This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Credit Ratings Now Irrelevant to Bond Markets?

This presents the Bond Parasites (and their messengers in the Corporate Media) with a prickly problem. How do they prevent some massive selloff of the trillions of dollars in U.S. Treasuries sloshing around in global markets when a ratings downgrade causes even the most-deluded Sheep to dump this grossly overpriced paper?

Simple. You proclaim to the world that not only are credit ratings irrelevant to the bond market, but (surprise, surprise) they have been irrelevant for 40 years. Here we must applaud the audacity of the propaganda machine.

The financial blood is still dripping from the wounds in European bond markets, after having been skewered for the past three years by ratings downgrades followed by immediate jumps in bond market interest rates. This is the mechanism which (along with manipulation of credit default swaps manipulation of credit default swaps ) has been totally responsible for the deterioration of these economies from borderline-insolvent to imminent bankruptcy.

Conversely, it's only the rampant fraud of the U.S. bond market (in reverse); where near-zero interest rates are maintained despite the completely obvious insolvency of the U.S. which forestalls bankruptcy. If the U.S. was forced to pay the same interest rates on its own bonds as Wall Street has inflicted upon European bond markets, the U.S. would have already been pushed into default itself.

Here we have the second, parallel motive for the new crime paradigm which Bloomberg is attempting to pass off. Up until now, the U.S. government (with the help of the propaganda machine) has been able to prop-up the Treasuries Ponzi-scheme by counterfeiting U.S. dollars to buy up all of its Treasuries, while pointing to the fraudulent "AAA" rating of the U.S. to legitimize this fraud.

But how can this massive fraud be maintained after the U.S. has its credit rating cut? By telling the Sheep that credit ratings have never mattered to bond market prices -- despite what they have seen with their own eyes across the Atlantic.

If I have learned one thing over the past several years, it's to never underestimate the gullibility of market Sheep. So stay tuned to see if the propaganda machine is successful in selling another Big Lie: that credit ratings are (and always have been) totally irrelevant in the bond market.

3 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs