Commodity Analyst

S&P just revised the outlook on U.S. debt to negative, but reaffirmed its rating on the debt, at AAA.

This is massive news, especially on a holiday shortened week. 

People have talked about this in gesture, but no one ever, and I mean EVER expected this to actually happen.

The commentators on CNBC are besides themselves with the news, and are stumbling over their words as they try to put a positive spin on this.

Gold is rocketing on this news, and we could see $1,500 an ounce by the end of the day.

Time for the Democrats & the Republicans to really get their act together and do something. 

Remember, there are 2 other ratings agencies, Moody’s and Fitch.  Usually when one ratings agency acts, the others follow suit.

I just saw an article that says the Federal Reserve is telling people to ignore bloggers because economics is hard and the common person doesn’t have what it takes to grasp it.  Of course this was published by some lunatic Ph.D working for the Fed named Kartik Athreya.  This is precisely the kind of elitism that gives the Fed a bad name and why there is constantly talk about abolishing the Fed. Here is the paper in its entirety.

I don’t claim to know everything about economics.  I understand it’s a complicated topic and extremely intricate.   I do however understand common sense and know what I see with my own eyes. In talking with friends and family, I can see the hardships and gauge an anecdotal tale of the economy. The author of this article seems to lack these inherently human traits.  He also discredits some of the Fed’s biggest supporters in Paul Krugman and Brad DeLong. I may not have a Ph.D. but I’m smart enough to know not to piss off the people who defend me.

Maybe if they less time giving someone with a laptop and a bottle of scotch a voice, we might be in just a tad better shape than we currently are.