Despite Washington's Best Intentions, The US Credit Rating Has Been Downgraded
The TEA Party was singled out for causing the credit downgrade that will cost Americans a substantial portion of their standard of living in the future because of higher interest rates on the debt. There is one problem with this latest blame game; the Tea Party didn’t cause the downgrade, they kept it from being worse.
Standard and Poor’s warned us that our debt to GDP ratio had to come down for months. In other words our debt was rising faster than the GDP and you can’t have a debt larger than your GDP and expect to have a AAA credit rating; fair enough, we were warned. Obama, the genius of economic theory, decided we only needed to raise the debt ceiling and increase taxes, then our silly credit rating issue would go away. Like having poor grades in college, if no one sees them, what does it matter; it’s the same type of philosophy. Except for one small issue, not all financial institutions are in Obama’s back pocket like the proverbial parasite Goldman and Sachs; some of them are independent and actually perform meaningful and honest services. Standard and Poor’s rates governments’ credit worthiness all over the world, the US has now suffered its first downgrade in history, an exemplary example of government dysfunction.
In fairness to Democrats, they see increases in taxation as the generic solution to all problems. They will push for greater tax rates or the more benign term, revenue increases whether we have economic problems or periods of prosperity. (Increase taxes during prosperity and it doesn’t hurt. When there is a struggling economy, we must increase taxes to fix the problems.) Like a broken record, the increase taxes chorus drones on; thus we have come to expect precious little from the Democrats as far as real solutions. It is easier to keep a recording of “Increase Taxes” quotes from Democratic leaders and play it intermittently while discussing economic solutions and Democrats can attend to more pressing matters like presidential fund raisers.
There is one glaring problem with this latest economic disaster, the Republican big shots were in a state of denial concerning the real issue. Standard and Poors said we needed a four trillion dollar reduction in our deficit to maintain a AAA credit rating. They didn’t say raise the debt ceiling and increase taxes, then the problem will go away. No, not at all, that type of solution makes the problem worse on two fronts: the debt to GDP ratio becomes worse and the increase in taxes will decrease the GDP by pulling money out of the GDP pool.
Again the real problem was: a debt to GDP ratio and who worried over the deficit or the debt? Those pesky freshmen congressmen that received a mandate from the TEA Party are the terrorists that kept wanting to reduce the debt. Now what would have happened if the leaders from both parties and Fearless Reader would have listened to these terrorists and reduced the deficit? (Standard and Poor’s was asking for a four trillion dollar reduction; dumping Obama Care would have been a great first step.) We would not have had our credit score downgraded. But they were bastards that kept congress and our president from pursuing elusive rainbows that meant nothing concerning our credit score.
It’s a hard fact of life that real financial institutions that don’t have a parasitic relationship with the president, i.e. Goldman Sachs, don’t care a flying fart for meaningless phrases and inane platitudes, it is their sole purpose to perform a real service in the economic community. What a shock for Obama, real business going on when he has all the government money to throw around and reward loyalty.
For the first time in our history, our credit rating has fallen down the outhouse hole and still we aren’t taking the measures to correct the situation. Obama prefers to accuse the messenger of could deeds and blame the TEA Party for creating the high Obama Drama that was meaningless except for political posturing.
It is obvious Obama and our congress is still posing and accusing each other of malfeasance, but in an objective analysis, they should be thanking the TEA Party for keeping the credit downgrade from going even lower. Because the rest of them might as well be trying to fart a symphony in a typhoon for all the help they provided with the credit rating.
