Something for a weekend. A variant on the song of the First Great Depression, Buddy Can You Spare a Dime. It seemed timely in regard to the terrible economic news that came out this week:
1. AA- -Credit rating firm reduced the United States Credit Rating to AA-. Here is why
The firm said that while the program should boost equity markets, issuing additional currency and depressing interest rates through purchasing mortgage-backed securities will hurt the value of the U.S. dollar and cause a painful increase in commodity prices.
The ratio of U.S. debt to gross domestic product soared to 104% in recent months from 66% in 2006 and will likely increase to 110% in a year, the firm said. By comparison, Spain’s debt-to-GDP stands at 68.5%.
3. Industrial Production-Down-US industrial production fell 1.2% in August pointing to a slowing economy.
4. Unemployment-Fed analysts estimate that unemployment will not reach 7% until 2014.
The bottom line is that we have a pig of an economy, and that Obama’s policies have made it worse. It is not going to recover as long as he is President.