The Washington Times reports:
Liberal firebrand Michael Moore called on President Obama to respond to the U.S. credit downgrade by arresting the leaders of the credit-ratings agencies.
On his Twitter feed Monday, the Oscar-winning film director also blamed the 2008 economic collapse on Standard & Poor’s — apparently because it and other credit-ratings agencies did not downgrade mortgage-based bonds, which encouraged the housing bubble and let it spread throughout the economy.
“Pres Obama, show some guts & arrest the CEO of Standard & Poors. These criminals brought down the economy in 2008& now they will do it again,” Mr. Moore wrote.
I have to wonder what kind of crack Moore is smoking. Asking the same person who signed off on hundreds of billions in “stimulus” to arrest the people who are pointing out the economic disaster that results from such policies seems a bit strange even for Moore. Isn’t Moore aware that Goldman Sachs was Obama’s second largest corporate donor and that Obama took in $3,602,317 from 5 major commercial banks during his last election campaign?
Does the guy actually blame credit rating agencies for an economic disaster caused by artificially low interest rates, federally imposed moral hazards, credit expansion, rampant speculation fueled by monetary policy, and crony capitalist regulations?
Last time I checked, all Standard & Poor can do is either point out problems or ignore them. They can’t actually cause them to come into existence in the first place. Moore does have a point that the credit rating agencies helped to facilitate the housing Ponzi by ignoring the obvious problems in the mortgage markets, but demanding they be arrested for finally pointing out the current fiscal insanity of our government strikes me as something we should expect to see from a Banana Republic, not a first world “economically free” nation. Arresting those who are the bearers of bad news is typical fare for communist dictatorships.
To me, S & P’s recent downgrade of the US sovereign debt from AAA to AA+ is facilitating fraud in the same manner as they did in the housing bubble. If S & P executives are to be arrested for helping to facilitate fraud, it should not be because they took the US down one notch, but because they haven’t taken it down far enough!
Any nation that owes the equivalent of 100% of its GDP is bound to default. Of course, the US is faaaaaaaaaaaar more in the hole than just 14 trillion if we include all the unfunded liabilities that are held off the books. Depending on how one calculates unfunded future liabilities, such as Medicare and Socialist Security, the US debt exceeds 100 trillion.
The US treasury markets are in the world’s biggest bubble and have been for some time. The dollar itself is in a bubble that has been busily inflating itself since Roosevelt confiscated American citizens’ gold and forbid dollar redemptions in gold specie. This act allowed the federal government to issue more notes than they had in gold reserves, which in effect was a default on our debts since creditors were paid back with money that had less value than they lent.
As the Federal Reserve’s balance sheet expands with Treasury debt, this too is an act of default. This is nothing more than printing money. Government’s don’t default by declaring bankruptcy, they default by devaluing their currency – which the US is in the midst of doing right now. The AA+ rating is a joke, the US should have a “C” credit rating as of this moment.
Michael Moore should stop blaming the messenger for the message and start blaming the people who put the US in to this fiscal position in the first place.