Is the U.S. Credit Rating a Victim of GOP Sabotage?

[DaGoose]

But Congressional Republicans deserve much more of the blame. For this calamity was entirely man-made -- even intentional. The contemporary Republican Party is fixated on taxes. It possesses an iron-clad belief that the existing tax rates should never go up, that loopholes shouldn't be closed unless they're offset by other tax reductions, that the fact that hedge fund managers pay lower tax rates than school teachers makes complete sense, that a reversion to the tax rates of the prosperous 1990's or 1980's would be unacceptable.

In the past two years, this attitude has combined with a general hostility to playing ball with Democrats on large legislative issues, a near-blanket refusal to conduct business with President Obama, and, since the arrival of the raucous Tea Party freshman, a cavalier attitude toward the nation's obligations. It was common to hear duly elected legislators argue that it wouldn't be a big deal if the government were to pierce the debt ceiling and default on its debts.

Top Congressional Republicans have expressed a desire to deny victories to the president.

Is the U.S. Credit Rating a Victim of GOP Sabotage? | Daniel Gross - Yahoo! Finance

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[Lakhota]

YES! That's a no-brainer!

 

[KissMy]

It is both parties fault. Taxes were not raised & enough entitlements were not cut.

[ame="http://www.youtube.com/watch?v=VuCKkOkQcHY&feature=mh_lolz&list=FLbelSlnGRpRM"]Who We Are Supporting With Taxes[/ame]

 

[Toro]

This is a two-party failure, not one party.

 

[KissMy]

CNN: Chinese agency downgrades U.S. credit rating for the 3rd time.

The Dagong Global Credit Rating Company, which lowered the United States to A+ last November after the U.S. Federal Reserve decided to continue loosening its monetary policy, announced a further downgrade to A

German Rating Agency Feri Downgrades US Government Bonds: AAA to AA! | zero hedge

The first Western downgrade of US government bonds is a fact! The German credit rating agency Feri lowered its rating on US debt by a full notch, from AAA to AA.

"The U.S. government has fought the effects of the financial market crisis primarily by an increase in government debt. We do not see that there is sufficient attention being paid to other measures, "said Dr. Tobias Schmidt, CEO of Feri Rating & Research AG. "Our rating system shows a deterioration in economic health, so the downgrading of the credit ratings of U.S. is warranted."

For the third consecutive year the deficit of the United States is in double digit percentages relative to gross domestic product (GDP). "Deficits of such magnitude are not a sustainable fiscal policy. We would reconsider the rating when the U.S. government creates a long-term sustainable budget," said Schmidt. German press release: Feri Downgrades US Gov Debt AAA to AA

Egan-Jones Downgrades US From AAA To AA+ It had nothing to do with the current Debt Limit!!! It was due to the looming 100% Debt to GDP ratio.

Generally we devise modeling calculators and do an analysis that examines the debt load of a country with respect to its GDP and other economic indicators. The analysis is then adjusted to reflect the outlook on a myriad of factors that reflect the firm’s overall view of the sovereign debt and the quality of the country’s ability to meet and thrive under such load. Some of the qualitative factors that impact our ultimate assessment of credit quality such as the flexibility, stability and overall strength of the economy, ease of tax collection, acceptance of contract law, ease of doing business, and prospects for future growth and health. The non quant issues are generally subjective and a moving target, so each rating of a sovereign may differ because of the non-quantitative nuances being addressed.

Moody's lowered its outlook on U.S. debt to "negative." | CNN

Credit rating agency Moody's said Tuesday the United States will keep its sterling AAA credit rating for the time being, but lowered its outlook on U.S. debt to "negative."

A "negative outlook" indicates the possibility that Moody's would downgrade the country's sovereign credit rating within a year or two.

S&P Downgraded US Credit to AA+ | AP

S&P said that in addition to the downgrade, it is issuing a negative outlook, meaning that there was a chance it will lower the rating further within the next two years. It said such a downgrade, to AA, would occur if the agency sees smaller reductions in spending than Congress and the administration have agreed to make, higher interest rates or new fiscal pressures during this period.

"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"

Fitch Statement Shows US Downgrade Risk Remains In Play

Fitch said that it “projects that US government debt, including debt incurred by state and local governments as well as the federal government, will reach 100% of GDP by the end of 2012, and will continue to rise over the medium term - a profile that is not consistent with the United States retaining its 'AAA' sovereign rating.”

Gold upgrade to a Tier 1 Asset while US Bonds get downgraded.

 

[editec]

Us Credit rating dowgraded.

Its the victim of nearly 50 years of mismanagment by the duelopoly.

It's mismanagment only if one assumes that the duelopoly's real agenda was a healthy and vibrant nation.

I'm not entirely convinced that was (or is!) their agenda.

 

[kyzr]

GOP sabotage? Look at the Debt chart, then recall who extended the Bush Tax cuts. Agreed that the Bush admin was terrible, but the BO admin isn't any better. the dems are taking us deeper into the ditch.

 

[Full-Auto]

But Congressional Republicans deserve much more of the blame. For this calamity was entirely man-made -- even intentional. The contemporary Republican Party is fixated on taxes. It possesses an iron-clad belief that the existing tax rates should never go up, that loopholes shouldn't be closed unless they're offset by other tax reductions, that the fact that hedge fund managers pay lower tax rates than school teachers makes complete sense, that a reversion to the tax rates of the prosperous 1990's or 1980's would be unacceptable.

In the past two years, this attitude has combined with a general hostility to playing ball with Democrats on large legislative issues, a near-blanket refusal to conduct business with President Obama, and, since the arrival of the raucous Tea Party freshman, a cavalier attitude toward the nation's obligations. It was common to hear duly elected legislators argue that it wouldn't be a big deal if the government were to pierce the debt ceiling and default on its debts.

Top Congressional Republicans have expressed a desire to deny victories to the president.

Is the U.S. Credit Rating a Victim of GOP Sabotage? | Daniel Gross - Yahoo! Finance

.

Finger pointing follows debt downgrade - politics - msnbc.com

A left leaning site is ok isnt it.

 

[rightwinger]

The two party system is not working. It is all or nothing for both parties

S&P just slapped us in the face and told us to start acting like adults

 

[CrusaderFrank]

What fucking crap, this is all on Obama and the Dems. "We Own the economy" -- DNC

The House presented a responsible, grown up plan for real spending cuts, and balancing the budget and the Obama and the Dems voted it down. All they cared about was giving Obama unlimited refills on his spending crack pipe until after his one term ends.

Obama, the Downgraded President

And Social Security is still broke

 

[Truthmatters]

The two party system s not working. It is all or nothing for both parties

S&P just slapped us in the face and told us to start acting like adults

The two party system works fine when we dont allow the big money to buy out our reps.

BTW with the tea party thrown in there we are a three party system now.

The triaglization effect is being seen.

 

[BoycottTheday]

if the libs dont want to take the credit they deserve, get out of office,

why are you bothering trying to rule when its apparent you cant?

Ya blame the TeaParty some more, you political party hacks really are something special.

 

[Full-Auto]

if the libs dont want to take the credit they deserve, get out of office,

why are you bothering trying to rule when its apparent you cant?

Ya blame the TeaParty some more, you political party hacks really are something special.

Obama accepted responsibility for the economy in early 09.

In fact he said "GIVE IT TO ME"

 

[percysunshine]

So the leftists have finally spent more money than they can borrow.

Like this is a big suprise.

 

[BoycottTheday]

Should ban some of the liberals here for really being democratic party spamers,

or make them pay to post their party line spam.

 

[percysunshine]

Everyone is entitled to display idiocy for free.

Serving as an example for others and all...

 

[logical4u]

But Congressional Republicans deserve much more of the blame. For this calamity was entirely man-made -- even intentional. The contemporary Republican Party is fixated on taxes. It possesses an iron-clad belief that the existing tax rates should never go up, that loopholes shouldn't be closed unless they're offset by other tax reductions, that the fact that hedge fund managers pay lower tax rates than school teachers makes complete sense, that a reversion to the tax rates of the prosperous 1990's or 1980's would be unacceptable.

In the past two years, this attitude has combined with a general hostility to playing ball with Democrats on large legislative issues, a near-blanket refusal to conduct business with President Obama, and, since the arrival of the raucous Tea Party freshman, a cavalier attitude toward the nation's obligations. It was common to hear duly elected legislators argue that it wouldn't be a big deal if the government were to pierce the debt ceiling and default on its debts.

Top Congressional Republicans have expressed a desire to deny victories to the president.

Is the U.S. Credit Rating a Victim of GOP Sabotage? | Daniel Gross - Yahoo! Finance

.

Yawn. The democrats have been in charge of spending since '06. In '09 they had control of the legislative and executive branch.
The democrats could have raised taxes then, they didn't.
The democrats could have done a "legitimate" health care reform bill instead of dedicating trillions to "free" health care.
The democrats still hold the senate and the executive branch, all they have to do is put some bills forward to raise taxes, let the republicans vote against them and explain why.
The democrats still hold the senate and executive branch, let them eliminate some of these bureaucratic regulations that do nothing for productivity, but sure do keep the bean counters and lawyers in business.
The democrats can put forward a bill to cut spending at any time.
The 'assistance programs' for citizens are now over half the federal income. Please explain to me how you would deal with giving half of your income to people that will not produce anything but more "suckers".

 

[rightwinger]

I'm tired of both sides pandering to the fringe of their party. Time to start letting the moderates of both sides work out what is best for the country.

We can't continue this brinkmanship to see who blinks first.

 

[percysunshine]

Usually, when someone pulls the fringe card, they are part of the fringe.

 

[rightwinger]

Usually, when someone pulls the fringe card, they are part of the fringe.

That makes no sense