Friday, August 5, 2011

What is a Banana Republic: "Govt Officials: US Expecting S&P Downgrade -- Based on 'Serious Mistake' in Analysis*"

Banana republic is a pejorative term
that refers to a politically unstable country
...ruled by a small, self-elected, wealthy, corrupt politico-economic plutocracy or oligarchy.

"Two government officials tell ABC News that the federal government
is expecting and preparing for bond rating agency Standard & Poor’s
to downgrade the rating of U.S. debt from its current AAA value.

Official reasons given, one official says,
will be the political confusion surrounding the process of raising the debt ceiling,
and lack of confidence
that the political system will be able to agree to more deficit reduction.

As a political science term banana republic is a descriptor
first used by the American writer O. Henry in Cabbages and Kings (1904),
a book of thematically related short stories derived from his 1896–97 residence in Honduras,
where he was hiding from U.S. law for bank embezzlement.

A source says Republicans
saying that they refuse to accept any tax increases as part of a larger deal
will be part of the reason cited.

The official was unsure if the bond rating would be AA+ or AA.

A banana republic is a commercial enterprise for profit
by collusion between the State and favoured monopolies,
whereby the profits derived from private exploitation of public lands is private property,
and the debts incurred are public responsibility.

Such an imbalanced economy reduces the national currency to devalued paper-money...

A third official says that S&P made a "serious mistake" in its analysis,
"based on flawed math and assumptions,"
so the Obama administration is pushing back.

Because of ...corporate manipulation,
the government is unaccountable to its nation,
the country’s private sector–public sector corruption operates the banana republic,
thus, the national legislature usually are for sale...

But even though "S&P has acknowledged its numbers are wrong,
it's unclear what they're going to do.," the official said.

S&P's numbers were off by "roughly $2 trillion," the official said.

Kleptocracy, government by thieves, features influential government employees
exploiting their posts for personal gain (embezzlement, fraud, bribery, etc.),
with the resultant deficit repaid by the native working people
who “earn money”, rather than “make money”.

S&P refused to comment."

-Jake Tapper

...a money class fleeces the ...system,
while the very trunk of the national tree is permitted to rot and crash. . . .

—Christopher Hitchens

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