Euro Plunges On Fitch Double Tap, Comments From Merkel

In another theater of the absurd example, there are analysts out there who are actually claiming they didn't see this coming:  the downgrading of Spanish and Italian sovereign debt by the credit ratings agencies.  Really? 

http://www.zerohedge.com/news/euro-plunges-fitch-double-tap-comments-merkel

http://www.zerohedge.com/news/and-spain-fitch-downgrades-spain-aa-aa-two-notch-cut-outlook-negative 

http://www.zerohedge.com/news/fitch-downgrades-italy-outlook-negative

S&P Cuts AAA Ratings on Thousands of Municipal Bonds After U.S. Downgrade

http://www.bloomberg.com/news/2011-08-07/muni-market-prepares-for-loss-of-aaa-ratings-as-s-p-downgrades-u-s-credit.html

Wall St. takes a dive on first day after downgrade

As usual, lost in the headlines of the stock market crash is gold surging to a new all-time high again. 

http://finance.yahoo.com/news/Wall-St-takes-a-dive-on-first-apf-1960115615.html?x=0

S&P Explains Why The "$2 Trillion Error" Is Irrelevant

Shoot the messenger. 

http://www.zerohedge.com/news/sp-explains-why-2-trillion-error-irrelevant

Moody's warns it may downgrade US credit rating

http://finance.yahoo.com/news/Moodys-warns-it-may-downgrade-apf-1159974886.html?x=0&sec=topStories&pos=main&asset=&ccode=

European Credit Agency Downgrades US Credit Rating from AAA to AA

http://translate.google.com/translate?hl=en&sl=de&tl=en&u=http%3A%2F%2Fwww.godmode-trader.de%2Fnachricht%2FFeri-stuft-die-Bonitaet-der-USA-herab%2Ca2560303.html&anno=2

Translation:  The Feri Rating & Research AG downgraded the credit rating for the United States from AAA to AA.

S&P downgrades outlook on US debt to negative--in Chinese

http://www.youtube.com/watch?v=rc96k58rkX4&feature=player_embedded

The worst advice I’ve seen in years

http://www.sovereignman.com/expat/the-worst-advice-ive-seen-in-years

Putting its money where its mouth is, Dagong has a long-standing, negative outlook on US debt that doesn’t pull any punches. From its November 2010 report:

“In essence the depreciation of the U.S. dollar adopted by the U.S. government indicates that its solvency is on the brink of collapse, therefore it wants to cut its debt through the act of devaluation with the national will; such a move has severely harmed the interests of creditors.”

Following suit, S&P stunned financial markets this morning by revising its US outlook to ‘negative’, citing politicians’ inability to address medium-term and long-term challenges.

In total contrast, US News and World Report published an article a few days ago entitled Why you should buy U.S. Treasuries,” which amounts to the worst advice I’ve seen in years. 

The article is devoid of any clear analysis which could support loaning our hard-earned savings to the most indebted nation in the history of the world in a rapidly depreciating currency at rates which have little chance of keeping up with inflation; instead, the author relies solely on patriotism:

“It has always been a bad idea to bet against America and our ability to prosper even against overwhelming difficulties. America will cut back its spending, innovate, and pay off its debts. We will earn our way out. It’s just how we do it…”

A more accurate statement would have been, “that’s how we used to do it…” Fact is, America’s economic problems are deep-seeded and neither political party can put forth a viable strategy for righting the ship. Even S&P is starting to realize this.

This is essentially the same strategy the Japanese government has executed on its own citizens for over two decades:  jam Japanese government bonds down their throats, and encourage them to accept 0% returns on their hard-earned savings in exchange for feelings of patriotism.

Gold Explodes On S&P Downgrade Warning

http://www.zerohedge.com/article/gold-explodes-sp-downgrade-warning

Who would have thunk that the one beneficiary of an insolvent US (with both bonds and stock futures plunging) would be gold. Oh wait...

Moody's May Cut US Rating on Tax Package

I recall Treasury Secretary Geithner declaring US Treasuries being downgraded from a AAA credit rating being "impossible."  Well, the unthinkable is now tangible, according to Moody's.

http://www.cnbc.com/id/40641123

Greece, the Euro, and supermodels

The bond vigilantes are attacking Greek bonds and the Euro, as further credit downgrades are inevitable.

Gisele Bundchen should consider getting paid in gold, instead of Euros.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aUdDmoYyZhdY

Supermodels should stick to modeling, and leave speculation to the foreign currency traders. While I agree with the USDollar continuing it's decades-long decline, the Euro will tank even further from the EU fracturing.