USA Going to Get Downgraded-Karl Denninger

Financial analyst Karl Denninger says, “If you keep raising the debt ceiling willy nilly, you’re going to get downgraded.” Denninger thinks the latest talks in Washington will only kick the fiscal can down the road. He says, “The truth of what we have to do is still politically impossible.” Denninger contends, “All you are seeing now is the tap dance around the fact we have to accept a 7, 8 maybe 10 to 15% fiscal contraction in GDP in order to come back into balance.” Denninger says the sooner you take the hit, the better it will be because “the damage you take today is always less than the damage you will take if you kick the can and wait until tomorrow.” Don’t expect politicians to do the right thing–yet. Denninger says, “There is no stomach to put their jobs on the line . . . We need statesmen who will say I will get fired over this. . . . That’s the price the country has to pay.” Join Greg Hunter as he goes One-on-One with Karl Denninger.

SD Bullion

Comments

  1. We all know who gets to chose the US credit rating… Remember these are government mandated agencies (certain funds can only invest in rated securities and bonds).   Their analysis is basically a worthless drain on the economy…

    Egan-Jones won’t be able to downgrade:
    http://www.zerohedge.com/news/2013-01-22/sec-bars-egan-jones-rating-us-and-other-governments-18-months

  2. The Government isn’t going to do anything about the debt ceiling and Congress will fold and all those Politicians don’t care because they will have their pensions to fall on when they leave. Hang Them All Except a Few, Chop Their Heads Off.
    So Much For Representing The People.

  3. It is time for a total reset, start recall election petitions, do whatever it takes to put them on notice their job is on the line.

  4. My favorite Diglinger quote: You can’t eat gold. Buy Lead.
    Oh crap. You can’t eat lead either. And now Mr. O is going after his lead. LOL

  5. Ha ha.  Go Latvia.  They have been promising to adopt their poor cousin the Euro since 08.  Now they are promising by 2014.  That’s a good can to kick down the road actually,  

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