Thursday, July 28, 2011

The Republicans gave investors to 'entertain' a movement away from the US to 'downgrade its reputation' if not its credit rating.

This news is not about the USA bonds, it is about Australian bonds.

While Speaker Boner is soliciting votes for his bill, it is already July 29th and a new trading day in Australia.

Aust bonds climbing on US default fears (click title to entry - thank you)

July 29, 2011 - 9:34AM
...Investors are flocking to the relative safety of Australian bonds, amid a looming August 2 deadline which could see the US default on its loans, should its debt limit not be raised by the government.
At 0830 AEST on Friday, the September 10-year bond futures contract was trading at 95.110 (implying a yield of 4.890 per cent), up from 95.090 (4.910 per cent) on Thursday.
The September three-year bond futures contract was at 95.490 (4.510 per cent), up from 95.480 (4.520 per cent).

By 0915 AEST, bonds had risen further with the 10-year contract reaching 95.145 (4.855 per cent) and the three-year contract at 95.530 (4.470 per cent)....

..."Even though that might involve an eventual (credit rating) downgrade of the US, I think everyone's more concerned about what that might mean for global market sentiment."...

This is Sarah Payne, another murdered child exploited by Murdoch's "News of the World." Is the list endless?

...Former News of the World editor Rebekah Brooks, (click title to entry - thank you) who became close friends with Ms Payne during the paper’s campaign, said the latest allegations were "abhorrent".
It is believed that the evidence found in Mulcaire’s files relates to a phone given to Ms Payne by the News of the World so she could contact her supporters, the Guardian reported.

Brooks said in a statement: "For the benefit of the campaign for Sarah’s Law, the News of the World have provided Sara with a mobile telephone for the last 11 years. It was not a personal gift....

For 11 years this child's mother had a phone to run a campaign to bring about a protection law provided by News of the World.  And for 11 years the media service could move freely into the phone and out to find out what was going on.  I doubt the mother agreed to any of it.  Nothing like desecrating a dead child's memory.  Is there anyone alive that can absolutely tolerate the Murdoch Media network?  There is just some morality that should never be allowed to exist in any form or affiliation.

The Speaker of the House might try offering to hold the vote for his bill in the Chapel. It may be where the caucus has decided to wait this out.

Republican (click title to entry - thank you) Conference Chairman Jeb Hensarling (R) of Texas (left) and Rep. Mike Pence (R) of Indiana walk from House Speaker John Boehner's office at the Capitol as the scheduled vote on Boehner's debt-ceiling bill is delayed in Washington Thursday.
J. Scott Applewhite/AP

I chose the Christian Science Monitor article because they have it more correct.  The Speaker is determined to pass his bill.  I sincerely don't believe it is going to happen.  I am sure President Obama has readied an Executive Order in case this division of the House Republicans continues.

I have never witnessed such brutal treatment of a House Speaker.  The longer the delay goes on the longer it is going to be.  I sincerely believe the Republicans are committed to their outcomes.  I also believe it is media driven by the Right Wing media.  Perhaps, if the Speaker would address the party on FOX there might be more support for the bill and things would turn around for him.  Hideous as it is, they have allowed Murdoch to be their king maker and Mike Pense openly thanked and praised Hannity after the 2010 elections to the point of nausea.  When one sells their soul to the devil there is dearly nothing a prayer can do to save you.  I could not be more serious.

…“If this were a parliamentary system, (click title to entry - thank you)  this would have been the equivalent of a no confidence vote,” says Stan Collender, a longtime federal budget analyst and partner at Qorvis Communications in Washington….

The House Republicans can't seem to get their minds around the issue that it was this Senate that voted down the President's Budget unanimously.  I don't know why they believe they are so far apart on anything that concerns the country's sovereign debt.  The differences occur when it is the citizens of the country vs Wall Street and the wealthy as a choice to DEBT REFORM.  Why is it that people of faith, and proclaimed abiding faith have a difficult time discerning the decision about that?

President Clinton never was threatened with a credit status downgrade,he never signed a pledge, he never sacrificed the well being of the American people and he never had headlines like this.

U.S. Treasuries weaken as debt, budget uncertainty persists (click title to entry - thank you)

11:39 28/07/2011
MOSCOW, July 28 (RIA Novosti)

The price of benchmark 10-year U.S. Treasuries edged down on Wednesday and demand at an auction to sell five-year bonds was low, as Congress failed to agree a deal on state debt increase and the budget deficit.

The 10-year paper yield rose six basis points to 3.01 percent. Bonds with a 3.125 percent coupon became 0.25 bp cheaper at 101.22 percent.

The U.S. Finance Ministry sold $35 billion worth of Treasuries at an auction where demand exceeded supply more than twice over, but was lower than at the last four sales.
The U.S. is on the brink of a default on its Treasuries - a previously unthinkable occurence - on August 2, unless Congress raises the ceiling for government borrowing. But congressmen link widening the debt limit with cutting the budget deficit, an issue on which Republicans and Democrats differ strongly....

The bottom line to all this is that the Majority Republican House has ruined the credibility and accountability of the Untied States of America.  They pledge their allegience to Wall Street rather than the country and they are the only ones accountable for the financial and fiscal emergency now facing the USA.

Click here for pie graph of debt distribution (click here) and how the interest is paid.  To most people 10 year Notes or T-Notes are unfamiliar jargon, but, in this graph it is noteworthy to realize that is the way the majority of the debt is financed.

This is an example from Wikipedia as to what T-Notes are and how they actually deliver on payment over ten years.  It is fairly simple and straight forward as to how the USA uses borrowed money to pay bills.  

Treasury notes (or T-Notes) mature in one to ten years. They have a coupon payment every six months, and are commonly issued with maturities dates between 1 to 10 years, with denominations of $1,000. In the basic transaction, one buys a "$1,000" T-Note for say, $950, collects interest over 10 years of say, 3% per year, which comes to $30 yearly, and at the end of the 10 years cashes it in for $1000. So, $950 over the course of 10 years becomes $1300.

This is a second accounting of the same auction discussed in Ria Novosti, a Russia newspaper. This is from Reuters.

NEW YORK, July 27 (Reuters) - The U.S. Treasury sold $35 billion worth (click here) of five-year notes on Wednesday in a lackluster auction, with foreign demand hitting a five-month low as time
runs short for the government to raise the national debt limit.

The auction, the second of this week's three offerings totaling $99 billion, extended a pattern of soft interest from overseas being offset by increasingly robust demand from large
domestic investors.

 The rising domestic participation suggests some investors, at least, see no alternative to U.S. government bonds even in the face of a default or possible ratings downgrade. While not stellar, the auction was by no means a disaster, and the Treasury market only added modestly to earlier losses. Thursday's $29 billion auction of seven-year debt will end the week's offerings. For more, see [US/]...

This reporting about the US Treasury auction in July 27, 2011 is a realization that the decline in the interest in US Treasury Notes has already begun even before any downgrading.

The downgrading will cause less interest, but, will not eliminate the purchase of these form of securities in the financial markets.  What a downgrading means is that the interest paid on these notes will increase to investors and cost the USA citizen more money to pay.

This is a clear indication the Republican Caucus of the House of Representatives cares very little about the well being of the average citizen and prefer to keep their wealth in order to invest in commodities that help finance the USA debt such as foreign oil exporters.  Oh, yes.  See there is a conflict of interest with Republicans.  They can disregard any downgrading as their cronies don't really see it as a measure of USA sovereignty so much as a change in strategy for their investments in the market place.  Follow?  The Republicans and their cronies don't have anything at stake here.  Nothing.  They can pick up their chips and play elsewhere or better yet continue to invest in the Treasury Notes and receive higher interest.  See, the reason President Obama is upset up all this is because he knows the Republicans nearly prefer to have the USA default for reasons of higher income to their cronies and themselves while causing hardship to the Middle Class and higher incidence of poverty.

The debate by Republicans is sincerely void of any loyalty to the USA, so much as loyalty to Wall Street.  Republicans nearly prefer to have the USA rated with a B or C rating before sincerely showing concern.  To them our Treasury Notes are not so much about sovereignty, but, of where does one place their money to earn money.

Rarely does anyone bring up the reason why oil and gas are the primary forms of energy in the USA.  One of the reasons is not just that the USA is dependent, it is because the USA is 'secured' by that dependence.  Oil exporters are the third major holder of USA debt.  So, the USA is not necessarily resolved to change that so much as support their debt holders.  It is why most environmentalists sincerely don't understand the argument to "Drill Here, Drill Now."  They actually believe the drilling is for domestic use, no different than hydraulic fracturing to secure gas.  None of that is going to make a difference to the USA as LNG (Liquefied Natural Gas) is being transported (adding the CO2 component to the LNG) to other countries such as India.  The offshore oil in the East and West Coast waters isn't really significant.  It is a very minor amount that will never sincerely serve as a way to reduce USA dependency because new drivers are added to the roads of the USA everyday in Motor Vehicle Agencies across the country.  The USA is dependent on oil and gas to support the holders of debt and according to Republicans that should happen rather than 'Go Green.'
Unfortunately, Treasury Secretary Geithner decided to allow more time three months ago to assist lawmakers, primarily in the House, to come to terms with what a National Debt Ceiling is and how it has to be treated to continue the sovereignty of the USA without any assault including the value of its currency and the esteem of its Treasury Notes.  He thought it would be helpful so that calamities that occurred on July 27th would not occur.  The Republicans refused to acknowledge their responsibility within that time limit so much as viewing it  as an inconvenience to the length of time before default and more time to 'play' political games full of nonsense.  So, while Joe What's His Name in the House BELIEVES he knows there is nothing to worry about regarding August 2nd, he is DEFINATELY "W"rong when it comes to the well being of the Middle Class and Poor of the USA.



DO NOT, elect Republicans to government at the federal level again !!!!!!!