The actions by Standard and Poor’s to downgrade America’s credit rating from AAA to AA+, wasn’t unexpected. The S&P warned about it, the Tea Party fought against it, but Congress passed it anyway. The debt deal gave Obama a $2.4 Trillion increase in spending. We fought against an increase in the debt ceiling, unless there were significant cuts in spending. We didn’t get that.
The Obama Regime quickly pointed out there was $2 Trillion math error on S&P’s part. So what’s the difference between 2 Trillion and 14+ Trillion? You’re still spending too much.
So now, S&P downgrades the United States of America’s Credit rating! Who’s the blame? The blame lays on Obama and the Socialists Democrats, and Republicans in Congress. An attempt to blame anyone else is not dealing with reality. The reality is since Obama’s inauguration, there hasn’t been a budget passed, spending had increased during the 5 years the Socialists Democrats own both houses of Congress. More money has been spent by this Regime in two years that any other in our nation’s history! The Tea Party had nothing to do with this spending problem.
Here’s what Standard and Poor’s had to say:
Our opinion is that elected officials remain wary of tackling the
structural issues required to effectively address the rising U.S. public debt
burden in a manner consistent with a ‘AAA’ rating and with ‘AAA’ rated
Read the report for yourself. I have it linked above.
Roots of the problem: Spending. Bailouts, and the housing market. Government over-regulations. Congress is spending too much money on programs that are not needed and cost too much. The Stimulus programs didn’t work. Bailout have not worked. Additionally, the stimulus programs was designed not create jobs. The stimulus programs only protected Public Union jobs.
The Big Joke
Corporate Bailouts: Corporations were bailed out of their financial mess, the insurance industry, and the auto industry. Tax payer monies spent to keep these failing businesses afloat was a waste of money. Those industries are still failing and no amount of money has helped restore them. They should have been allowed to fail, reorganize and start over. Instead, the same policies that caused these corporations to fail are being allowed to continue. Nothing has changed. Corporations like General Electric are still not paying taxes, and that’s not being addressed. Instead, Obama wants to tax personal incomes of $250,000 or more.
Fanny Mae and Freddy Mac: the nation’s largest housing lenders are asking for another bailout of $5.1 Billion on top of the $169 Billion that was already given to keep these organizations solvent. They are still lending money to people who cannot afford the house they are in. Again, the same policies that got us into trouble are being allowed to continue. S&P understands that and that’s also in their report.
Government Over-regulation: Obama has put a moratorium on drilling for oil. Permits for drilling haven’t been issued. Government agencies like the EPA are preventing industries from growing with burdensome environmental regulations. The Interior department is preventing oil companies from extracting oil from our own reserves. This has put thousands of people out of work. The ripple effect of this crushing over-regulation is affecting industries across all sectors of the economy. It has caused prices to rise on just about everything. It has caused people to default on their mortgages. These issues are not being addressed and S&P states this.
Keynesian Economics: The theory of spending your way to prosperity, the policy that Obama and his failed economic team have employed, will not work. Not only does it defy the laws of economics, it has never worked anywhere where it has been tried. If you were to max out your credit, have no savings, and asked the bank for a load, you would be directed to the door. This is what has effectively happened with our economy. The bailouts and job killing regulations do not make for sound economic policy. Other bad legislation; the Frank-Dodd Act and the Sarbanes–Oxley Act are just two more examples of bad economic legislation.
Now what do we do?
Apply Censorship: John Kerry, who once served in Vietnam, tried to convince the Lame Stream Media that they shouldn’t talk about the Tea Party. Let’s blame the Tea Party for this colossal failure in government. Let’s avoid blaming those that got us into this mess.
This is a tried and true tactic of Socialists; censor those that don’t agree with your destructive economic policies. Refuse to take ownership of your policy malfeasance inflected on this country.
Green Technology: Another farcical fantasy. Like turning General Motors into a green technology company that cannot sell $40,000 electric cars. Placing windmills on public lands that kill birds. Now that’s thinking green, isn’t it! Environmentalist gave that a pass. The infrastructure doesn’t exist to replace current technologies, so the EPA forces the shutdown of electrical plants. Putting more blight on the land with nonsensical expensive useless technology.
Demonize the Tea Party: Already in a previous post, I stated how Socialist members of Congress and the media were blaming the Tea Party, because we wanted a reduction in spending. The budget bill didn’t make sufficient spending cuts, it actually increased spending. That’s why Standard and Poor’s downgraded our credit rating. Blaming the Tea Party for Obama’s economic malfeasance is not dealing with reality. Even before the 2010 elections which brought in Tea Party members of congress, Standard and Poor’s was issuing warning about our credit worthiness. We were on a Credit Watch long before the 2010 elections. Standard and Poor’s continues to warn that our credit rating is subject to further decline if the true causes of our economic problems are not addressed. Blaming the Tea Party for forcing Congress to face the reality of the debt crisis is simply not dealing with reality.
Refuse to Accept the Truth: The Treasury argues there’s a 2 trillion math error in S&P’s figures. What are 2 trillion differences when you have over 14 trillion in debt? Members of the Tea Party in Congress understood the problem, that’s why they were elected to congress, to try and prevent what just happened with our credit rating, and worse.
Obamacare needs to be repealed: That monstrosity of legislation took $500 Billion out of Medicare and the real burden of tax increases starts in 2014. If people haven’t seen what’s going to happen when the Obamacare provisions start to take place, then this downgrade is going to seem much milder in scope. The damage to the economy will be worse once Obamacare implements in 2014.
Commission a Super Committee: What will they do? More of the same I fear. There have been studies before, there have been budgets that address the spending problems, i.e. see Ryan’s Budget. In both houses of Congress, both Socialist Democrats and Beltway Elitists Republicans have refused to address the spending problems. We don’t have a revenue (alias for tax) problem, we have a spending problem. This is just prolonging the inevitable further downgrading of our credit rating.
Call for Class Warfare: Once the damage begins take hold, expect Obama and the Socialists to call for tax increases on the “Rich“. They want to attack the personal incomes of anyone making $250,000 a year or more. Hollywood boneheads like Matt Damon will say, “I want to pay more in taxes“. Well, then dumbass, pay more taxes, what’s stopping you? Talk is cheap, but when the government starts to raise their taxes, watch to see just how giving they become. A tax increase will only exasperate into another recession or worse a depression.
Solutions: Listen to the Tea Party. Reduce government job crushing regulations. Repeal Obamacare. Enact Medicare and Social Security reforms. Eliminate wasteful unneeded government agencies, i.e. EPA and the Education Department. Enact a Balanced Budget Amendment to the Constitution that will include the flexibility to deal with disasters and wars. Reform the tax code. Remove corporate tax loopholes like the ones that allow General Electric to make Billions in profit, without paying any taxes. Do not allow a second term for Obama. Elect Tea Party candidates.
The solutions are there, but as S&P points out, Congress hasn’t addressed the root causes of the our of control spending. Look into the mirror Congress and stop blaming others for your problems.
Ham and Cheese Omelet with Home Fries and Fresh Fruit
Enjoy it now, because it’s going to get a lot more expensive