S&P: Another Downgrade Coming

Discussion in 'Politics' started by Wiseacre, Aug 6, 2011.

  1. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    They said today that if we don't find a way to substantially fix our national debt/deficits that another downgrade could happen in 6-18 months. I believe they said they expected to see at least a 4 trillion spending cut and were unsatisfied with the deal that was done.

    Maybe this is what we need to spur both sides to work together. The GOP needs to give some ground on revenues and the Dems need to give some ground on entitlements. Don't know that eiher side is willing to budge though. The next election could be a very important referendum on what we're going to do.
     
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  2. Animus
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    Animus Member

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    Wouldn't surprise me if S&P downgrades again. And you're 100% on what needs to be done. Unfortunately neither side will budge on this. I do think we need some form of a sales/consumption tax or tariff to create revenue until better jobs are created.
     
  3. Neotrotsky
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    Neotrotsky Council to Supreme Soviet

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    Will the Left put ObamaCare on the table?

    Taxes are tough when you consider

    IRS: Not enough rich to cover the deficit

    Soak the rich, eh?

    They do not have the money.
    A report from the Internal Revenue Service found that the rich — 8,274 people with incomes of $10 million per year or more — earned a total of $240 billion in 2009.

    Even of you confiscated every dime they earned, you would barely have enough money to cover government spending for 24 days.

    Of course, about a quarter of that money already goes to the federal government for federal income. So make that 18 days.

    Another 227,000 people earned $1 million or more in 2009.

    Millionaires averaged taxes of 24.4% of their income — up from 23.1% in 2008.

    They, too, did not earn enough money to come anywhere close to covering the annual deficits that are $1.5 trillion a year.

    Individual tax collections totaled $1,175,422,000,000 in 2009 — or 15.4% of all income.

    Doubling federal income taxes for everyone would still leave us $400 billion or so shy of balancing the budget.


    Spending is at 25% GDP when historically it sits around 19-20%
    No doubt we have more of a spending problem than tax problem
     
    Last edited: Aug 6, 2011
  4. waltky
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    waltky Wise ol' monkey Supporting Member

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    Granny says now all dat outsourcin' comin' back to haunt us...
    :eek:
    Obama Presses Congress For Action On Jobs After Credit Downgrade
    August 06, 2011 - Amid an avalanche of negative economic news in recent days, President Barack Obama is calling on lawmakers to pass legislation he says will put Americans back to work. The president spoke as another of his financial advisers stepped down, and as a major credit agency lowered the rating of U.S. debt for the first time.
     
  5. 8537
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    8537 Senior Member

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    Thanks for a great post. Spot on.

    We can only hope that the 6 Dems and 6 R's on the new committee are not partisan ideologues but people in search of a solution - the Gang of Six would be a good start. But I fear we'll get ideologues on both sides to the extent that they deadlock 6-6.
     
  6. uscitizen
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    uscitizen Senior Member

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    Ahh this is just proof of who really runs America.

    Good to see they are finally coming out of the closet.
     
  7. Poli_Sigh
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    Poli_Sigh Active Member

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    Well all I can say - I sure wish they were a faster sprinter.
     
  8. waltky
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    waltky Wise ol' monkey Supporting Member

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    Granny gonna move her money from T-bills to Halliburton an' Blackwater stocks...
    :cool:
    S&P rating: Ripple effects of downgrade
    August 6, 2011: The United States has lost its AAA rating from credit rating agency Standard and Poor's. So what happens now?
     
  9. Ravi
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    Ravi Diamond Member

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    Sigh. This is so true. How is it that they know more than Congress? They are just as apt to predict incorrectly as anyone else.

    It almost feels as if they are using their power as a tool to control the country.

    Why not let the markets decide?
     
  10. Ravi
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    Ravi Diamond Member

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    Also, didn't the Democrats just agree to trillions in cuts in order to get the debt ceiling raised? How then does S&P criticize them for not agreeing to cut?
     

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