Skip to comments.STANDARD AND POOR'S DOWNGRADES US CREDIT RATING TO AA+
Posted on 08/06/2011 10:49:04 AM PDT by NationalSpotlight
Everyone knew this one was coming. Finally, it happened. For the first time in American history, Standard and Poor's (S&P), one of the leading companies in financial research and analysis on stocks and bonds, downgraded the US from a top credit rating of AAA to AA. This means that US Treasury debt is no longer considered the safest in the world. There are thirteen countries that have a AAA credit rating: Australia, Canada, Denmark, Germany, the Netherlands, Norway, Singapore, Sweden, Switzerland, Austria, Finland, France, and the United Kingdom.
S&P predicts that it will take a long time for the US to get back its AAA credit rating. In two years, S&P could downgrade the US credit rating to A if nothing is done. There is no surprise here. President Obama and the Federal Reserve have been spending or printing money like its paper. S&P projects US debt to climb to $22.1 trillion by 2021. Where is all this money coming from? President Obama's spending binges. The failed stimulus package, the health care bill, and having a budget with at least $1 trillion deficit every year he has been president. Other factors that contributed to the debt are the two wars we are fighting in Iraq and Afghanistan, President Bush's Medicare Part D and No Child Left Behind program, and the expansion of entitlement programs such as Medicare, Medicaid, and Social Security. First and foremost, we need to throw President Obama out of office in 2012. If we fail to do this, our country is in deep trouble and will become like Greece.
US growth rates have been around 1% or under 1%. Even though the July jobs report created +117,000 jobs, the growth rate of the economy is dismal. There is a major difference between what President Obama did after he inherited the recession and what President Reagan did in the 1981-1982 recession. President Obama implemented a failed stimulus package that gave money to Wall Street and the banks, who are doing really well now while the middle class and the poor are suffering, and spent money on attempting to create jobs. Only one problem: the government's job is not to create jobs. 75% of our economic growth comes from small businesses. President Reagan helped small businesses by cutting their taxes and regulations that hinder job creation. President Obama's Keynesian economics failed. President Reagan's supply-side economics was a success producing growth rates between 5%-9% annually. One cannot argue against these numbers and facts. Some people think President Obama is a mystery man: he is trying to do the right thing but he always makes the wrong choice. Obama does not like the country the way it is. He is still trying to change it into a welfare state. If we do not elect a Republican President in 2012, it will be change from the top down, bottom up, inside out.
Isn’t this like the 20th thread on this subject?
I guess they figured out that Obama has finally run out of other peoples money.
2. It should have happened years ago.
3. at least one rating agency realized that all the smoke and thunder that came with the debt "crisis" deal didn't do very much to change things. All those spending cuts 7 years from now are like New Year's Resolutions.
Half the ones in the EU they mentioned got hundreds of billions of dollars from us in 2008. And they’re still having serious problems. How can THEY keep a AAA rating after all that?
It just doesn’t seem to make sense. Yes I know Congress didn’t cut spending, but that’s not the only factor. If it weren’t for hundreds of billions of us dollars to EU central banks in 2008 propping them up, and who are still having real debt problems still, I don’t see how several of them haven’t lost AAA status.
Not saying we don’t have reason to drop from AAA, just saying I don’t think many of the euro countries listed ought to have it either, given who’s floated them along the last few years. US dollars save eu country AAA ratings but not ours? That’s what it boils down to and it don’t seem right. NOt when most of those eu contries are still spending like nuts on social programs. Especially the UK.
...One wonders if Mister Obama still gives himself a B+?
They didn’t hall them before congress and berate them. Payback is a bitch.
I knew this president would be bad for the country, I just never thought he’s screw it in such a stunning fashion.
Another “historical” and “unexpected” moment for the Obama regime. DemocRATS are clueless.
Good points. However, the EU countries have higher economic growth rates and more employment than we do which helps lower their debt. Fox Business breaks it down nicely: http://www.foxbusiness.com/markets/2011/08/05/last-countries-with-triple-ratings-and-those-at-risk-losing-them/
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