Moody's will not downgrade US Treasury securities. US bonds are still basically risk-free and the risk free rate of return for all other markets will be based on this rate. The government will raise the debt ceiling, print more money, and (hopefully) balance the budget. I think we're going to see some significant inflation . The Fed will try and target inflation as best they can, but with the burden of the deficit the money supply will have to increase beyond the nominal anchor level. So where do you guys like to have your money in a market like this?
I often think about why the 90s were so great and why Clinton was such a great president. Two major things stand out:
1.) Clinton balanced the mother fucking budget. He at least came very close. Honestly, I can't think of anything more important than having a government surplus budget.
2.) He had a republican congress during his second term. Let's face it, the civilized world would basically have to fall apart for Obama not to get reelected. But, the newly appointed Republican congress might be able to work with Obama during his second term to bring about moderate liberalism, reminiscent of Bill Clinton. I think this would be a fantastic thing for our country and for Obama's presidency.
Obviously the Iraq war will be a big topic in 2012. Look, I think W was wrong about Iraq and WMDs. Call it bad intel, whatever. We probably shouldn't have invaded Iraq. It was stupid. There were better targets to invade than Iraq. But let's face the fucking facts: we've been there for over 10 years now. We've made a lot of enemies in the region, no doubt. It is absolutely critical for the well-being of our nation and the well-being of our planet to remain vigilant, present, and strong in Iraq. I have few doubts that eventually, be it 10 more years from now, Iraq will be a thriving new democracy. I had faculty members from my university's accounting program who visited Jordan and Iraq to help them develop accounting systems and standards for more competent financial reporting. This was UNHEARD OF as little as 5 years ago. We need to see Iraq and the middle east through, however long it takes.
edit: drunk mother fucker
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