Fitch Ratings Agency Threatens California for Arnie's Drastic Austerity
Jan. 15, 2008 (EIRNS) The Fitch bond rating agency on Monday placed approximately $50 billion of the State of California's bonds, currently rated "A+" or "A," on "Rating Watch Negative." The reasons Fitch gives are two: 1) "heightened" risk of "lack of political consensus for fiscal solutions" and 2) the "revenue deceleration" caused by California housing downturn. While predictions are that this revenue collapse will reverse sometime late in 2008, "Fitch's view is uncertain," thus California is on the "watch" list.
What Fitch has its eye on is whether the state's legislature caves in to Schwartz-a-Nazi's demands for "consensus." According to Business Wire, the rating downgrade, "would be triggered by the lack of timely action during the emergency session to implement proposed cash conservation or equivalent measures to offset cash shortfalls projected through August, accelerating economic and revenue weakening, extended delays in budget enactment, or the absence of sustainable structural measures incorporated in the final budget."
Thus does the strong arm of finance control the political processes under corporatism (fascism). Or as Lyndon LaRouche put it: Don't be a "Son-of-a-Fitch."