America the Corporatocracy?

W have been a corporatocracy for a long long time. Capitalism left unfettered is as bad as any form or socialism/communism (which I know are not the same things). We do have corporate welfare and we do have the corporations and "fat cats" dictating to the Republicans and the Dems have no guts to do anything about it (and they are fed by the same fat cats to be honest). So those on disability, elderly, the poor, the working class, what's left of the middle class - we will soon all be hung out to dry for the sake of the corporation - mulitnational at that. Our nation has lost its soul...I hope we can refind it but that hope is dimming.

S & P as well as Fitch and Moodys is recognized by the SEC and investment world as an agency qualified to rate short term and long term public and private debt. There has to be a standard to rate the safety and creditworthiness of debt obligations for individuals and institutions that trade them, and S & P fills that role. The rating agencies play an essential part in the world's financial system. How accurate or credible their ratings are is another issue. They gave AAA top ratings to the CDOs that were packages of high risk subprime mortgages that formed the backdrop of the financial collapse in 2007-2008 and our current recession and debt crisis. The rating agencies were also retained and paid by the financial institutions that issued the worthless debt obligations. So your point is well taken. I also agree that the scenario advanced by special interests that the U.S. is on the precipice of socialism is total rubbish. America today is the era of the 300 million dollar CEO payout, multi-million dollar executive bonuses, sports contracts worth 150 million dollars, etc. Statistics show that in 1915 (the gilded age of the Rockefellers and Carnegies), the top 1% of Americans earned 18% of totl income, while today the top 1% earns 24% of income. Also, from 1979 to 2005 the top 20% increased their income 69% while the bottom 20% increased theirs 6%. So, I can't believe intelligent people buy the argument that Obama is a socialist and redistributionist for proposing to let the Bush temporary tax cuts expire and increase the top marginal tax rate from 35% to 38.5% to raise additional revenue. It was 38.5% under Clinton, 50% under Ronald Reagan, 70& under JFK, and 91% under Eisenhower. My concern is that special interests controlling members of Congress and vital media outlets (e.g. FOX, talk radio) are using their vast wealth and clout to turn the U.S. into a form of corporate state where a ruling elite of crony capitalists consolidate their vast wealth and power at the expense of the average American. I'm appalled that 256 members of Congress signed a pledge with a private citizen Grover Norquist (he was a buddy of that crook Jack Abramoff)not to raise taxes or incease revenues under any circumstances as a quid pro quo to finance their re-elections. Aren't Congressman elected to represent their constituents and the American people? It's more appalling that there is no public outcry about such blatant corruption.

Nothing is inherently worthless, or valuable. Everything is worth what people agree it is. Gold and Silver are called "precious metals", but only because we want them to be. Diamonds are really worthless rocks, but the industry works hard to maintain the value based on emotional appeal. The same is true with less tangible things, like reputation and credit ratings. No one is holding Congress hostage, S&P is just responding to the value international investors put on the ability for the US to make good on the payments of the national debt. When we go for a loan, the loaning institution reviews the person's ability to pay, and negotiates terms of the loan based on that review. Length of loan, interest rate, and the maximum amount they are willing to risk on the borrower are all part of the deal. Standard & Poor (I know, wonderfully ironic name ;~D) isn't telling Congress they have to do anything. They aren't even saying "or else". They are simply reminding the US that the world has lost confidence in our economy as an investment, and saying telling Congress what it has to do to gain the confidence back. No one but Congress and Obama are telling Congress and Obama they HAVE to borrow money from anyone.. especially internationally. Congress and the Prs are free do decide not to borrow ANY money, or just offer T bills to US citizens only. The only way it could be a "ransom" is if the S&P was threatening force if the countries that recognize it don't borrow money.

I knew that someone would say something like this. -sigh- The S&P has not dictated anything. The S&P is doing what they are supposed to do. Namely determining the risk of loans. If you are buying bonds (or any other investment), you want to know how risky that investment is. Groups like S&P, are service companies, that evaluate the risk of various bonds and investments. The S&P correctly evaluated the current insane spending going on at the Federal government, and correctly realize that the current spend cut measure are not even a fraction of what is required to get the deficit and debt under control. Therefore... they lowered the credit rating of the government, *as they should* when the government is out of control. The S&P has no control over the government, and it is retard to suggest so. If they did, we would never have been in the situation in the first place. People in this country are amazing. You go 110 MPH in a 25 zone, and act like the officer is screwed up for pulling you over. The Federal government has a 1.6 Trillion dollar deficit, and act like the S&P is screwed up for pointing it out. Really.... American babies need to grow up into adults at some point.

an interesting question. the problem is that a corporation exists to make as much money as it can. whereas the role of a politician, in a democracy, is to represent the interests of those who elect them. too often the interests of a corporation, too make as much money as possible, and the needs of the electorate, clash. as a corporation will charge as high prices as they can, expand their business as much as they can, at the expense of smaller businesses, and pay as low wages as they can, which is also bad for the small business community, as they are often reliant on a local economy. unfortunately, through political funding, the corporate sector has gained too much power over politicians. though there are other problems, beyond just political funding, such as when the cost of being elected is so high, those who become politicians are likely to be wealthy individuals, and feel more connected to other wealthy individuals than those they represent. big problem this. as for S&P, in reality the US can pay tbeir bills. and bush's tax cuts to the rich have helped to create this deficit, as have the extra benefit payments that came from the recession caused by the financial crisis, and attempts at stimulus. much of the blame for this deficit can be laid at the door of the corporate sector. its a serious problem, though awareness of it, is a necessary precusor to solving it.