What’s the problem? It just makes it harder to go into debt. I see it as a good thing. Take the crack away from the addict.
Actually the crack just became more expensive.
Not really.
If the statist are unable to borrow, they will simply raise taxes. That’s hurts us.
If they are able to lend, it will be at a much higher interest rate, which they will pay by taking on additional debt and by raising taxes.
Either way, you and I are both screwed. No dinner. No caressing.
This has been the plan all along. It is part of destroying America’s prosperity and the last, frail vestiges of the free-market system that enabled that prosperity.
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!
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.