Something Fitchy in the Air

Imagine a borrower who comes to a bank to ask for a consumer loan. The loan inspector sits down to collect information about the borrower. He finds out that the applicant is deep in debt already; his total liabilities exceed his total assets. Only the interest payment on his previous loans are more than 25% of his income. He has no assets to offer as a collateral – the previous loans all went to pure consumption, and there is no equity left. The inspector also finds out a few disturbing facts about the applicant’s moral character as well: He is addicted to spending. He just had a session with his debt consultant who told him he needs to stop spending; the applicant agreed and struck a deal: He would gradually decrease the annual increase in his spending in a period of 10 years, only if he is allowed to sharply increase his spending in the next two or three months. There is also evidence for fraudulent practices: The applicant has been caught several times before paying his previous debts with forged checks. He is also known for robbing banks and his neighbors at the point of a gun. No evidence of decent gainful employment is presented, and yet the applicant claims to be solvent.

How would that inspector rate the applicant?

Well, we learned today how Fitch Group would rate him: AAA. One of the “Three Big” rating agencies in the world rated the Federal government triple-A, as opposed to Standard & Poor’s downgrade last week. After years of poor performance (think Freddy Mac and Fannie Mae), S&P decided to finally do something standard, may be to justify the other half of its name. Standard, keep this in mind, not excellent. Excellent would be downgrading the US government to junk status, where its place really is.

And that’s when Fitch got in to justify its own name.

Yes, there is something fitchy in the air; or, since fitches are a European thing, I should say something skunky. What methodology does Fitch use to decide that a spending addict with debts higher than the total value of the biggest economy in the world deserves an AAA rating? And they say that the “outlook is stable”? You mean, “stable” like in “no chances that anything is ever going to change,” the addict will be an addict, and the criminal will be a criminal, and the counterfeiter will be a counterfeiter? Who in the world do they think will believe them? The stench from such statement is so bad, and the evidence for little dirty political games is so overwhelming, Fitch’s rating can be only met with laughter and simply ignored.

That a company of that rank will even involve in such laughable behavior is only a sign to the coming end of the current world socialist elite. They are nervous; the markets and the economies of the leading countries are a living example of the failure of socialism and Keynesianism to deliver on its promises. Spending doesn’t work; eventually you run out of people with money willing to lend you more to satisfy your appetites. But to admit as much means to admit that capitalism and Christianity have been right all along: That it is not the government that produces wealth, nor consumption, but the moral commitment of the millions of market participants to save and invest. But moral commitment is a dangerous word for the elite; moral people do not need an elite, they can take care of themselves without bureaucracies and regulations and government intervention. If the moral factor of the economic growth is admitted, this is the end of the official socialist ideology that growth is simply the product of impersonal mechanisms manipulated by “trained professionals.”

There is nothing left right now for the elite – political, financial, and bureaucratic – except to keep talking to itself and assuring itself that “everything is OK,” and “the outlook is stable.” In the growing panic of a world gone out of the control of the controllers, such psychobabble is the only option left. It stinks, of course, of insanity and mental issues; and the stench is increasingly felt everywhere. Something fitchy is in the air, and Fitch Group is just another of those panicked elite groups that contributes to it.


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About Bojidar Marinov
A Reformed missionary to his native Bulgaria for over 10 years, Bojidar preaches and teaches doctrines of the Reformation and a comprehensive Biblical worldview. Having founded Bulgarian Reformation Ministries in 2001, he and his team have translated over 30,000 pages of Christian literature about the application of the Law of God in every area of man’s life and society, and published those translations online for free. He has been active in the formation of the Libertarian movement in Bulgaria, a co-founder of the Bulgarian Society for Individual Liberty and its first chairman.
  • GOLDTOOTH

    where is the birth certificate? SS don't match, WoW here is a good crook, we will use him to right everything off.Fed has there thinking cap on.