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13-Jul-11 News -- EU attacks ratings agencies, and moves towards 'selective defaults'

EU approves 'Selective Default' for Greece

** 13-Jul-11 News -- EU attacks ratings agencies, and moves towards 'selective defaults'
** http://www.generationaldynamics.com/cgi ... b#e110713b


** 13-Jul-11 World View -- Afghan president's brother assassinated
** http://www.generationaldynamics.com/cgi ... 13#e110713


UN Security Council condemns Syria for embassy attacks


Contents:
"EU attacks ratings agencies, and moves towards 'selective defaults'"
"Declaring war on ratings agencies"
"Approval for 'Selective Default' for Greece"

### World View -- Afghan president's brother assassinated
"Assassination of Karzai's brother creates Afghanistan power vacuum"
"UN Security Council condemns Syria for embassy attacks"
"Turkey holds talks with Iran on Syrian unrest"
"France calls for negotiations with Libya's Gaddafi"

Keys:
Generational Dynamics, Brussels, Greece, Moody's, S&P ratings,
Italy, Ireland, Portugal, selective default

Keys:
Generational Dynamics, Afghanistan, Ahmad Wali Karzai,
Bashar Ja'afari, Syria, Turkey, Iran,
Ahmet Davutoglu, Libya, Muammar Gaddafi,
Mahmoud Ahmadinejad

Cartoon characters is a good description. We should send them Obama, who the other day said we must pay our debts while begging for a couple more trillion to borrow. Do we actually elect people this stupid or this big a liar to the Presidency of the US?

I read that Italy's auction of 2 year debt was a success, better than expected. Of course it was all sold to the ECB, which seems to be the dumping ground for junk debt around the world. They might as well buy up all the CDO's in the US so the world will still have a currency to pass around. These people don't understand the problem or they are too busy looting the system to stop the gravy train before it falls off the cliff. Government officials in the US are no better than the tinhorns we used to talk about in South America.

One thing you said was 100% true, that the Congress wouldn't be able to solve anything. I read where the $2 trillion in cuts Obama was talking about included $2 billion for the next fiscal year. He might as well bring a glass of water to the table while promising the Mississippi River, as this in 1% of what would amount to the average spending cut over the next 10 years to reach $2 trillion. In the meantime, the US debt moves rapidly to 100% of GDP and over. Also, Obama seems to have forgotten about the Social Security trust fund the Democrats have boasted about for the past 75 years. Of course, it never existed, but was merely a source for more money for the government to blow on pork.

The SS trust fund is approximately two trillion in US treasury bonds owned by the SSA. Would a pension fund with two trillion in US bonds be considered "nonexistant"?

The entirety of the debate about the SS "crisis" is about how much to cut benefits so the govt will never (and I do mean never) redeem those bonds. By not redeeming the bonds, they effectively reduce US govt debt by that two trillion, as the interest paid is paid from one hand of the govt to the other, thereby not showing at all on the books using US govt accounting as it has existed since Reagan.

This is of course a selective default on a special class of bonds, and should be recognized as such.