How Many Times Does S&P Have To Downgrade Japan's Sovereign "Debt" Rating ... Before People Quit Listening?

   (Commentary posted by Roger Erickson)




There's growing suspicion that S&P actually upgrades Sovereign "Debt" ratings periodically, just so they'll have something to downgrade when needed.

Does that remind you of recent interest in some quasi Federal institution?

S&P downgrades Japan's sovereign credit rating

Again? How many times is that now?

If a philosophical question lurks in a topic, but there's no media storm to hype it, is it still hidden from the bulk of news readers?

After all, what, exactly, does a Sovereign Fiat rating mean? Do ratings mean that all fiat is created equal, but some are rated more/less equal than others? On demand? As needed? Needed by whom, and for what?

Has the electorate of Japan ever skimped on fiat, because of someone else's rating?

On second thought, don't answer that. The answer might reveal more complications ... that no one will admit hearing of. :(

"I asked around, and everyone's out of paradigm."

An Autonomous, Sovereign Nation? What a NOVEL thought!

   (Commentary posted by Roger Erickson)

Sergei Glazyev's ambitious plan for muting sanctions is basically to make Russia autonomous

An autonomous, sovereign nation? What a NOVEL thought!

Why, with thoughts like that, they could even express fiat!!! :)

Maybe some Russians read Warren Mosler's blog, and understand at least parts of it better than the gold-std zombies at ZeroHedge do.

According to Russian newspaper Vedomosti, Russian presidential adviser Sergei Glazyev proposed 15 measures to protect Russia's economy if more US sanctions are imposed. Some of the notable ones are listed here. 

Russia should withdraw all assets, accounts in dollars, euros from NATO countries to neutral ones 

Russia should start selling NATO member sovereign bonds before Russia’s foreign-currency accounts are frozen 

Central bank should reduce dollar assets, sell sovereign bonds of countries that support sanctions 

Russia should limit commercial banks’ FX assets to prevent speculation on ruble, capital outflows 

Central bank should increase money supply so that state cos., banks may refinance foreign loans 

Russia should use national currencies in trade with customs Union members, other non-dollar, non-euro partners

Sergei Glazyev - a left leaning economist

ZeroHedge Spews About Russia - Comments are as entertaining as always.

Multinationals yawn about G7/Russia competition over Ukraine

As contingency analysts say, this whole situation seems "fluid." Anything can still happen. 

Just In Case You Thought Any Sanity Was Prevailing Here In DC

Commentary by Roger Erickson

Another Boehnheaded move?

"House Speaker John Boehner (R-OH) pushed back this week against White House demands for no-frills legislation on raising the federal borrowing cap and instead called for another round of spending cuts beyond the sequester as part of any agreement to raise the debt limit."

This has gone far beyond comical, to the absurd.

Can't spend more unless they agree to spend less? (In THEIR semantics anyway? Let's take to calling 'em semantricks?)  In other words, if we're gonna leverage more fiat, we have to reduce our fiat. Got that?

WhatEVER!

They should all just go home, and take their idea of fiat with them. No one will notice anything except less hot air and more common sense.

And in case there was any confusion about the confusion ...

"GOP aides said the speaker was affirming the “Boehner rule,” a framework he set in the last Congress that required spending cuts to match any debt limit increase. But Boehner also focused on a long-term approach to spending reductions, suggesting Republicans also will seek an overhaul of entitlement programs as part of any fiscal talks."

Can someone please ask these Boehnheads to at least define their terms?
  What constitutes "spending" to them?
  What constitutes "debt" to them?
  Why are their spending cuts equivalent (in their minds) to increases in "debt?"

A dictionary of Boehner terms is called for.  Fiat currency operations aren't rocket science, but apparently, they do involve Boehn-surgery.

ps: Isn't a sovereign country with it's own currency entitled to exercise fiat? What else are citizens supposed to do? Sit and twiddle their thumbs - between no-child-left-with-a-job tests? Is that how we'll maintain our Output Gap?

We've arrived back at the politicians calling card: "...Have Fiat, Won't Use It..."