Monday, August 8, 2011

Down Grade Is No Big Deal; But Spending Is!

Late Friday, Standard and Poor’s (S&P) announced that they had lowered the United State’s credit rating from an AAA to an AA+.  Moody's also followed suit with a down grade of their own.

In the real world, this reduction in credit rating is not a big deal. The stock market will be volatile for a few days or perhaps a week for investors to figure this out, but in the long run this reduction will have no lasting effect. The U.S. role in the World economy has not changed.

The only exception would be if the Obama administration intentionally creates a crisis.

As soon as the White House heard about the down grade, their spin machine was set into motion. They accused S&P of incompetence, they blamed Bush, they blamed the House of Representatives, they blamed the Tea Party, and they blamed the kitchen sink. Most of all, they blamed the House because of the drawn out negotiations to finally raise the debt ceiling in the eleventh hour.

You will note that they do not see themselves responsible at all. Nor did they point out that they had inherited an AAA rating from George Bush.

The down grade came as no surprise to those who were paying attention! The credit rating agencies had told anyone that would listen that the U.S. needed to cut spending by at least $4 trillion, in real spending, if we wanted to retain an AAA rating.

According to at least one S&P spokesman, the first bill PASSED by the House of Representatives and backed by the “Tea Party” would have met ALL the requirements. But as we all know the White House and Harry Reid declared it dead on arrival. Throughout the discussions on raising the Debt Ceiling, it was the Senate Democrats and the White House that stood as obstructionist’s and offered no plans of their own. And it was the Democrats that opposed all real spending cuts.

It has been made very clear that the only path back to an AAA rating must contain a ‘Balanced Budget Amendment’, because Congress cannot pass a bill that any future Congress or even by themselves cannot change.

Both parties are too blame for the massive debt. However, 80% of the current problem lies squarely on the shoulders of the Obama regime. A quote from S&P specifically said that Obamacare would require significant modifications to bring down the growing costs associated with it.

S&P never, in spite of the Democrats claims, stated that tax increases were needed and neither did Moody's.  In fact, one of their concerns was that we keep going to a relatively small number of sources with our ever growing taxation.

A GAO report stated that if we doubled the amount of taxes received from all current payers, we would still fall short of our annual expenditures by about ½ a trillion dollars.

It is the “Tea Party” that was pushing for a ‘Debt Ceiling’ bill that would have protected the AAA credit rating and moved the nation toward a sound financial policy by insisting that a ‘Balanced Budget Amendment” be moved through Congress and sent to the states.

The Democrats have been terrified by the grassroots ‘Tea Party’ movement and take every opportunity to attack them. “Why? Because that is what they do!” (line borrowed from Chris Plante/talk radio host).

However, if we are going to save this nation, Democrats, Republicans, Independents, Conservatives, and others had better adopt the ‘Tea Party’ values of getting back to the Constitution, while reducing the size and cost of the Federal government.

Ronald Reagan used to say, “The government is not the solution to the problem, the government is the problem.”

Never has that been truer than it is today. We have the EPA about to cost millions of jobs and trillions of dollars with phony baloney, Cap and Trade’ carbon regulations, Obamacare is already on its way to bankrupt the nation while destroying the best heath care system in the World, and there is the planned energy policy which will cost even more  jobs and kill the economy, just in case all else fails.

If you don’t believe that Obama wants to economically destroy America, ask yourself, If he wanted to destroy America’s economy and prestige, what would he have done differently? The answer is nothing would have been different!

No one could be that wrong or that stupid by accident!

Wake up People!  You have to be the ones that save America!

God bless the ‘Tea Party’ and all others that think like them.


U.S. Army (Retired) said...

There is absolutely no doubt in my mind that Obama and friends intend to bankrupt this country and that they intend to replace capitalism with a Marxist form of socialism.

Sid said...

I have asked the question—
Obama’s record is 100% aimed at destroying the America that I grew up in.

He needs to be locked down until a new President takes office in 2013.

Otherwise all is lost.

If he wins reelection, we need to seriously consider session!

Meggan said...

The Tea Party is the best thing that has happened in America since the end of WW-II.

Nel said...

Make no mistake, Obama is keenly focused on jobs—his aim is and always had been on destroying them!