United States of America Long-Term Rating Lowered To 'AA+' (August 2011)

Standard and Poors ^ | 05-Aug-201 | S&P

[edwinland]

TORONTO (Standard & Poor's) Aug. 5, 2011--Standard & Poor's Ratings Services said today that it lowered its long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA'.

...

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.

Our lowering of the rating was prompted by our view on the rising public debt burden and our perception of greater policymaking uncertainty, consistent with our criteria

[edwinland]

With Salon and other parrot blogs saying that Ryan "hit him [Obama] for a credit-rating downgrade that S&P essentially blamed on GOP intransigence," it is helpful to read what S&P actually wrote. S&P did not blame the downgrade on Republicans. It blamed it on having too high debt without the polticial agreement on either cutting spending or raising taxes.

Yes, raising taxes would be one way to bring down the debt, but NOT doubling the debt in the first place would have been an even more obvious place to start.

[b4its2late]

Revenue is there and will only improve when the economy is allowed to expand. It’s the govt expenses that have to be cut in order to have a real effect on the country.

[Son House]

Watching Bar Rescue, John Tapper explains “Businesses have to be profitable, profits comes from managing cost”

One cost for Business to manage would be higher taxes. How could the economy to grow if taxes are raised on businesses to pay for increasing government spending?

[GOPJ]

Thanks Obama - you and your ideas are turning the country into Detroit. And for that lame brain Chris Matthews, I’m talking about destruction and loss of jobs - NOT color.