Monday, December 5, 2011

The Curious Timing of S&P Putting EU Nations on Watch for Possible Downgrade

Standard & Poor's has put 15 European Union nations on watch for a possible downgrade of their credit ratings, including Germany and France.

What convenient timing.

The heads of state of the EU members meet on December 9 to consider changing the EU treaty to bring about a more centrally planned European "fiscal union." The S&P announcement provides further cover for the heads of state to agree to treaty changes. It's all to save the EU, you see.

In truth, a bankruptcy of countries who can't afford to pay their bills would be a good start to bringing sanity to EU nations. However, the banksters will have none of that. Led by German Chancellor Angela Merkel, the EU is about to create an even greater monster that is sure to eventually make a mess of freedom through out the eurozone.


  1. Throw a few pieces of paper their way (S&P) and I am sure that they'll come around. LOL

    Here's a little X-mas break project for all of you students: list all of the S&P brass who are not connected to government by at least 3 degrees of separation.

    I bet that you can't do it!

  2. I think this is the S&P's way to steer the meetings in the favor of bond holders. My guess is that they want to hear either (1) the idea of a Euro Bond or (2) the ECB will print money (ie debt monetization program) to prevent a follow through on the downgrades. My guess is that it gets neither. Instead the Merkozy are going to push full on pre-Euro Bundesbank standards down the throats of all Euro currency members in exchange for some sort of IMF (aka US/China/Japan/ECB Led) bailout for the weak ones. Of course, we all know that this will be DOA before the meeting even starts, so my guess is that its risk off for now and its time for those bond rates to start ratcheting back up to make sure the profligate members are appropriately on their knees begging and promising anything to the Merkozy to make the pain go away.

  3. Joseph, haha, I'm not gonna bother trying here :)

    question is who hasn't agreed to the 'fiscal union' agreement? Noticed today Italy and Spanish rates shot down; Portuguese rates shot up...

    S&P/US/banks pressure bond rates but ECB can buy those bonds and lower the pressure on bond rates as it has done...I'm losing track of whose on whose team...still need Germany to ok printing & presumably, an official change in the EU treaty...

  4. The banksters are going to enslave the EuroBorg even further. Only absolute fools work for a living there.

  5. Anonymous 8:37,

    Yes, I realize that it is quite a tough order. I was actually going to lower it to 2 degrees until I realized that anybody that has ever done business with them would be implicated (person A-->S&P-->'o governo', 2 degrees of separation).

    Though, I cannot help but feel that even if I went for the 'ol 'Kevin Bacon Standard' of seven degrees of separation, that nobody would be able to spit out a clean name. Maybe one guy, the head of HR (hypothetically).