It’s taken a while. But the wheels of the locomotive named Inevitability grind relentlessly onwards.
For the first time in history, Standard and Poors has placed the USA’s credit outlook on “negative”, warning that the government must take meaningful steps to reduce debt.
Back in October through December 2009, Barnaby Joyce forewarned of the possibility of the US defaulting on its debts. He was roundly mocked and ridiculed by all the usual suspects – mainstream media, “expert” economists, (now former) Treasury Secretary Ken Henry, and the ALP’s band of genii led by “Goose” and Tanner.
Now, here we are barely 18 months later. The US credit outlook is being downgraded. It has almost completed a $600 Billion QE 2 (“Quantitative Easing”) – which means creating literally hundreds of billions of dollars out of thin air, Zimbabwe-style. There is every indication that QE 3 will inevitably follow.
(Printing money inflates the money supply, devalues your currency, and so effectively reduces your debt burden “by default”. Devaluing your currency is the most common form of national debt default.)
And the World Bank President warned a few days ago that the world economy is now just “one shock away from a full blown crisis”.
Barnaby was right.
Thanks to a hostile and clueless media pack, egged on by the “expert” ridicule of the likes of Henry and “Goose”, Barnaby was blasted out of his brief role as Opposition Finance Minister in early 2010. Despite his being better qualified than the entire ALP cabinet combined.
Barnaby Is Right 
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