Belling the Cat !

They did it when others are reluctant to do. When the whole planet knows that United States should not deserve the rating what it had till yesterday and that the value of USD is far lower than anyone can perceive rationally. But, it was S&P to announce to the world that the US is in a far more trouble than anyone can ever imagine!

The downgrade should have come many years ago; nonetheless they at least did it. The reality check came in for these rating agencies during the Lehman days, where ratings then were a joke. The entire world knows the rating status of Lehman before their bankruptcy. And, quite understandably it now seems that some of these rating agencies have learnt their lessons.

But, it still seems that western politicians have not learnt their lessons. We had seen in it during the Roman Era, The Great Britain days and now the United States. It is no expectation. It has to be accepted. Inevitably, we are humans and prone to make the same mistakes time and again. These mistakes were made centuries back in an era that we never lived in, and these mistakes will again be made in the centuries to come. There can be no single country that will ever dominate this planet. There can be no single fiat currency that can be a reserve currency forever. It is a wave phenomenon. It is THE Nature’s Law under which the entire universe revolves around. We will see this phenomenon quite often in finance – markets and economies - purely because; crowd psychology prompts one to make the same mistake.

Although, it is premature to search for the new world order – the next super power, the next reverse currency, the urge for the new world order has already began and it is just a matter of time (read years) before the new one arrives, just like the new wave brings cheer and hope.

Uncle Sam has been robbing peter to pay paul. Truly, America is a poor man’s land earning their livelihood on somebody else’s money. In a truly globalised village, none is isolated; the entire planet is feeling the pain. And, the global economic unrest on the US is on the rise. And, we are nearing the day when peter would stop paying paul; and that day would be remembered for centuries until the next new wave creeps in. Purely because, no one can take that pain.

The problems surfaced in the US are only a tip of the iceberg and what S&P could do is to alarm the world to take their wallets back, so that the pain will be less severe, at least to peter.

Kudos to S&P for belling the cat, finally!