Posted on 08/05/2011 5:58:18 PM PDT by jimbo123
Standard & Poor’s took the unprecedented step of downgrading the U.S. government’s “AAA” sovereign credit rating Friday in a move that could send shock waves through global. The following is a press release from Standard & Poor’s:
– We have lowered our long-term sovereign credit rating on the United States of America to ‘AA+’ from ‘AAA’ and affirmed the ‘A-1+’ short-term rating.
– We have also removed both the short- and long-term ratings from CreditWatch negative.
– The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics.
(Excerpt) Read more at blogs.wsj.com ...
This may NOT be a bad thing. America as we know it has created a professional politician class, that does not require any intelligence, just a low cunning, and a missing moral compass. This profession is the only one that can offer itself a pay raise without ever having to create the company. Perhaps it's time to take out the trash.
When the shooting and burning stops, we must remember how we got all these piles of rotting meat.
If we get the opportunity to reset, item one must be that people who want to be elected to power are the lowest swine bred. They should only be paid just enough to keep from starving quickly, and should weekly be pelted with human manure to remind them of their worth to society.
I'm happy to say my Rep, Duncan Hunter, voted NO.
It is not a good thing. It makes it harder for you and I to go into debt, but that also makes it harder for people like us to raise capital and start a business to hire more people and grow the economy. It won’t stop the government from spending like drunken sailors.
If the Democrats had gone along with the Tea Party MODEST demand to cut $4 trillion over 10 years this would have been avoided. Instead the two parties went for $2.4 Trillion, but now will eat about another $1 Trillion in debt expenses. The difference is a mere $60 Billion a year when you factor in this additional downgrade cost. The Democrats have basically caused us to piss away $100B a year in interest payments we didn’t need to pay. That money is going down the tubes and won’t help any poor person or needy person.
Instead of $4 Trillion, by voting for $2.4 Trillion they got $3.6 Trillion which includes $1 Trillion of additional waste!
That news was before S&P came out and publically released the news of the downgrade late this afternoon. The did decide to review the analysis earlier when the news was about to come out, and S&S decided they were right, so they released the downgrade news. obamma is the first president to suffer through a credit rating’s downgrade.
U.S. Rating Cut by S&P on Deficit Reduction Pact By John Detrixhe - Aug 5, 2011 9:09 PM ET
...though surely they knew it right along with everyone else and I'd guess, given Mike's proximity to the industry and Obama's coziness with Mike, even before.
Anyway, as I'd pointed out on another thread, a nice Ramadan gift to our enemies.
ditto.
“suffer”
0bama is suffering?
If any of you can pay off your house, do it! paper money is worthless but the house you live in is worth everything.
You are WRONG! The elite repubs should NOT have done what THEY did. They, Boehner and McConnell swhere told my the people any number of ways NOT to raise the debit limit and they did. Now they see how WRONG they were.
Working towards is not working to cut spending, it’s kicking the can down the road in hopes things will fix themselves.
Not a cent to the Repubs but to the Tea Party only!!
Somebody's already threatened to break S&P's kneecaps.
A ratings downgrade does not make it harder to go into debt. It makes it more expensive. And a Dem Senate will say so what. This ratings downgrade will add another 1/2% to our borrowing costs and our current interest payments on the debt. That is another 70 billion a year in spending.That is not a good thing. What the ratings downgrade will do, however, is draw focus from the public on the spending problem and perhaps pressure Congress to get serious about it.
Well, I guess all is lost. I feel sorry for anybody carrying debt in this situation. But I’m not sure the cost of borrowing will go up much. I don’t think there will be any demand. Some think we will face inflation but I can see deflation coming. Then again, I’m just guessing , just like all the so called experts.
I am not wrong. We need to replace DEMOCRATS FIRST. RINOs need to be replaced, too, I agree—but the Republican party has plenty of good men and women.
Allen West is a damn good conservative. He supported a flawed deal that did SOMETHING, though not enough.
Sowell has been a conservative leader for years...should we throw him overboard? I don’t think so.
My point is this: the DemonRATS really want us to attack each other and not HUSSEIN. I say we keep focused on the REAL reason for our current debt problem. That is on the shoulders of the Hussein/Pelosi/Reid spending cult... Every Republican currently in Congress voted AGAINST their plans.
Not all of the Republicans deserve re-election, but EVERY SINGLE DEMONRAT DESERVES TO BE DEFEATED. If we end up fighting each other, we’ll not get rid of the Demonrats.
It's the SPENDING, not the Debt ceiling that's causing the downgrade. The Tea Party has been advocating reducing spending, thus reducing the overall debt load of the country. The GOP needs to get all over this issue like white on rice.
The House, under Boehner, passed “Cut, Cap & Balance” — this downgrade is all on the Reid’s do-nothing SENATE and Obama.
Deflation is possible because the big companies will now try to kill off whatever competition they have left. They can afford to run margins down, like the old Standard Oil did, to quash competitors. Back in the day Standard Oil could pay 5 cents a can of oil but sell it for 4 cents a can in some markets until the local competitor went broke, at which time Standard bought them up for pennies on the dollar.
So yes deflation is possible.
If you have fixed debt, perhaps inflation is good. Revolving credit is bad as rates climb and anyone needing to refinance could be in for some trouble.
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