Tag Archives: S&P

Five Things The Liberal Left Do Not Want You To Know ABout the S&P Credit Downgrade!

1)  The liberal left says the S&P downgrade had to do with the Tea Party not wanting to raise taxes.  They hope you don’t read this:

  • Standard & Poor’s takes no position on the mix of spending and revenue measures that Congress and the Administration might conclude is appropriate for putting the U.S.’s finances on a sustainable footing.

2)  Despite the liberal left’s positon, it’s not just about taxes.  S&P prominently criticizes the political impossibilities of containing growth in public spending and reforming entitlements.  Is that the tea party’s fault too?

  • We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process.

3)   S&P noted that the debt ceiling deal didn’t raise the debt limit far enough.  Most folks should certainly recognize that as the Tea Party’s position!

  • We also believe that the fiscal consolidation plan that Congress and the Administration agreed to this week falls short of the amount that we believe is necessary to stabilize the general government debt burden by the middle of the decade.

4)  Along with the deepness of the recession, the sluggishly terrible Obama “recovery” was another reason for their negative position.  Is the Tea Party responsible for the Obama’s failed economic policies too?

  • First, the revisions show that the recent recession was deeper than previously assumed, so the GDP this year is lower than previously thought in both nominal and real terms. Consequently, the debt burden is slightly higher. Second, the revised data highlight the sub-par path of the current economic recovery when compared with rebounds following previous post-war recessions. We believe the sluggish pace of the current economic recovery could be consistent with the experiences of countries that have had financial crises in which the slow process of debt deleveraging in the private sector leads to a persistent drag on demand. As a result, our downside case scenario assumes relatively modest real trend GDP growth of 2.5% and inflation of near 1.5% annually going forward.

5)  They might downgrade us again if they see “less reduction in spending” than was agreed to.  Of course we all know the Tea Party is also responsible for not cutting spending enough!

  • The outlook on the long-term rating is negative. We could lower the long-term rating to ‘AA’ within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.

When will Obama step up and be a man?

It is interesting to me how the current administration is so child-like in its actions.  One of the signs a child is becoming an adult is the willingness to accept responsibility for one’s own actions.  In light of the recent U.S. credit rating downgrade, democrats are scurrying to place the blame wherever they can.  Barney Frank, famous for his part in the Fannie May/ Freddie Mac fiasco, is blaming the U.S. military.  John Kerry, Howard Dean, and David Axelrod are, of course, blaming the “terrorist” organization known as the Tea Party (which while expected, is so blatently absurd it defies comprehension).  

The Tea Party conservatives are the only ones who offered any real plans to fix the problem;  i.e. Cut, Cap, and Balance and Mack’s Penny Plan.  The Tea Party has consistently fought against the dangerous borrowing and out-of-control spending  by both the  spend-happy Democrats and the fiscally irresponsible Republicans, that have caused this problem. 

The current administration (as in Obama’s administration), would hear none of it!!!

Back when our schools actually taught reading, writing, mathematics, and some personal integrity (rather than simply how to get by and work the government entitlement system), even an eight-grader would have realized that you cannot borrow 40 cents of every dollar you spend for very long without creating disasterous results.

It is interesting to note that S&P never mentioned a “lack of revenue or more taxes” problem; but was clearly focused on America’s sky-rocketing debt and out-of-control spending.  S&P had also let it be known that if  Congress could pass $4 trillion in real spending cuts, say as in CUT, CAP, AND BALANCE, the government could have avoided the credit rating downgrade!  And a furious Obama, in his day-late and dollar-short press conference, lashed out at S&P for trying to sabotage his presidency. 

The fact is that a year ago, Obama’s own Simpson-Bowles Debt Commission recommended many of the same measures included in the Cut, Cap & Balance plan, but of course Obama, being Omniscient, would not listen.  Instead we got this ludicris “compromise” in which the “proposed budget cuts” included in the plan were wiped out in one day of government spendng.  Democrats are just so good at playing the blame game!  Here are some more examples:

  • Obama blames wrangling for “downgrade”
  • Obama blames Reagan for America’s debt and out-of-control spending
  • Obama blames ATMS for high unemployment
  • Obama blames Arab Spring and Tsunami in Japan for lack of jobs
  • Obama blames YOU for high gas prices
  • Obama blames lazy oil companies for America’s energy shortfall
  • Obama blames Congress for Jobs
  • Obama blames U.S. high schools for dissing him
  • Obama blames everyone else on oil prices
  • Obama blames Bush, media and American consumers for craptastic economy
  • Obama blames everyone for everything

Hmmm! I am begining to see a trend here … can you? 

I did read that Obama is talking to a former Reagon aid (an expert on using trickle-down Reagonomics) to fix the debt problem … hmmmm!