Skip to comments.Why S&P Really Downgraded US Credit Rating (vanity but linked to their report)
Posted on 08/06/2011 4:04:09 AM PDT by SkyPilot
As I was watching the "spin" on MSNBC, CNN, and almost every other cable show last night regarding S&Ps decision to downgrade the soverign US credit rating for the first time in our nation's history, it was amazing to me that every liberal commentator and every Democrat appearing on the shows avoided the monster in the room at all costs:
Entitlements are breaking the back of this nation. During the debt deal and its aftermath, Democrats made it clear they would not budge (or even address) the crippling effects of Medicare, Medicaid, or Social Security.
S&P's report did - right up front. In fact, it mentions Entitlements as the biggest problem.
Funny how the Lamestream Media missed that language, considering it is on the front page of the PDF document that S&P released on Friday night.
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. 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. ...Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements, the containment of which we and most other independent observers regard as key to long-term fiscal sustainability. Our opinion is that elected officials remain wary of tackling the structural issues required to effectively address the rising U.S. public debt burden.
Everyone who has a brain knows we have to cut Entitlements, but no one will do it. We now have one in seven Americans walking around with a Food Stamp (now called SNAP) debit card in their back pocket. We have millions of people collecting Social Security checks and SSI disability. Parents of children with mild ailments such as heart murmurs or sleep apnea have learned how to get their children classified as disabled so that they collect checks for life. Illegal aliens have sucked the Medicaid fund dry. Some inner city minority populations depend on government direct deposits in the form of AFDC, daycare cash payments, nutitional assistance, special minority loans for business, and Section 8 housing for almost all of that community's income. Unemployment payments have now reached half a Trillion dollars since Obama took over - half a Trillion for people not to work.
What will Washington do? It looks like they will slash miltiary veterans programs, decimate the Defense Budget, and freeze military salaries come November.
This will do almost nothing to stop the implosion, but because Entitlements are "off the table" - our Government will appear desperate to convince the public it is doing something.
This is the beginning of the end. I am filled with a deep and abiding fear that nothing will be done until the whole system collapses.
And the cause of it all will be a segment of Americans and worthless politicians who were motivated by nothing more than pure envy and greed.
"The righteousness of the upright will deliver them, But the treacherous will be caught by their own greed."
people sure have alot of problems learning that SS is NOT an entitlement.. it has been used like a govt person checking account
Right after your bolded sentence is this:
“or on reaching an agreement on raising revenues”
As far as S&P is concerned either will do. Cut spending or increase taxes. You don’t seriously expect Dems to “see” the problem as excessive spending do you? There will be more and more calls for taxes.
Preach it brother!
If you do the same with Medicare, Unemployment Insurance and Workman's Compensation System, it only gets worse.
I remember when the big issue with Social Security was what to do with it when it'd completely consumed the entire US debt burden and had cash left over to invest somewhere else.
That was right after the Reagan Era changes.
The Democrats sure answered that didn't they ~ they simply dipped into the kitty and spent it on all sorts of nonsense.
Only some will benefit from it. It is not an "earned" Entitlement. There is no money in a "trust fund."
Because so many people receive direct deposit Social Security checks, our politicians will not address how it is killing our nation. In order to protect Social Security, veteran's and active duty military health insurance (TRICARE) is under attack. If a veteran who served in multiple combat zones has not "earned" anything that cannot be slashed, then millions of Americans who draw Social Security because they now are still breathing are subject to the same fiscal laws of nature.
Your attitude is indicative of the problem: people think they "paid" into Social Security, and they want money back. Social Security was nothing more than a tax, and the revenues from that tax have long been spent. See debt: $14.5 Trillion Dollars.
I might as well ask for all of my State, Federal, and local tax money back into the "SkyPilot fund." There is no 'there' there.
We will go into the abyss because people wanted "their check."
Cutting Social Security and Medicare, but leaving the Unconstitutional Department of Education in place, does not make any sense.
Get rid of all unnecessary departments - then AFTER that is ALL DONE, see if any reductions are needed in SS.
Otherwise, SS will just get decreased every year (like it has been because COLA has been denied) in order to pay for more Federal employees.
Think of what S&P is up to as a manifestation of another stage in a broad based criminal conspiracy.
skypilot, I am surprised you can even tie your shoes
I guess you can tie your shoes
take away all the freeloaders that never paid a penny into the govt has give it too
“spent it on all sorts of nonsense.”
Even worse, they used (and are using) it just to make the loan payments on even MORE money to spend on even more nonsense.
And, really- that’s our debt problem in a nutshell.
This was one facility. I am sure it went on in every federal department.
I am sure Social Security is paying claims they should not be paying. We all know medicare gets scammed.
Getting the fraud eliminated everywhere could go a long way to getting us back on track.
Comparison of nObama’s first year and current year
U.S. Federal Government Spending Comparison, 2008 and 2011
Figures given in billions of U.S. Dollars
Category_______ FY 2008 FY 2011 INC/(DEC) INC/(DEC) %
U.S. Federal Government Revenue Comparison, 2008 and 2011
Figures given in billions of U.S. Dollars
Category_______________ FY 2008 FY 2011 INC/(DEC) INC/(DEC) %
Ind. Inc. Tax___________1,145.8__956.0___-189.8_____-16.56%
Corp. Inc. Tax___________304.3____198.4___-105.9___-34.80%
Social Ins. Taxes________900.2____806.8____-93.4____-10.38%
Fees & Charges___________0.0________0.0_____0.0
Bus & Other Rev__________33.6_____79.5_____45.9___136.61%
Social Security is part of the first number, Pensions.
You want the breakdown of Pensions for 2011 ? Here it is:
Federal employee retirement and disability (602)_____________$127.1
Social security (651)_________________________________________$748.4
Employer share, employee retirement (on-budget) (951)_____($67.1)
Employer share, employee retirement (off-budget) (952)_____($15.1)
Please help me to understand -
FEDERAL EMPLOYEE RETIREMENT AND DISABILTY COST 16% OF EVERYONE’S SOCIAL SECURITY PAYMENTS ?
Just how many Federal employees are retired and at just what pay ?????
And there is NO TALK OF REDUCING FEDERAL EMPLOYEE PAY OR BENEFITS.
that would be one good step
“...reaching an agreement on raising revenues is less likely than we previously assumed”
They assumed that the government MUST now understand that the game is over. Wrong. Watch now the tragedy unfold.
The War on Poverty, several "Education" Presidents, a couple of Bridges to "Shovel Ready" projects (aka Jobs) and gratis cellphones, etc., have all shown little results except those are now "rights."
You can’t explain to a entrenched parasite that he is not entitled...it makes absolutely no logic to him at all. Nice try tho...
Also, and related to your post, is the fact that no one yet knows who will be on the 12-member committee called the “Super Congress,” or how they will vote on various issues. It can all go whichever way they want it to go, with no Tea Party to rein everything in.
That is called uncertainty. Our chance to make a decisive move to head off disaster has passed.
Just as Obama makes end runs around Congress, Congress has made an end run around the Tea Party.
Tie your shoes.
Too bad that the ‘Taxed Enough Already’ movement was tagged as a ‘PARTY’.
How come there are ‘INDEPENDANTS’, but no ‘Independent PARTY’????????????
They could expand that “other” category that increased nearly 60%. We’d like to know what’s included there...but that may be too ‘transparent’.
Zuckerberg and Gates and other people like them will do a better job at improving education than the government. Let’s foster that philanthropic movement, even if we may not agree with the philanthropists on all points, and we could make the Education Department a useless fossil.
Read it and weap...
Or even better, weep !
Well, it’s really the Tea Party movement, not the Tea Party Party. I’m not sure I get your point.
There is an Independence Party in New York State, and it has two functions: to allow Democrats to vote for the Republican running on both the Republican and Independence lines without having to touch the Republican lever, and to confuse the voters who would like to be unaffiliated so that they pick the Independence Party in ignorance.
It is not an “Entitlement” when youu paid for it. It is only an “Entitlement” if you are getting the benefits for nothing. I PAID. I want what is rightfully mine.
Childhood education is the responsibility of parents.
Public schools started being formed in large numbers in America in the 1800’s in yet another misguided attempt at government to “help” citizens.
Every State regulates education with some sort of State Board of Education and is staffed by countless goofball PhD’s on the State payroll who profess to know how best to educate children.
The Federal Department of Education is also staffed with countless goofball PhD’s who profess to know how best to educate children.
It’s the redundancy of goofball PhD’s that provides the opportunity to LET THE STATES RUN THEIR OWN EDUCATION SYSTEMS. How can Federal goofballs know any more than State goofballs ?
As far as letting filthy rich psychopaths dictate how children are educated - I would not recommend that for anyone.
The rest of the problem is that the folks who really got ripped off are unlikely to march on Washington - it is those who haven't been paying, but have been collecting anyway that will pillage and burn the country.
Coming soon - uncontrolled inflation. SS checks won’t be much use even if they are tied to inflation.
there will be a call out for body bags, and they will be filled with bodies that are 2 generations apart
My point is that the Democrats, RINOs and the MSM can use the term: TEA PARTY - as if it is an organized entity with State, local and national leadership with power players in DC.
The TEA movement is comprised of citizens who adhere to the Constitution. Many Americans don’t even know they are TEA people and the MSM is determined to keep it so.
The answer is the freeze spending solution. No one get’s more dollars than they got this year...a real freeze, not a “this year + 7.5% increase” fake freeze. 2012 they get the same amount. Period. They will find efficiencies or struggle at the end of the year.
Reduce spending each year 1 or 2 percent (dollar amount and not baseline 7.5% fantasy). The money is there.
In one year we’d control spending; in 2 years we’d have real cuts; and in 2 quadrennia, we’d have a balanced budget.
8 years to get out of the hole.
ObamaCare must be rescinded...there is no money for it. Entitlements would have to be reformed. (Increase retirement age to 70 or 72). Welfare and Medicaid would have to be based on “work for money.” with WPA type projects. Medicare would have to have annual minor medical caps....routine doctor visits, medicine, end non-MD therapy treatments (chiro, massage, “natural”, etc),
I agree, everyone should be issued a check equal to exactly what they paid into the system, then social security and medicare should be shut down.
SOCIAL SECURITY/MEDICARE ARE NOT ‘ENTITLEMENT’ PROGRAMS.
It is a program that people PRE-pay into for 50 years before they can use it.
And Medicare: health insurance PRE-paid for for 50 years and THEN, over $100 a month premium, a yearly deductible, 20% co-pay and office visits are not covered.
The program would be solvent had the gov’t not EMBEZZLED trillions from it for other purposes - and did not the gov’t now rob from it to give to millions of young people who have paid little to nothing into it - people perfectly capable of working, but who sit on their lazy arsess collecting a monthly check, food stamps and ONE HUNDRED % medical. NO premium, NO deductible, NO co-pay, office visits covered - AND free counseling (not covered for seniors.) All these people need to be - or claim to be - are current/past alcoholic/druggies/”bi-polar” etc.
These people's largess should not be robbed from Social Security/medicare funds.
Gov’t should be made to repay it's notes to Social Security and the interest built in would keep it solid. Remember, not everyone lives to collect SS, and many not for long.
Separate the SS/med. funds, pull the mooches funds from general and start cutting out the fraud and waste.
But SOCIAL SECURITY is NOT a ‘freebie’ program for seniors. They've paid the dues ahead and are still paying into medicare.
SS is a tax, plain and simple. The SCOTUS has already ruled (Flemming v. Nestor) that we are NOT entitled to payments and that Congress can repeal the Act, anytime it wants.
That said, why then are payments taxable? We are being taxed TWICE. The solution is simple:
1. Eliminate Depts of Energy, Education, HHS and HUD. Also EPA, BATF, OSHA, FannieMae, FreddieMac.
2. Cap all federal employees, elected or appointed, to $100K/yr.
3. Cut 25% of all Versailles employees.
4. Reduce Congressional staffers to 3 per member.
5. True up Medicare to SS eligibilty and eliminate Medicaid.
6. Repeal DeathCare, Davis-Bacon, Baseline Budget and Sarbanes-Oxley.
7. Cut personal Federal income tax to 10%, with only deductions for dependants. Corporate rate cut to 25%.
8. Eliminate all Foreign Aid, including UN contributions.
9. Elect Sarah Palin the next President of the US.
10. DRILL, BABY, DRILL.
THEN we can talk about more serious cuts.
Damned excellent suggestions!
"exactly" - So, if you had put away money every paycheck for 50 yrs into a private savings account at your bank, you'd be fine if the bank then kept all the interest accrued over the years as they got to use that money and make a fine profit on it - and THEN also kept the interest that should be yours? and all YOU get is the money you put it?
Somehow, I think you'd scream bloody murder.
Thanks!! Bookmarked the site..
All excellent ideas...that will never see the light of day.
It’s not “private”. Jees your acting like government is benevolent.
How much have you currently received, I will get nothing as I continueto “invest”.
Didn’t see it last night but I’m waiting for a liberal pundit to arrive at the conclusion that S&P is a racist/terrorist organization.
The goal is to end the bleeding, yes... it would cost the government a fortune to issue checks = all everyone ever paid into the SS and medicare system + interest, but at least then the programs could be ended and the financial healing could start.
So, the people who started receiving it in the 1940s paid into it for 50 years?
It’s not insurance...never has been.
Either Social Security and Medicare will be means-tested, or the government will go bankrupt. Those are the choices. It’s looking like it’ll probably be the latter.
sometimes to save the patient... you have to remove an arm or leg.
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