Moody’s Downgrades Obama Administration

Moody’s Downgrades Obama Administration

By Duke Camel and Michael J. Monroe – Jun 22, 2012

Moody’s Government Ratings Service downgraded the Obama Administration to “junk” status with the post-Fast & Furious revelation that actual U.S. government fiscal liabilities are not merely the $50,100 for each man, woman, and child in America, but may be far higher–and worse–than acknowledged.

The most recent estimate for the difference between the net present value of federal government liabilities and the net present value of future federal revenues is $200 trillion, nearly 13 times the debt as stated by the US Treasury. Notice that these figures, too, are incomplete, since they omit the unfunded liabilities of state and local governments, which are estimated to be around $38 trillion.

While foreign and domestic financial markets reacted with alarm, the Administration shrugged the assessment off. White House spokesman Jay Carney said, “We disagree with the Moody’s assessment. The Fed has a plan to deflate the value of this contingent liability to get it to a manageable level. That, in conjunction with the President’s pending Executive Order to increase tax rates for millionaires and billionaires earning over $250,000 per household, means there’s really nothing to worry about. However, the do-nothing Congress has refused to support the President’s plan for increased borrowing for more public sector and green jobs which we know from economic experts, will more than pay for themselves.”

Enrique Van Gogh, lead ECB economist and former monetary adviser to French President Francois Mitterrand said, “While this situation in America is regrettable, we’re in no position to offer a bailout of either money or leadership. Really, our political leaders are far beyond tapped out… actually, I think we’re really all in way over our heads. Could the U.S. ask China to borrow some money? And some leadership?” Substituting Chinese control for U.S. sovereignty is a well-worn suggestion advocated by unpopular New York Times writer Thomas Friedman and one other.

Shares of the nine massive federal programs affected by yesterday’s action, Social Security, Medicare, Medicaid, Food Stamps, Fannie Mae, Freddie Mac, Government Motors, The Affordable Care Act Holding Company, and Broken States America all collapsed to the lowest monetary and leadership valuations in more than seventy years, according to data compiled by Bloomberg.

“The ratings agencies like Moody’s are looking for a raison d’etre in the face of our self-evident leadership failure,” said David Zippo, chief market strategist at The Jeffersons & Co. in an interview on Michael Bloomberg Television’s I’ll Tell You What’s Good For You. “But I don’t think the ratings are that big a concern unless you work in the private sector and support the government.”

“The country is worse today than just three years ago,” echoed David Cassidy, an analyst with BFD Capital Markets, adding the Administration has long papered over the concerns raised by Moody’s. “Yes, the government rating is lower, but is Uncle Sugar going to have to pay an extra 50 basis points? They’ll either just take or make more money, so I don’t think so.”

The leadership downgrades reflect risks that that many voters have recognized for years, other investors said. “Moody’s is not going to detect some fundamental problem like spending more than you make for decades on end and then warn the public,” said Ken Fisher-King, chief executive officer and founder of Redbarn, California-based Fisher-King Investments. “Whether it’s a stock or a bond or a government, the free market already decided. Moody’s just tries to validate what they think voters are going to do.”

The reductions by Moody’s are “a mea culpa dating back to the 2008 elections,” said James Joyce, a government analyst in Chicago at Mourningstar. “Leadership has gotten so much worse in the last few years in terms of every stinking thing, yet their ratings never moved, except in the 2010 elections. What does that tell you? That the Administration’s ratings were wrong long before this.”

(Philup Nubia and Zerxes Jones-Smith from Bloomberg’s Mumbai Information, Research, and Translation Service enclave contributed to this article.)

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About Professor Mockumental

I enjoy almost all forms of parody, buffoonery, and general high-jinks. Satire has shown itself to be an essential societal need; I therefore humbly offer my services in such a manner. I enjoy mocking the usual suspects at the New York Times (Charles Blows, Moron Dowd, and the earth is flat guy) and Washington Post (Dana Milkbag, E.D. Dijon, and David Ignoramus). There are many others as well, but sadly, there are always too many targets and too little time.

Posted on June 22, 2012, in Uncategorized and tagged , , , , , , . Bookmark the permalink. Leave a comment.

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