U.S. Government: Downgraded....

On Friday August 5, 2011, S&P just downgraded, for first time in 70 years, the long-term debt of the U.S. Treasury from AAA to AA+, with negative outlook. Here, I leave my comment I have made on a desperate cry made by a commentator at cafehayek blog.

I think it is right to degrade the creditworthiness of a government that has used easy money to rescue bankrupt companies (Bear Stearns, Fannie Mae, Freddie Mac, General Motors, and others) and create and fund unsustainable interventionist programs (Medicare, Medicaid, permanent wars, trade restrictions, and others). All this puts the U.S. government in a way of bankruptcy. The same thing is happening to European countries with their states' welfare economics. Eventually the general collapse becomes inevitable. Now is the time of such great global Keynesian collapse. The inevitable is about to happen...