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Since Standard And Poor's (S&P) downgraded America's credit rating, Democrats have been searching for the correct political spin to put on it. First, the White House said S&P made a $2 trillion mistake and our credit rating should not have been downgraded. President Obama, in apparent denial, said, "we've always been, and always will be, a AAA country", even though we are now a AA+ country. Then the next day, several top Democrats David Axelrod, Sen. John Kerry (D-NVA), Howard Dean) blamed the "fake" downgrade on the Tea Party, leaving us with a bizarre Democrat mixed message - 'the downgrade is fake and incorrect,...and it's the Tea Party's fault !!!' Go figure.
I will update you once we have an official phony Democrat position on the matter.
Despite the inability of Democrats to deal with reality, here's the actual reason S&P downgraded America's credit rating:
The nation's credit rating was cut to AA+ after S&P said the compromise made by Congress and President Obama this week to cut spending and boost the debt ceiling "falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics."
S&P's statement was blunt in its assessment.
"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," the ratings firm said.
"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," S&P said.
Since April, S&P has repeatedly warned the U.S. rating was at risk if Washington did not agree to reduce deficit spending by $4 trillion over 10 years. This week's agreement would cut spending by about $900 billion and create a joint congressional committee to find $1.5 trillion more by Thanksgiving.
Democrats may want to blame that on the Tea Party, but it flies in the face of the facts for several reasons. First, House Republicans passed a budget (the Ryan budget) that would have kept our credit rating intact. Senate Democrats rejected it. Then House Republicans passed the Cap, Cut, and Balance plan that would have kept our credit rating intact. Senate Democrats rejected it. And let's not forget that President Obama wanted to raise the debt limit ceiling in April with no spending cuts or revenue increases. It's only because of the Tea Party that any deficit reduction measures were attached at all. Then add in the fact that congressional Democrats haven't even produced a budget in something like 830 days.
Blame the Tea Party ? Screw that. Let's put the blame where it belongs, on the Democrats who would have passed a debt limit ceiling increase without any deficit reduction included. It's our DEBT problem that S&P is looking at. Let's also not forget that liberals are calling for MORE debt, more borrowing, and more stimulus spending, like crazy people. Here we are in an economic crisis that was brought about by too much debt, facing a future not knowing how we will cope with the coming debt, and liberals are saying the solution is yet more debt. They are like the drunk who thinks he can sober up by having more drinks. Send them to bed so they can sleep in off, but leave them out of any serious policy discussions.
Rep. Ron Paul (R-TX) has the goods on the downgrade:
“This attempt to scapegoat [Tea Party] folks who recognize that our debt is out of control and that we must change course should not be tolerated,” the elder Paul said in a statement released Monday. “They are simply demanding that Washington do its job.”
“We were downgraded because of years of reckless spending, not because concerned Americans demanded we get our finances in order. The Washington establishment has spent us into near default and now a downgrade, and here they are again trying to escape responsibility for their negligence in handling the economy”.
Bingo. I don't know how many canaries need to die in our economic coal mine before we face the facts. The Dow dropped 635 points yesterday.
There's a quote that goes, "In an insane world, the sane man must appear insane". I think about that quote every time I hear liberals call Tea Partiers extremists in a country that is $14.5 TRILLION in debt, with a $1.6 TRILLION deficit, as if the Tea Party desire to balance the books is some radical notion. It's surreal. For too many liberals, the insane has become sane.