United Liberty

Moody’s says that the the United States is a step closer to having its credit rating downgraded:

The U.S. and the U.K. have moved “substantially” closer to losing their AAA credit ratings as the cost of servicing their debt rose, according to Moody’s Investors Service.
[…]
Under the ratings company’s so-called baseline scenario, the U.S. will spend more on debt service as a percentage of revenue this year than any other top-rated country except the U.K., and will be the biggest spender from 2011 to 2013, Moody’s said today in a report.

“We expect the situation to further deteriorate in terms of the key ratings metrics before they start stabilizing,” Cailleteau said. “This story is not going to stop at the end of the year. There is inertia in the deterioration of credit metrics.”

The sad state of things is that there is no indication that spending habits are going to be scaled back. As we’ve pointed out here at UL before, the CBO recently reported that the budget deficits over the next ten years will add $9.8 trillion to the national debt.

As recently noted, the longer term picture is even worse. If our credit rating is downgraded, it means the cost of servicing debt will cost more due to the increased risk of loaning us money.

The cost of Washington’s fiscal irresponsibility is destroying this country.

In this video, an Iraqi mother explains why she is ambivalent about voting. Her situation sounds like that of many Americans.

How’s the for a great use of taxpayer funding. The United States will be dropping $1 billion to build a moat (you read that right) at the embassy in London:

The United States has unveiled plans for its new $1 billion high-security embassy in London — the most expensive it has ever built.
[…]
A moat 30 metres (100ft) wide and rolling parkland will separate the building from the main road, protecting it from would-be bombers and removing the need for the blast barriers that so dismayed the people of Mayfair.

The State Department sought to play down the cost of security measures, noting the expense of London building work. But the price puts the London embassy above the US’s most fortified missions, including the Baghdad embassy, which cost $600 million (£390 million) but required a further $100 million of work on air conditioning, and the Islamabad embassy, still under construction, which has cost more than $850 million.

It also does not include the 17.5 per cent VAT demanded by the Treasury on all buildings in Britain and which the US has refused to pay.

Um, this is ridiculous.

A humorous satire by Bill Maher on fears of an Obama presidency.

This is an educational film released during the 1950s. It briefly describes 150 years of American presidents from George Washington to Dwight Eisenhower.

Over at Facebook, a group has been created called “I Bet I Can Find 1,000,000 People Sorry They Voted for Obama.” 20 days before Barack Obama has even been inaugurated as the 44th President of the United States, people are already disappointed. This is what happens when a presidential candidate runs a campaign in which he promises the moon and the stars. Alas, that may be what you have to do to win nowadays.

Here is the group’s description:

Cast your vote in a moment of Hope for Change and then realize you got the same old gay-hating corporate shill?

This is just one more example we are in the midst of the most significant crisis in a generation. How this plays out nobody knows for sure. The only thing we can safely guess is that there will probably be more centralization around the world with nations and central banks escalating attempts to “fix” the economy through non-market forces.

Belgium is bailing out a large bank that just went under:

BRUSSELS, Belgium (AP) — Dutch-Belgian bank and insurance giant Fortis NV was given a 11.2 billion euro($16.4 billion) lifeline to avert insolvency as part of a wider bailout plan agreed to by Belgium, the Netherlands and Luxembourg, officials said Sunday.

Belgium’s Prime Minister Yves Leterme said the bailout shows savers and investors that debt-laden Fortis will not be allowed to fall victim to the global credit crisis after its share price plummeted in recent days.

I got this story sent to me by someone who asked “What’s the difference here?” I’m not sure what that meant, but if it asked what the difference between European and American actions is, I would say there are several factors. Please keep note that I am not an economic expert by any stretch of the imagination.

The latest Rasmussen Reports survey on the topic of the United States Supreme Court reveals some interesting statistics. It shows a majority of Americans believe decisions should be aligned with the written document as opposed to the primary other methodology of decisions, i.e. fairness & equality. While I am glad that a majority of Americans do agree in theory with libertarians & conservatives on this issue it is unfortunate that the percentage is not higher. With many polls showing “liberals” making up less than 15% of the electorate, one has to ask the question - where do the remaining 15% of the 30% of voters who think the nation’s top court should make decisions based upon fairness and equity come from?