Thanks Barack… Obama’s Record Deficits & Debt Will Likely Cause a Downgrade in the US Credit Rating
Posted by Jim Hoft on Tuesday, July 26, 2011, 8:44 PM
Just think, in 2007 the national deficit was $162 billion.
That was before Barack Obama tripled the deficit in a year.
The deficit will top a trillion dollars again this year. (The Captain’s Comments)
Now it looks like the credit rating agencies are likely to downgrade the US credit rating from AAA to AA.
The Daily Beast reported:
Only seven days stand between the U.S. and the effects of a credit default. But a downgrade of the nation’s stellar AAA credit rating seems a lot more likely, and a lot sooner.
The White House had been alerted repeatedly over the past month by rating agencies that without a strong, long-term plan to restructure the country’s debt, they would lower America’s credit rating as soon as this Friday, according to two officials familiar with the process. The White House was warned that the deal would have to be significant—and not a short-term fix over the next few days to avoid a credit drop.
Analysts with Moody’s and Standard & Poor’s, the nation’s top two rating agencies, declined to be quoted on the record, indicating that even benign statements about timing and ratings decisions can rattle markets and startle investors. But earlier this month, both agencies placed the U.S. government on notice of a downgrade of at least one notch, if not more, to a AA rating. In a written statement, S&P analysts said they believed “there is an increasing risk of a substantial policy stalemate enduring beyond any near-term agreement to raise the debt ceiling.”
On that point, both agencies have been right. Having gotten back on track last week, negotiations broke down again on Friday after Speaker John Boehner announced that he was backing out of White House talks because of a lack of trust. A frustrated President Obama held a brief news conference Friday afternoon calling the move “hard to understand.”
Efforts to raise the debt ceiling are back on track this week, but with decreasing good will between the parties. Senate Majority Leader Harry Reid had prepared a package carved almost exclusively around Republican demands, including major budget cuts and no tax revenues. Speaker John Boehner also crafted a package over the weekend that he could sell to Democrats, and perhaps more important, to his own caucus. But the parallel efforts indicate a widening divide between the parties and chambers, and a near-impossibility of bringing everyone together legislatively on one plan by week’s end.
Taking his message to the country Monday night, Obama stressed how unprecedented it would be to see a credit downgrade. If the debate heads much further, he said, “For the first time in history, our country’s AAA credit rating would be downgraded, leaving investors around the world to wonder whether the United States is still a good bet.” Just minutes later, Boehner responded to Obama. He didn’t mention the country’s credit, but accused Obama of repeatedly wanting “a blank check.”
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succotash commented:
Obama must not be too concerned as he is hell bent on spending over one trillion dollars this year. Every time he jets off on AF 1 it costs hundreds of thousands and the same with Moochelle jetting all over the country. Grifters do not give a damn when it is someone elses money. The whole bunch just make me sick!
bg commented:
++
that.
is.
the.
plan.
[scoll down, info links in comments]
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Militant Conservative commented:
What BG says, it’s the plan to spend America
Into european socialist box. it does not work nor
shall it ever work. Socialism has never worked
Anywhere at anytime deal with that fact.
Powder is dry
succotash commented:
BG I know,it just infuriates me and I feel so bad for our great country.
JimmyT commented:
I hope you guys aren’t buying this crap. I believe this is the socialist(in the rating agencies) attempting to push the repubs into doing a BAD deal. Hope they aren’t chicken enough to buy in. They know it’s a “bluff”. We have $200B coming in every month. $29B services debt. After SS, military, and medicare, they have about $40B left over. CUT baby CUT.
regularguy commented:
Someday good people will rise up to dispatch these pathogens who willfully harm our way of life. I hope it is by peaceful means, but I’m not so sure it couldn’t become worse if our electoral process is degraded by criminality.
rampart ranger commented:
The “Dock Their Pay” Balanced Budget Amendment:
The balanced budget amendment no politician will dare to vote against:
http://stumpedagain.wordpress.com/2011/03/30/the-budget-proposed-amendment-to-the-us-constitution/
“No member of the Congress nor members of their staffs shall receive any remuneration for any period of time for which no annual balanced budget has been approved by the Congress, and no retroactive remuneration shall be paid for any period in which no annual balanced budget shall have been passed. An “annual balanced budget” shall be defined as a 12 month plan in which authorized expenditures do not exceed revenues of the previous year by more than 1%.”
StrangernFiction commented:
CC&B or don’t raise the debt limit. That is the best chance to keep our AAA rating intact.
big L commented:
Or the feds could start divesting of the millions of acres of federal lands. Salazar has been declaring huge amts of land in thesest, Colorado area, as off limits to oil and logging etc
Sell it off, pay the shiny-pants bureaucrats off.
tommy mc donnell commented:
moody’s and standard & poor’s. aren’t they the ones that rated the sub-prime mortgages AAA?
Molon Labe commented:
When the interest rates go up watch hyper inflation kick in. Soon you’ll all be in the 250,000 bracket.
Obama will make you all rich.
Of course 250,000 won’t buy you a McDonalds.
Molon Labe commented:
I guess I’m showing my age but I can remember when Mickey Mantle earned 100,000 a year, more than the president-this was in about 1960. The average factory worker probably earned about 4,000 annually but the average working man lived pretty well. Coke was a dime, a pack of cigarettes 25 cents, a loaf of bread 30 cents.
Inflation today makes penny candy 25 cents. A dime coke costs more than a dollar. The 15 cent slice of pizza 2.00.
So when inflation hits us, and it is coming, watch what happened in Argentina in 1990, or Mexico, or Zimbabwe. Read about Weimar Germany in the aftermath of WWI. If you aren’t prepared you will suffer terribly. Worse political change will follow just as it happened in Weimar Germany.
Thanks to your politicians in DC not only today but for the past sixty years.
FedUp commented:
IMHO, BO is a domestic terrorist and should be impeached!
Black Sabbath commented:
Obama and Soros are killing us. Why aren’t we marching?
Rose commented:
With Boehner’s help! And Michael Steele as Boehner’s spokesman!!!
UGH!
Rose commented:
#14 – Well, BO ain’t exactly DOMESTIC, but he is a terrorist – a foreign infiltrator impersonator operative mole rat insurgent.
Rose commented:
#15 – That is exactly what I’d like to know.
The least we can do is make some local bureaucrats very uncomfortable on personal levels.
No more favored seating, or Parade Marshall honors, no more cutting in line at the store.
Maybe some highly concerned questions of them, how are they providing for their families when the people refuse to pay the fees that pay their salaries, or to come forward if things get so rough the politicians need to be defended from “ruffians” and street gangs!
For those ruffians and street gangs WILL surely come. They just won’t be TEA PARTY members. But they will be angry Socialists and angry “Entitlement Holders” who are feeling cheated.
Wasn’t there a Dim Congressman arrested at the White House Protests, yesterday???
Yes, here – Dim Representative Gutierrez of Ill. protesting in behalf of FOREIGN INVADERS
http://www.washingtontimes.com/news/2011/jul/26/rep-gutierrez-arrested-outside-white-house-during-/
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