[OPINION] How rating agencies are being used for the political and economic agenda of the U.S.

A group of Swiss researches from St. Gallen University showed that rating agencies like Moody's, S&P and Fitch have at best made mistakes in their ratings of the European countries, and at worst actively and systematically manipulated the markets through their ratings.

This also means these companies are largely directly responsible for the current financial crisis in Europe and the rest of the world, either inadvertedly by their mistakes or by their active and systematic manipulations. What do you mean, free market?

Of course this is all being denied by those rating agencies.
However, if we go back to the congressional hearings about the 2008 crises, these rating agencies pretty much admitted that however paid for the ratings could/would pretty much get the ratings they wanted.

So we have to ask ourselves, if these ratings can be bought (and they can as these companies pretty much said so themselves in not so many words), who stands to gain the most by economic troubles in Europe?

Only one party qualifies, and that would be the US government. The US government is pretty much bankrupt. The US national deficit is the same or more than the GDP, which to normal people translates in never able to repay their debts. (FYI: that's worse than in Greece) Increasing taxes in the current political climate in the US is pretty much political suicide, and cutting costs is something that is really only talked about but never acted upon. So the only 'fix' the American government knows is to print more dollars.

Obviously this weakens the position of the dollar on the international markets, a trend that could be seen happening for years. More and more international trade was happening in the more stable Euro instead of dollars, putting even more pressure on the dollar.

And then we had the crises in 2008. This made the dollar even weaker compared to the Euro, but instead of fixing their financial systems when they had a chance to do so, they elected to do nothing.

By now, the Euro was costing $1.50 and rising. Some expectations were it could even go as high as $2.00 for every Euro. Something had to be done.

So what do you do? You buy some ratings from your friends at the rating agencies and you create a little bit of panic in Euro-land. This will surely pressure the Euro down and with a little luck the ever lasting internal bickering will keep things going. Unfortunately, things didn't go exactly as planned. The Euro wasn't pressed down all that much and was actually going back up after some intervention by ever divided country leaders in Europe. So they did it again. And again. To the point where we are now, where the problems in Europe are threatening to take the entire global economy on its knees.

I don't believe that was the intention, but more a matter of not knowing when to stop.

If you think this is just a bunch of conspiracy theories, keep in mind that the US economy, while strong, has not been healthy for a long time. It has quite literally been living on borrowed time and borrowed money. At the same time, the European economy has been getting stronger and stronger. In itself, the European market is larger than the entire North American market, but because of its divided nature it has never been a real economic power. However, with the EU economies getting more and more unified, it is becoming more and more of an economic super power. One that could easily push the US market aside as the world leader. And that is something that would never be allowed to happen if there was any way to prevent it.

All conspiracy theories aside, do we really want to depend on 3 commercial companies that can be bought when it comes to our economy, our incomes, our pensions and our social benefits? I think not and I think it is a pretty scary situation to be in and something that needs to be dealt with sooner rather than later.

Happy dreaming.