John MankoSome coding, politics, beer, art, and music. :)

S&P downgraded the United States government’s AAA rating [PDF], and rightly so.  Although S&P recommends increasing the debt ceiling, the solution is less government spending.   The debt ceiling is only part of the problem, though.  The other half is the debasing of the Dollar by the actions of the Federal Reserve.  In order to keep interest rates low, the Fed needs to increase the money supply, but putting more money into circulation devalues the Dollar.  This might seem like a great tactic to devalue the debt we owe to China (who hold 4.5T in Treasury Bonds), but it will kill the currency and collapse the economy via hyperinflation.   Read the rest of this entry »