by citizen k
Sat Jan 12th, 2008 at 08:28:03 AM EST
Right at the moment that the financial sector is digesting massive bailouts for their latest Ponzi scheme, Moody's announced that the US AAA bond rating is imperiled by spending on social services. I'm not sure how much further irony can be pushed.
The Moody's report
"The combination of the medical programmes and social security is the most important threat to the triple-A rating over the long term,"
If this were normal times, one might be struck by the bad economic analysis or the peculiar way in which, for example, tossing a trillion or so into the toilet for the Iraq war is not an issue for Moody's - perhaps because Moody's has now made a habit of assuming "off the books" expenditures and liabilities don't count. But in the middle of a financial crisis that was aided and abetted by Moody's willingness to assign high credit ratings to obvious flim-flam, ordinary measurements of hypocritical double talk can't even start to convey the astounding levels reached now.
Here is a lecture on fiscal rectitude, a stern reminder that the US cannot go on providing medicine for poor and old people or pensions for its citizens, from a rating agency that has spent the last 10 years reassuring investors that papers backed by transparent sleight of hand and repeating pyramids of debt based on a foundation assumption that real-estate prices never drop and insured by insurance agencies that had nowhere near the assets needed to actually pay in case of loss, could be considered to be absolutely rock solid. And now, as its financial partners and customers crowd 'round the public treasury, weeping for bailouts, Moody's wags its finger at the irresponsible gluttons who want, you know, health care!
Kissinger winning the Nobel Peace Prize was clearly just a prelude to our modern levels of irony.