Those at the S&P are sending a message to the administration to clean up the fiscal mess or they will downgrade US sovereign debt even more.
Fast Forward to today
Moody’s Investors Service put the U.S. under review for a credit rating downgrade as talks to raise the government’s $14.3 trillion debt limit stall, adding to concern that political gridlock will lead to a default.
The Aaa ratings of financial institutions directly linked to the U.S. government, including Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Federal Farm Credit Banks, were also put on review for cuts, Moody’s said in a statement today.
The U.S., rated Aaa since 1917, was put on review for the first time since 1995 on concern the debt limit will not be raised in time to prevent a missed payment of interest or principal on outstanding bonds and notes even though the risk remains low, Moody’s said. The rating would likely be reduced to the Aa range and there is no assurance that Moody’s would return its top rating even if a default is quickly cured.
The effects of this downgrade are quiet visible with Gold shooting up to new record highs this week.
Basically stated, America's financial empire is on it's last leg.
There are several indicators that I keep an eye on to tell me when things are "volatile" and to prepare for "Bank Day" or a Bank Holiday. One of those is the US Dollar Index which is currently sitting at 75.11.
Until recently the dollar has been declining very steadily now since the beginning of the new year in Jan 11.
But now with what is taking place in Europe and the soon demise of the Euro, people are rushing to the only "stable" item, that being the dollar.
Now just for your information, the dollar is not stable and those who put their trust in it will be sorry.
With this rush to the dollar, we are going to see silver prices start to drop. This is not a bad thing, it is a good thing in that it opens another window for people to purchase silver.
I am not sure how far it will drop, but we may even see $22.00 an ounce, at least this is what has been speculated out there with the silver pundents.
I say all of this so that those of you who are buying silver, to start setting aside some $$$ so that when the price does drop, you are able to take advantage of this.
This week there was news from the FED with the hinting of a QEIII. This is not good at all and will further destroy the dollar.
In talks going on regarding the debt ceiling, it is all a dog and pony show. The republicans will cave like always and this will send a message to the world that we dont care about paying back our debt. Couple this with QEIII and this nation will soon be up the creek without a paddle.
Here is the long and short of it...
- QE3 is coming.
- The Debt Ceiling will be raised.
- The Dollar is headed down once again.
- There will be more financial crises.
- China is continuing to by real assets and opening up new precious metal markets.
- And I seriously believe that the best place to be is in physical silver.
By Ray Gano
Survive The Coming Storm By Ray Gano
The demise of the dollar is looming, poised to die in flaming downward spiral. When it hits bottom, this nation will fall into chaos like she has never seen before, plunging into third -world status. Food, gas, and most everything else will become drastically more expensive, coupled with a rise in crime. The "New Normal" for our nation will be upon us as these changes take place.
Hollywood has painted an apocalyptic world, filled with mutant "Mad Max" biker gangs and zombies as this nation's future.
What is sad is that the masses have bought into this false idea.
In this book the author, Ray Gano, takes examples from history as well as from a Christian biblical standpoint showing what you can do to prepare. Is your family prepared to Survive The Coming Storm.
If you would like to get an autographed copy, purchase using the following links
If you live in the US, ($20.00) please use the following link - http://tinyurl.com/STCS-US-ORDER
If you live outside the US,($25.00) please use the following link - http://tinyurl.com/STCS-INTL-ORDER