Welfare, warfare and debt

All the candidates keep talking about "change." Well, the winds of change are blowing, but the "perfect storm" that's been brewing for a while may be beyond any of their ability to manage, unless they've got a coherent philosophy of governance not tied to coddling specific special interests with government favors.

The US is at risk of losing its top-notch triple-A credit rating within a decade unless it takes radical action to curb soaring healthcare and social security spending, Moody's, the credit rating agency, said yesterday.

The warning over the future of the triple-A rating - granted to US government debt since it was first assessed in 1917 - reflects growing concerns over the country's ability to retain its financial and economic supremacy.

Meanwhile:

Doubts intensified last night over the nature of an alleged aggressive confrontation by Iranian patrol boats and American warships in the Persian Gulf on Sunday, after Pentagon officials admitted that they could not confirm that a threat to blow up the US ships had been made directly by the Iranian crews involved in the incident.

Several news sources reported that senior navy officials had conceded that the voice threatening to blow up the US warships in a matter of minutes could have come from another ship in the region, or even from shore...

...the mystery remains of where the voice that apparently threatened to bomb the US ships came from. The Pentagon has said that it recorded the film and the sound separately, and then stitched them together - a dubious piece of editing even before it became known that the source of the voice could not, with certainty, be linked to the Iranian patrol boats.

And while all this pursuit of welfare and warfare continues:

To shore up its deteriorating finances, Merrill is now in discussions with investors in the United States, Asia and the Middle East, including American private equity firms, to raise about $4 billion in the coming days, these people said.

The developments underscore the rising toll that the mortgage crisis is taking on many once-proud Wall Street banks. In recent months Merrill and several other firms have grabbed financial lifelines from wealthy foreign governments. Further investments by so-called sovereign wealth funds could prompt scrutiny by Congress. ((as if they've been helpful so far... -- Jemison))

The increasing power of the State marches on...