi zilipungua.

Kwahiyo mkuu in this Globalization Times a healthy Economy kwa nchi zote ripple yake inasaidia kwa nchi zote.... (alafu hapo sijaweka panic factor am sure hata South Africa Stock Exchange lazima ilishuka kutokana na panic ya watu kwamba Uchumi utateteleka na Marekani amepiga Chafya)

Nina recommend kitabu The Commending Heights By Daniel Yergin (au Google uangalie documentary ya hicho kitabu) nadhani utakubaliana na mimi kwamba in these ages of Global Village we are really a Global Village

 

[Mtazamaji]

Mkuu unafuu unatokea wapi na hiyo advantage utaichukua vipi...? Kumbuka hapa hatuongelei a major producer kwamba sasa sisi tutatoa products zetu zinunuliwe zaidi, tunaongelea a major consumer kwahiyo bidhaa hazitanunuliwa as much.. Of course effect haitakuwa kubwa sana kwa nchi zetu masikini kama nchi nyingine tajiri sababu sisi we are down already na shida ni kubwa na ni vigumu kuona difference sababu we are always suffering.

Ngoja nikupe mfano hivi unajua maua karibia yote yanayotumika UK yanatoka wapi? (jibu ni Kenya) na katika ile Global Economic Crisis iliyotokea hata mkulima wa Kenya alifeel the Pinch sababu hakuweza kuuza kama before...

Kuna jamaa yangu alikuwa mkandarasi lakini sababu makampuni mengi yalikuwa kwenye matatizo ya pesa na mikopo ikawa tabu kupatikana hata yeye kazi zilipungua.

Kwahiyo mkuu in this Globalization Times a healthy Economy kwa nchi zote ripple yake inasaidia kwa nchi zote.... (alafu hapo sijaweka panic factor am sure hata South Africa Stock Exchange lazima ilishuka kutokana na panic ya watu kwamba Uchumi utateteleka na Marekani amepiga Chafya)

Nina recommend kitabu The Commending Heights By Daniel Yergin (au Google uangalie documentary ya hicho kitabu) nadhani utakubaliana na mimi kwamba in these ages of Global Village we are really a Global Village

Sasa consumer kwani hata kwa bishara kati ya sisi specifically Tanzania na marekani nani ni consumer. Tafuta figure utaelwa kua ingawa marekani ni cumsumer "globally" it does not apply to poor contries. Ndio maana nimesena maelezo yako ni general. Huu kwetu Africa marekani ni producer exporter tu

Nakubaliana na wewe ni we are in global village but we dont have much to loose zaidi we have much to gain . kama tungekuwa na watu wenye vichhwa. Katika hali hii sasa hivi Gold ndio inazidi safe saving zaidi ya dola. lakini hata Gold ikipnada bei maradufu katika hali ilivyo bado hatufadiki sababu mikataba tuliyoingia haiko flexible..........

Prosperity ya ya USA haisadii sana africa zaidi ya misaada. Mayy be China na Japan kwa hiyo hata kutetereka kwao kiuchumi ni hivyo hivyo. There is an oportunity. Hata china japo wanaathirika unaona wamependekeza opportunity moja ya kutafuta currnecy nyingine.

But Thanks kwa kitabu nitajaribu kukisoma

 

[Anheuser]

Remember

"When America Sneezes, the Rest of the World Catches Cold"...

Hakuna nchi itakayofurahia Uchumi wa Marekani kuendelea kushuka..., effects zake ni kubwa kwa nchi mbalimbali (America being one of the best consumers)

Sio kweli, uchumi wa Tanzania unaoneka uko stable kuliko wa Marekani. Hakuna cha threat of government shutdown, hakuna cha credit rating, hakuna cha roller coaster weekly job numbers, hakuna cha kurushana roho na Dow Jones average, hakuna cha recession. Sisi tunajijua ni masikini, tunajaribu kujenga nchi, uchumi wa Marekani ukikohoa hautuhusu.

 

[VoiceOfReason]

Sasa consumer kwani hata kwa bishara kati ya sisi specifically Tanzania na marekani nani ni consumer. Tafuta figure utaelwa kua ingawa marekani ni cumsumer "globally" it does not apply to poor contries. Ndio maana nimesena maelezo yako ni general. Huu kwetu Africa marekani ni producer exporter tu

Nakubaliana na wewe ni we are in global village but we dont have much to loose zaidi we have much to gain . kama tungekuwa na watu wenye vichhwa. Katika hali hii sasa hivi Gold ndio inazidi safe saving zaidi ya dola. lakini hata Gold ikipnada bei maradufu katika hali ilivyo bado hatufadiki sababu mikataba tuliyoingia haiko flexible..........

Prosperity ya ya USA haisadii sana africa zaidi ya misaada. Mayy be China na Japan kwa hiyo hata kutetereka kwao kiuchumi ni hivyo hivyo. There is an oportunity. Hata china japo wanaathirika unaona wamependekeza opportunity moja ya kutafuta currnecy nyingine.

But Thanks kwa kitabu nitajaribu kukisoma

Mkuu although tuna-consume finished products lakini tunahitaji kuuza our raw materials (kwahiyo tunahitaji competition ya wanunuzi from different areas na mmoja akiondoka demand itapungua hence low prices) our tourism industry inahitaji watalii waje (without money to waste na watu kuanza kubana matumizi na watalii watapungua).

Kuhusu wachina na Currency tena hao jamaa ndio sio wa kuamini kabisa wamekuwa wakicheza na currency yao kuhakikisha kwamba ipo chini ya dollar ili kuhakikisha bidhaa zao zinakuwa cheaper hivyo basi rahisi kwao ku-export bidhaa zao.

In short umasikini wetu sio sababu ya kwamba nchi nyingine ni tajiri bali ni uzembe wetu na upuuzi wetu wa kutokutumia resources zetu tuna kila kitu kwenye hii nchi ambacho kingeweza kutufanya tuwe tajiri whatever the outcomes..

Kuhusu Commanding Height kuna hii documentary You Tube zipo episode tatu ukiangalia zote its about six hours lakini ni very educative and informative ukimaliza hapo mkuu utakuwa una degree ya uchumi JF style
‪PBS Commanding Heights Ep1 The Battle of Ideas DivX6‬‏ - YouTube

 

[VoiceOfReason]

Sio kweli, uchumi wa Tanzania unaoneka uko stable kuliko wa Marekani. Hakuna cha threat of government shutdown, hakuna cha credit rating, hakuna cha roller coaster weekly job numbers, hakuna cha kurushana roho na Dow Jones average, hakuna cha recession. Sisi tunajijua ni masikini, tunajaribu kujenga nchi, uchumi wa Marekani ukikohoa hautuhusu.

Mkuu tatizo ni kwamba sisi ni masikini wa kutupwa kwahiyo hata tofauti itakuwa tabu kuiona sababu mtu ambae alikuwa anakula mlo mmoja kwa siku ataendelea kula mlo mmoja kwa siku, lakini yule aliyekuwa kule kwenye mbuga za wanyama yule mpishi ambae alikuwa anapata tips kwa watalii wengi kuja (wengine kutoka marekani) nadhani atafeel the pinch baada ya watalii kupungua au hata wakija badala ya kuacha tips watakuwa wanasmile pekee..

Tumeshafikia wakati kwamba hii dunia ni ndogo na kila kitu kina knock on effect. Tushukuru Mungu hatuna Stock exchange ya nguvu Bongo ama sivyo na yenyewe ingeshuka na watu wangeloose pesa zao za madafu

 

[Mkabera]

Mkuu tatizo ni kwamba sisi ni masikini wa kutupwa kwahiyo hata tofauti itakuwa tabu kuiona sababu mtu ambae alikuwa anakula mlo mmoja kwa siku ataendelea kula mlo mmoja kwa siku, lakini yule aliyekuwa kule kwenye mbuga za wanyama yule mpishi ambae alikuwa anapata tips kwa watalii wengi kuja (wengine kutoka marekani) nadhani atafeel the pinch baada ya watalii kupungua au hata wakija badala ya kuacha tips watakuwa wanasmile pekee..Tumeshafikia wakati kwamba hii dunia ni ndogo na kila kitu kina knock on effect. Tushukuru Mungu hatuna Stock exchange ya nguvu Bongo ama sivyo na yenyewe ingeshuka na watu wangeloose pesa zao za madafu

AMERIKA inajishughulisha na kila vita moja baada ya nyingine wa nguvu za matajiri wachache wa kiyahudi wanaonda Silaha au maslahi yao ya ki Israel na kuwatokomeza Wanachi wengi wa Kimarekani ambao wanaumia na kufa kwa ajili ya vitu visivyowahusu. Hii dharba inakuja . nCHI ZA Asia kam China, India zinaendelea kupanda kiuchumi NA MATOKEO NI Sasa China ni No.2 imeishaipita Japan. and India no.4 imeshaipita Uingereza (United kINGDOM). It is a matter of time before the world centre moves to East. Nchi nyingi zinaanza kufundisha watoto wao Kichina!Huyu Obama anajaribu kuwatengenezea mazuri lakini wanamzidi nguvu. Kweli waswahili walisema aliye panda hushuka na aliye juu mgojee chini!

 

[Bantugbro]

Tumeshafikia wakati kwamba hii dunia ni ndogo na kila kitu kina knock on effect.[/COLOR] Tushukuru Mungu hatuna Stock exchange ya nguvu Bongo ama sivyo na yenyewe ingeshuka na watu wangeloose pesa zao za madafu

Ukistaajabu ya Musa...

For a moment... who would ever thought that one day a Communist Party of China will rescue the Capitalism system in the west???

America and Europe are still in denial but as the truth sink-in nadhani watagundua kuwa wamekwisha, huwezi kutengeneza jeshi kubwa kupigana mavita yasio ya msingi kwa kutumia/kutegema pesa za walipa kodi wa China....