Dirt and Toast for Breakfast?
A headline on Bloomberg recently read: Dollar Is Dirt, Treasuries Are Toast, AAA Is Gone. This not so surprising sentiment is the title of an opinion piece by Mark Gilbert on the investment news site.
Gilbert lays out three reasons why currency investors are starting to doubt the US government, after all why ‘pick on’ the dollar as he says: “These include the state’s pressure on Bank of America Corp. to buy Merrill Lynch & Co.; the priority given to Chrysler LLC’s unions over the automaker’s secured creditors; and the freedom that some banks will regain to supersize executive bonuses by giving back part of the government money bolstering their balance sheets.”
It’s sad, but I revel in seeing stories like this on such a mainstream, if niche, media outlets. Will Obama Time Magazine ever run something like this? Probably not. A likely op-ed in the New York Times? Not if it unmasks Krugman for the hack that he is.
As an aside: let’s make it clear … dollar is dirt and treasuries are toast, those things ring true to me. Adding that AAA is gone means nothing. Gilbert mentions that even a downgrade to AA makes the USA’s creditworthiness “very strong” — something that is laughable. Standards and Poor’s ratings are as worthless as the Nationally Recognized Statistical Rating Organization and the Securities and Exchange Commission that props them up.
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