Skip to comments.Ryan: 'Not surprised' by S&P downgrade
Posted on 08/08/2011 11:33:16 AM PDT by americanophile
House Budget Committee Chairman Rep. Paul Ryan (R-Wisc.) said he was "not ver surprised" by S&P's decision to downgrade the nations credit rating and said he would serve on the debt 'supercommittee' if chosen by Speaker John Boehner (R-Ohio).
"I'm not very surprised of this downgrade. We more or less saw this coming because we're on the wrong fiscal path," Ryan said on Fox News Sunday.
He said the decision was a warning shot that "Washington has not gotten its fiscal house in order."
Ryan also expressed concern that a rise in interest rates would add to the deficit.
"If we go up another point, it adds about $1 trillion or more over the 10-year window," said Ryan. "We'll find out tomorrow what kind of spike in rates we're going to get. But, obviously, not only does it hurt the federal government in its ability to close the deficits, but it hurts people. You know, car loans, home loans, all these things are going to go up."
S&P, the credit rating firm, reduced the nation's rating Friday from AAA to AA+. The firm said the recent plan to raise the debt limit while reducing the debt "falls short" of expectations and said they were "pessimistic" about the ability of Congress and the White House to reach a broader plan to rein in the deficit "any time soon."
Ryan said "both political parties are responsible" but said the nation's debt problems would not be resolved until the Democrats were willing to address serious entitlement reform.
"The president has been unwilling to put out a plan on entitlements," said Ryan. He added that in S&Ps view, entitlements were the "primary drivers of this debt."
"They brought us to this downgrade," he said of benefits spending.
(Excerpt) Read more at thehill.com ...
Paul Ryan Ping List!
Conservatives have said for decades , that this day would come.
We should do with this so-called “supercommittee” the same thing we should do with all the illegal Obama “czars”. And that is to not even allow it.
The supercommittee is just a pointless sideshow and everyone knows it. Until and unless we replace the Dems in the Senate with a CONSERVATIVE GOP majority and replace Zero, there will be no progress on entitlements, and thus on debt.