Hey...We Were Just Downgraded By S&P....Thanks BHO....Nice Job

[twyacht]

After a culmination of drunken Republicans, spending like sailors on leave, AND BHO and the Libs, which can't help but spend,.....

Standard & Poors changed our credit worthiness downward...

http://www.ft.com/cms/s/0/d6c97342-69bd-11e0-826b-00144feab49a.html#axzz1JvO8rjpT

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S&P sounds alarm on US debt

By Robin Harding and James Politi in Washington and Michael Mackenzie in New York

Published: April 18 2011 15:19 | Last updated: April 18 2011 22:48

Standard & Poor’s issued a stark warning to Washington on Monday, cutting its outlook on US sovereign debt for the first time and throwing more fuel on the raging debate over America’s swollen deficits.

The agency kept America’s credit rating at triple A but for the first time since it started rating US debt 70 years ago, cut its outlook from “stable” to “negative”. A negative outlook means there is a one-third chance of a downgrade in the next two years.

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Doubts about US creditworthiness could threaten the dollar’s use as a global reserve currency amid the rise of rivals such as China that have better growth prospects and fewer fiscal challenges.

“This, at its core, is questioning what was an unquestionable tenet of the financial markets,” said Guy LeBas, chief fixed-income strategist at New York broker-dealer Janney Montgomery Scott. He said the chance of a downgrade represents “a higher risk level for the Treasury market than at any point in the memorable past”.

The outlook cut highlights the damage to US creditworthiness from a decade of unfunded tax cuts and spending increases followed by massive fiscal stimulus during the recession.

The US will have a deficit of 10.8 per cent of gross domestic product during 2011, according to the International Monetary Fund, and net government debt will exceed 70 per cent of GDP.

The cut also reflects deep uncertainty about whether the polarised US political system is capable of thrashing out a deal to tackle the long-term fiscal costs of an ageing population.

****

1/3 chance? I put it at 50/50....

[BAC]

The outlook cut highlights the damage to US creditworthiness from a decade of unfunded tax cuts and spending increases followed by massive fiscal stimulus during the recession.

There's the spin...IT'S BUSH'S FAULT!

First of all, "tax cuts" are not spending.  It's our money!  Second, the tax RATE cuts increased economic activity, which had the net effect of increasing revenues to the federal government.  I guess they funded themselves, huh?

Can't argue with the parts about spending and "stimulus" though.

[MikeBjerum]

I just "love" hearing that phrase "Unfunded tax cuts." 

We have been living with that spin in Minnesota much longer than most of the nation.  Our pro wrestler Gov. decided to do a tax rebate because of the huge "rainy day fund" we had.  After he gave money back to those that paid taxes there was an outcry for those that didn't pay taxes, including many that were in prison, because they didn't receive any.  So the next year instead of doing a tax rebate they just handed the money out.  The problem was that those in the other branch decided that since we had enough money to give some back we could spend like drunken ... errrrr .... ah... damn pirates and sailors around here ... spend like drunks at a strip club 

Pres. BHO is like a kid with daddy's credit card in toyland, and now the financial markets are finally calling him on it.  Is it possible that now he will take his financial position serious?

No he won't!  When I heard this on the radio this afternoon, the "chosen one" was talking about the positives in the B - Slapping S&P gave us 

[philw]

I heard on the radio yesterday that they are worried that there is a possibility that the US might default on there loans

[JC5123]

At least they put the blame in the right place, by saying that it is politics that is getting in the way of fixing our financial problems. A fine example was how quickly the Dems caved to the Reps budget cuts when abortion funding was threatened. Dammit people, they need that money to buy their offices every election!!! 

[Sponsor]

[kmitch200]

This whole financial mess could be fixed in a few years if WE THE PEOPLE excercised due diligence over our politicia....Hey look! American Idol is on!

 

[tombogan03884]

Reagan proved that there is no such thing as an "unfunded tax cut" every time he cut the business tax revenue increased because business had more money available for growth and less incentive to hide it from a greedy tax man.
This in turn lead to higher employment and greater revenue from income tax collections.

[Pathfinder]

I heard on the radio yesterday that they are worried that there is a possibility that the US might default on there loans

We will default, there is no doubt. I heard this yesterday - If the US spent nothing from this point forward, and paid $100 million per day to pay off the debt, it would take 300 years to pay off the debt. There is no way to pay that off.

We need to default on the debt to the Federal Reserve (which is neither), re-issue the US dollar on a new, stronger base something other than just fiat currency), and use the new money to pay off the bond-holders and then - maybe - the foreign debt holders.

Oh, yeah, and issue the Mussolini solution to those in DC and elsewhere who thoroughly deserve it.