Dear John: Just a few questions.
After viewing the president’s press conference after the budget battle, I’m wondering: Is his presidency dead on the vine?
ObamaCare will be a question until major parts are eliminated. Where’s Biden? Why are Lindsey Graham and friends on TV as much as the prez?
If rating agencies were evaluating the US, would we already be in the 500-600 range, without borrowing power?
The American people want jobs, balanced budgets and less bickering among those elected to solve our concerns. D.M.
Dear D.M. I’m sure the president is feeling pretty good about himself.
He stepped back from the acrimonious negotiations and looked like he was above it all while his Democrat “friends” looked overwhelmed and under attack — not to mention his Republican enemies.
The question: Is that the way a president should look when the US government is teetering on the edge of default? I don’t think so.
And the president got exactly what he wanted — no debt limit, at least until January or February. It’s party time among the big spenders in Washington.
That gets us to your last question: What is the creditworthiness of the US government?
Like anything else, that’s determined by the marketplace and not the rating agencies. Fitch threatened to lower the US debt rating, and S&P kept its rating one notch below the best rating.
But that’s all nonsense.
The real question is, what do the Chinese, Japanese, OPEC and all the other American creditors think about our country’s ability — and, more important, willingness — to pay back our debt?
I think they’d have to be pretty concerned. But that concern is offset by the fact that despite all the craziness in Washington, the US still is considered a safe place to park assets.
So here’s the deal: The minute one of our big creditors stops investing in the US or starts pulling money out of the US, all hell will break loose.
Will that happen tomorrow? The next day? A month from now? A decade from now? Nobody, of course, knows.
But the value of the dollar has been falling all year. And while few people follow this (and fewer care), this is something very important to foreigners. If the dollar is declining against their currency, foreigners are losing money (though those losses will only be recognized when the money is returned home).
But remember there is also something called quantitative easing, in which the Federal Reserve essentially prints extra money. This allows the Fed to be a shill, buying in the bond market.
This quantitative easing gimmick is one of the major things putting pressure on the dollar.
The bottom line: This is not a good situation in any light.
What would the US credit rating be if it were a person? About as bad as it gets. Uncle Sam would be waiting on line for payday loans and buying things on layaway.
Dear John: As the parent of three 20-something college graduates, I need to tell you that you missed a great opportunity to preach a strong message to [previous letter-writer] B.P.
Any 22-year-old that gets into a 401(k) will most likely retire in good to excellent shape no matter how aggressive or conservative their investment strategy is (as long as it is legal and legitimate).
As I tell my kids, contribute the max, get the company’s full match and enjoy the quarterly statements as they grow.
I have two mantras:
Pray early and often, and invest the same way. D.H.
Dear D.H. Look, I agree that saving for retirement is a commendable thing. And Wall Street certainly would like everyone to start at birth.
All I told B.P. was not to live just for tomorrow. There are a lot of things that’ll come along for your 20-something college-graduate children, including marriage, children, homebuying, vacations and fun.
I don’t think it’s a good idea to defer all the fun stuff just because you are obsessed with retirement. Do both — save a little, spend a little.
Since you have two mantras I guess I need at least one of my own, so here it is: “Sha-la-la-la-la-la, live for today” — at least a little. My thanks, by the way, to the Grass Roots.
Send your questions to Dear John, The NY Post, 1211 Ave. of the Americas, NY, NY 10036, or john.crudele@nypost.com.