S & P Downgrades Unitied States Credit Rating From AAA to AA+
From StandardandPoors.com:
Overview
· We have lowered our long-term sovereign credit rating on the United
States of America to ‘AA+’ from ‘AAA’ and affirmed the ‘A-1+’ short-term
rating.
· We have also removed both the short- and long-term ratings from
CreditWatch negative.
· The downgrade reflects our opinion that the fiscal consolidation plan
that Congress and the Administration recently agreed to falls short of
what, in our view, would be necessary to stabilize the government’s
medium-term debt dynamics.
· More broadly, the downgrade reflects our view that the effectiveness,
stability, and predictability of American policymaking and political
institutions have weakened at a time of ongoing fiscal and economic
challenges to a degree more than we envisioned when we assigned a
negative outlook to the rating on April 18, 2011.
· Since then, we have changed our view of the difficulties in bridging the
gulf between the political parties over fiscal policy, which makes us
pessimistic about the capacity of Congress and the Administration to be
able to leverage their agreement this week into a broader fiscal
consolidation plan that stabilizes the government’s debt dynamics any
time soon.
· The outlook on the long-term rating is negative. We could lower the
long-term rating to ‘AA’ within the next two years if we see that less
reduction in spending than agreed to, higher interest rates, or new
fiscal pressures during the period result in a higher general government
debt trajectory than we currently assume in our base case.
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The question on over the weekend for Monday’s market opening is.. How do the American people feel about this downgrade. That will answer the question of where we head in the country.
If the American people believe that this hurts them economically because they will be taxed more through paying higher interest rates on their credit cards, higher prices at the pump, clothing and food stores.
America wants a leader.. Will some one please lead this country on the path of prosperity. We are broke, and headed toward bankruptcy. Ask any small business man in America.. We are not growing we are headed to bankruptcy. Every person who pays taxes in this country will fell these effects.
Please help.. we can right this ship but we need leadership.
How about trying “Cut, Cap and Balance” now Senator Reid?
You jackasses (symbol of your party) wouldn’t even debate the issue …maybe a better symbol for your party would be the ostrich with your head in the sands.
Thanks John and Mitch for your wisdom in supporting Harry and Nancy in demonizing the true patriots to further your statist agenda—we should be so proud of our leaders in DC for ignoring reality………….
Ok, I get it but we must do more than demonize those who caused this mess or we can do something to improve the future of this country by changing the direction of this country.
To those seeking our support for elected office, I ask you.. What would you do? Where are your solutions? This is not about the President alone.. the Congress, both houses, allowed this to take place on their watch.
So tell me, Sir and/or Ma’am what is your plan to make Americans prosperous again and the economic envy of the World? That is how you encourage investment rather than debt to support the programs necessary to continue growth in this economy.
we here in Monmouth can now campaign on : “Monmouth County Under Republicans: A Better Credit Rating than the US of A!”.. seriously, I am devastated, once again, at how these people are destroying everything free and positive about this land on a daily basis, and if we do not all RISE UP very soon and DEMAND better, now, not 1,10, 20 yrs. down the road yet again, we are over, and really, largely through our own neglect and silent concurrance over too many years, now.. am glad Rick Perry, whether he’s our answer or not, is actually leading a prayer rally for this nation-in-crisis, today!.. we need all the help, and pray God, fearless leadership, we can find!
Bellew is blathering a lot. Maybe she’s thinking of running again; switching places with Anna. since Bellew was the chairwoman of a failed campaign, maybe she thinks Anna would make a better chair since she couldn’t get her nutcase friend Anna elected, maybe she thinks twice is the charm.
Oh well, birds of a feather.
Sounds to me as if S&P was looking for the type of plan that 70% of Americans are in favor of:
–cuts in spending
–close tax loopholes
–end the Bush tax cuts for the top 1% which they should not have gotten in the first place.
From the National Review:
But one reason S&P said it had become more gloomy was that it had revised its assumptions about the most likely course of fiscal policy. In previous projections, it said, its “base case scenario” had assumed that Bush tax cuts for the wealthy would expire at the end of 2012, while tax cuts for families earning less than $250,000 a year would be extended. That, it said, would have reduced deficits about $950 billion over ten years.
But the new S&P base case assumes that Congress extends all the Bush tax cuts. “We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act,” S&P said.
Who is John Galt???
Tax reform now …. end all tax loopholes; simplify the tax system to a flat rate; why should 51% of the people pay NO federal income tax at all? End progressive taxation; everyone pays the same percentage; the more you make, the more you pay (no more loopholes) AND the more you keep.
End double taxation on corporations and the stockholders.
Cut spending by at least 6 to 8 trillion dollars over the next decade; if Europe and Asia want our troops there to protect them, let them pay all the costs or bring them home.
Let Iraq pay for the liberation of their country with their oil revenues, likewise this new adventure in Libya – let them reimburse our treasury for the assistance we gave (and are continuing to give). Afghanistan has a load of drug revenues we should seize as compensation.
Pass the Balanced Budget Amendment with safeguards for national defense and security.
Eliminate the Department of Education.
Eliminate the Department of Energy (move nuclear power programs to Dept of Defense)
Eliminate the Department of Health and Human Services
Eliminate the Department of Housing and Urban Development
Eliminate the Department of Agriculture (any programs judged ‘absolutely essential’ move to Department of Interior)
Eliminate the Department of Transportation (any programs judged ‘absolutely essential’ move to Department of Commerce)
Eliminate NASA and the Corporation for Public Broadcasting.
How’s that for starters ? See, that wasn’t so difficult.