Excellent analysis on the excessive power of Moody's Investor Services to coerce corporate and now US government behavior, as well as the failure of Moody's and others to assess risk of market failure.
I also agree with your criticism of our national imperial state, especially the sinkhole that is our occupation of Iraq, and argument for single-payer health care.
One problem with your analysis is that in proposing to wipe out the federal deficit, you ignore the obvious: the federal government should never strive to balance its budget in the middle of an economic downturn. That way lies madness, as the government piles on to the economic contraction.
Instead, the federal government should aggressively put money into the pockets of those who will immediately spend it; that is, those at the bottom economically who need it most.
As the cascade of cards that is our current relatively unregulated financial and securities markets unravel, the federal government will be called upon to bail out major banks and brokerages in order to prevent economic collapse. While doing so, the government should revive and create new regulatory safeguards to prevent this from happening again.
San Diego, CA
Jan 28 2008 - 11:09am