Mandeville, LA - Exclusive Transcript - What does that AAA rating mean? Let me explain this to you really quick. Here’s what that AAA rating means. The AAA rating means that the general government of the United States has jail cells, officers, and guns. The people believe that the guns will be fired and the jail cells will be unlocked if we don’t guarantee that AAA rating by pledging fealty or slavery in the repayment of the debt. That’s what that means. Check out today's transcript for more...
Begin Mike Church Show Transcript
Mike: You may have heard yesterday that Moody’s, the credit rating service, is threatening to downgrade the hallowed, precious U.S. credit rating from AAA down to AA unless there is a deal made to lower the debt to GDP ratio. To my knowledge, the deal has not been made. I don’t think it’s going to be made because this was taken off the table as a campaign issue by the genius of political metrics John Boehner. [mocking Boehner] “What we don’t want to have is a debate in the middle of our coronation for Mitt Romney. We won’t have any discussion so just get away. We’re talking jobs and economics for the American people.” This was taken off the table as an issue. Moody’s is not taking it off the table. There is a downgrade coming here today. I would say if Moody’s is to retain any credibility, which I am not convinced that it currently has anyway, then it has to downgrade.
You do realize -- you really want a mind bender this morning, audience, on the way to work or on the way to the mailbox to get a check if you just happened to stumble onto this channel from Sirius left? Here’s a mind bender for you. What does that AA rating mean? What does that AAA rating mean? Let me explain this to you really quick. Here’s what that AAA rating means. The AAA rating means that the general government of the United States has jail cells, officers, and guns. The people believe that the guns will be fired and the jail cells will be unlocked if we don’t guarantee that AAA rating by pledging fealty or slavery in the repayment of the debt. That’s what that means.
Moody’s is saying, [mocking] “Man, that government is really mean and kick butt and it means what it says. When it’s gonna pay that debt back, it doesn’t matter who they gotta take it from, who they’re gonna steal it from, whose property they’re gonna confiscate, they’re gonna do it.” That’s what AAA means. [mocking] “No, Mike, it means that we’re good people and we pay our bills back. Uh, no, that’s not what it means, sorry. This is the United States. We lead the planet in bankruptcies and unpaid, unfunded liabilities. Sorry, wrong answer. It means what I just said it means. It means that our government will use its jails and its guns and its threats to collect the tax from you and from me to pay the creditor back. That’s what it means. Even if it can’t collect it at the point of the gun, even if you were to resist, then they just print the money and get us on the back end with inflation. They’re going to get it from us regardless. That’s what the AAA rating means.
If you’re looking to cut government spending and if you’re actually looking to wean 75, 80 percent of the current teat sucklers off the teat, you hope that bond rating goes down to D-. You home that bond rating is “Man, don’t loan those guys any money. Those people will not take threats and they don’t like being taxed. They don’t like being on the hook for debts. They don’t like government spending money that they don’t think it should be spending. Whatever you do, don’t invest with that country.” This is all part of what Tom DiLorenzo calls the curse of Hamilton, that running up debts is good because it gets us all together. We’re all one giant Coke song singing collective. We all have to collectively admit that our share of the debt is $1.5 million if you’re an actual income tax payer. About 51 percent of the population is not any longer. That’s what the debt rating means.
We’re going to deal with this seriously, though, said the Republican Party. [mocking] “You just wait and see, Mr. Church, John Thune is gonna do it with Scott Brown. They’re gonna fix it. You just wait. You can stop your caterwauling and wailing. They’re good conservatives and they’re gonna fix it.” Okay, why don’t we listen to John Thune, senator from Nebraska, on with Greta Van Susteren last night talking about the imminent threat of Moody’s cutting our precious credit rating.
[start audio clip]
Greta Van Susteren: First, an urgent warning, and it is about our nation’s debt. As if the threat of going over the fiscal cliff isn’t bad enough, it now gets worse. Moody’s is threatening to downgrade the U.S. debt rating if Congress does not reach a budget deal. Moody’s says it will likely cut its AAA rating on U.S. government debt by one notch. So can Congress strike a deal and avoid this downgrade? Senator John Thune is on the Budget Finance Committee and he joins us. Nice to see you, sir.
Senator John Thune: Nice to see you, Greta.
Susteren: So, Moody’s says they’re going to do this unless you do something.
Senator Thune: Right. It’s the latest warning that we’ve gotten. Obviously this is not the first time that we’ve been warned. This is the most predictable crisis that we’ve ever had. We know exactly how serious the situation is. The debt has crossed the $16 trillion mark. We are facing this fiscal cliff come the first of next year, less than four months from now, at which time the Congressional Budget Office has said, if Congress doesn’t act, it could plunge us into a recession, likely will plunge us into a recession, and could have unemployment above nine percent before the end of next year.
Susteren: How can the President and Congress, how can you all let this happen Last year when the S&P downgraded us, what it meant is it became more expensive for us to borrow money to pay for our debt. Each day it gets worse, yet everybody remains out there campaigning or doing anything but dealing with this very immediate problem. I don’t get -- I do my job. I show up here every night at 10:00. Where is everybody?
Senator Thune: Look, I think there’s a -- this has to be addressed. We’ve been saying for some time that we need a plan. Obviously the Republicans in Congress and particularly the House of Representatives have passed legislation that would avert the sequestration that would cut so dramatically our military spending, and so has the Senate Republicans voted on legislation that would extend the tax rates, which is the other element on the fiscal cliff. There are steps that are being taken by those of us at least who see this as a very, very serious issue . . .
[end audio clip]
Mike: Pause the digital media file, please. Did I hear correctly? We have to deal with the spending and the debt problem but we’re going to fight the sequestration. Did I hear that right?
AG: I believe you heard correctly.
Mike: The sequestration is what? Isn’t that a decrease in the increase in spending spread out over ten years?
Mike: You just heard the senator say, Mr. Frugal from the frugal party of Republicans, [mocking] “We know we’ve got to ring this debt in, Greta. We know how deadly serious the fiscal cliff is coming up. You don’t know how serious that is. We’re gonna do something about this. We’re serious about cutting spending. We’re also serious about eliminating this despicable sequestration deal.” What? Shouldn’t you cut spending and honor the sequestration deal? You know what the best part about this is? Thune acts as though they didn’t have anything to do with making the sequestration deal. Most of these clowns voted for it.
AG: Ideally, though, wouldn’t you want the cuts to come without having to get to the sequestration poison pill?
Mike: I don’t care. It’s immaterial. It’s a number on a ledger. You have debit in, credit out. I’m not an accountant, credit in, debit out, cash in, debit out, whatever the accounting formula is. It’s a number on a ledger. Who cares how it gets there. The point is that in one paragraph, if I understood and heard it correctly, in just one paragraph, you heard, [mocking] “We’re fiscally sound and we’re going to cut spending but we’re not really fiscally sound and we’re going to fight a cut in spending.”
End Mike Church Show Transcript