Downgrading America!

I woke up the other morning to hear on NPR (public radio) that Standard & Poor had downgraded America! The first questions that popped in my head were “What does that mean? Is that possible” and the next one “Who had such power and authority to ‘downgrade’ America?” Having listened to all the angry debates, I still could not make heard or tail of it, nor could I wrap my mind around it. Some started attacking the credibility of S&P opinions and predictions given that they had given favorable ratings during the derivative carnage. Others were trying to be intellectually civil and sound “normal” about it. But all I heard were a lot of convoluted explanations full of words that didn’t mean much. One thing I got loud and clear was America’s credit score has gone down – but I thought this only happened to consumers. However, only one angry guy I listened to on NPR articulately claimed that this was another gimmick to create superficial fear and volatility in the market place in order to once again steal from the aspiring middle class investors seemed to make sense to me. I admit, it may be a selective sense because I have always been skeptical of the stock market rain dance principle. I don’t believe in it, nor do I trust the rational of it. But according to my bourgeois friends I am supposed to appreciate the stock market jargon and masquerade like I know that it’s the epitome indicator of one’s financial plan and success. An educated person is supposed to have something  intelligent to say at uppity cocktail soiree. But I live in the real world, good at maths and I have trust issues, so I would never completely trust anyone with my money! It’s the same reason I never gamble, I am a sore loser. By night fall I saw the news cast that Dow has fallen by 635 points.

Anyway as I listened all day to the debates, I also realized that some of the anger stemmed from the fact that people were feeling demeaned and insulted at the idea of being downgraded! I remembered Eddy Murphy in the movie “Trading Places” when he said to Dan Ackroid the worst thing you can do to rich people is to make them poor! Yes, it seemed to me that most of the angry comments were stemming from the fact that our superiority complex had been tarnished. What about what happening in Europe, no one has yet downgraded Greece, Ireland, Spain, Italy, Norway, etc, etc… The same afternoon I talked to my brother-in-law on Skype and he was curious about the economic temperature in the US given the news they were watch on CNN back home. He also enjoys complaining to me from time to time about the hardship in Zimbabwe. I reasoned with him at least they are better off because they are used to their permanent economic hardships and have coping mechanisms already in place. It’s not the same for us. To be downgraded from the position of affluence into hardships is a nasty shock to the system! Therefore we were obviously upset. He thought I was being superior. Maybe so, but the process of assimilation also entails embracing the value system, I retorted. Our conversation got me pondering about all the news trends in the last few weeks – the debt limit stalemate and now the credit downgrading. This has always been a province of the consumer – the idea of having bad credit, not nations. But then again third world countries have always been in debt. All the same, do we need to be borrowing so much as a nation?

 I personally hate living on credit. I have smaller fishes to fry close to home. All day my immediate concerns were on how much the US dollar is going to be trading on the foreign currency market. This I can relate to because its affects me directly. I have overseas tuition to pay and it had increased by 35% in the last 2 years due to the devaluation of the US dollar! I am feeling the pinch! The other day I just flew to Las Vega and sat next to a gentleman from Ireland. He was so happy to tell me that this was his second time visiting the US this year because his Euro was going such a long way! He could now have extravagant vacations to the US like never before; was coming to do his shopping of designer jeans which in Ireland he would pay 150-200 sterling pounds but here he was paying US$100 buck! Really! Good for you, I thought. I was not happy, his meat was my poison! My hard earned US dollar is not worth the same anymore and it does not feel good. I am humbled.

Copyright @ August 8, 2011 by Dr. Tendai Ndoro begin_of_the_skype_highlighting  end_of_the_skype_highl(DocNdoro) – Founder, SLIPPA (Strategy Leadership Institute in Private & Public Affairs); Brighten The Corner Foundation; CEO EDCTrainers, LLC.