Deflecting Attention From The Real Question
Bill Buckler, author of The Privateer
On April 26, the US ratings agency S&P cut their rating for Spanish sovereign debt by two notches. S&P justified this downgrade in a three-page press release. As usual, the “concerns” which led to this downgrade have been echoed since the very beginning of the “European” debt crisis more than two years ago. As usual, they are pertinent as they apply to Spain. They are equally pertinent as they apply to the other nations in the world which are up against the utmost limits of credit expansion and therefore of the issuance of yet more reams of paper money. There is no nation in the world which is NOT up against those limits. But like its two equivalents, S&P is a “US based” ratings agency.
The US is now about to enter fully-fledged “election mode”. With only two candidates left in the “race” for the Republican nomination – only one according to the mainstream media, but more on that [below] – the “issues” at stake in the upcoming election are now being very carefully tailored for an increasingly unruly domestic US political audience. A less polite way of phrasing this is that the spin is becoming dizzying. The foremost task of preparing for the November vote is to maintain the illusion that any and all economic or financial “hiccups” which might affect the US in the next six months are not home gown. There is one “issue” in which Mr Obama, Mr Bernanke, Mr Geithner and Mr Romney are in total agreement. That “issue” is the source of the economic malaise still affecting the US. The source is NOT the US government, nor the US central bank, nor the US banking system. Above all, it is NOT the debt-based and government guaranteed US Dollar.