S&P cuts UK credit outlook - Pound falls...
online.wsj.com
The Wall StreetJournal Online
FOREIGN EXCHANGE
MAY 21, 2009, 7:30 A.M. ET
LONDON -- Buyers of the pound faced an unexpected reversal of
fortunes Thursday, after ratings agency Standard & Poor's
Corp. lowered its credit-rating outlook for the U.K.
to "negative" from "stable."
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Intersting numbers below for those who think comparisons
to the Weimar era are exaggerated...
sliderontheblack.com
From Martin Hutchinson:
"The really chilling parallel is that the United States,
Britain and Japan have now taken to funding their budget
deficits through seigniorage. In the United States, the Fed is
buying $300 billion worth of U.S. Treasury bonds (T-bonds)
over a six-month period, a rate of $600 billion per annum,
15% of federal spending of $4 trillion.
In Britain, the Bank of England (BOE) is buying 75 billion
pounds of gilts over three months. That’s 300 billion pounds
per annum, 65% of British government spending of 454 billion
pounds.
Thus, while the United States is approaching Weimar German
policy (50% of spending) quite rapidly, Britain has already
overtaken it!"
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And right on cue, they hammered gold down $6 on the S&P news.
Puh-leeze....
And another terrible jobs report.
Lots of holes in the global financial dike and only so
many fingers.
Let's see if they continue to prop up the DOW, or cut and
run leaving Main Street with the bag.
Santelli dropping reality bombs on CNBC right now...
Carl Q wetting his pants because Rick is off script <vbg>.
Santelli basically came out and said the market was propped up,
and does not reflect the reality of the economy.
Bingo!
The DOW's getting heavier the further they try to push it
up hill against reality...
Message 25619884
SOTB
PS: Anyone else notice Jesse Ventura's reappearance on
the national stage? Hitting the talk show circuit from
Hannity to Howard Stern.
Jesse testing the 2012 waters?
Let's not just clean house, let's kick a little ass.
Let them make their lists.
And we shall make ours.
It's payback time in 2012 people.
And we shall not forgive, or forget. |
