Tea Party Duplicity on the Debt Deal

Discussion in 'Politics' started by geauxtohell, Aug 16, 2011.

  1. geauxtohell
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    geauxtohell Choose your weapon.

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    The greatest irony of the aftermath of the debt downgrade is that the Tea Party, and most notably Michele Bachmann, have claimed political victory on the matter. To listen to Congress Woman Bachmann, the downgrade was the result of "not cutting enough" and steadfastly refused to vote to raise debt ceiling. That's about 20% right. Upon reading the S&P report, it's clear that allowing August 2nd to pass without raising the debt would have led to a larger downgrade and unlike spending cuts (which can be further addressed at a later date), the debt ceiling had a hard deadline and once that boat sailed, it would have been too late to fix the mess.

    The S&P indicated in their report that the largest reason for the downgrade was the fact that there was even a debate about raising the debt ceiling before the deadline and that their fears that it wouldn't be raised in the future due to political brinksmanship.

    As much as they would like to claim otherwise, the Teaparty certainly doesn't have any high ground on the issue. No so ironically, if the teaparty had gotten their way and not raised the debt ceiling, the downgrades would have been much worse.

    Pushing Rope: Standard and Poors Places United States on Credit Watch

    Not raising the debt ceiling would have been a frigging disaster. We don't have to debate it, S&P lays it out in plain English. It's futile to debate whether we would have really defaulted if the debt ceiling wouldn't have been raised. S&P and other credit agencies are in the business of predicting adverse events before they happen. They don't take a "wait and see" attitude on the matter. Not raising the debt ceiling is a sign of bad faith (like not paying off your credit card minimum).

    The compromise was far from perfect, but it got us off credit watch.

    More from the article:

    http://www.ft.com/intl/cms/af2c4fac-bfc2-11e0-90d5-00144feabdc0.pdf

    In other words, the absurd "self inflicted wound" that was the debt ceiling "crisis" is exactly what led to this. The problem is that the Tea Party doesn't compromise, and Washington is built on compromise. Even when their own party brokered a deal that gave them "98% of what they wanted"* many of them (with some notable exceptions - thank you Allen West) still voted against it, to include Michele Bachmann, who wants to run the entire country.

    The compromise wasn't perfect, but it likely staved off a financial meltdown. The TP ironically gets to sit back and throw stones because they didn't get their own way. If they had, we would be in an economic disaster right now.

    As it stands, S&P is the only credit firm that handed us a minor downgrade and that was controversial unto itself with many analysts calling "foul". Moody's reaffirmed the AAA rating, and Fitch* just reaffirmed it as well after giving it a second look.

    U.S. Sovereign Debt Rating Is Affirmed by Fitch at AAA; Outlook Is Stable - Bloomberg

    We can only speculate what would have happened if the TP caucus was more sufficient and able to stymie the process. The American people aren't ignorant of this either. There is a reason the TP has falling in the polls since August 2nd. So the compromise wasn't perfect, but it was a last minute deal that averted a larger crisis.

    The Tea Party hasn't proven that it possesses the adult leadership necessary to work across the aisle to take the measures necessary to right our financial ship. Tell me again why these people need to be given the keys to the kingdom?

    *
    Read more: Obama Announces Debt-Reduction Deal Approved by Senate, House Leaders - FoxNews.com
     
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  2. Full-Auto
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    How does the democrat conference call of any cut being Extreme before negotiations started play into this?
     
  3. saveliberty
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    saveliberty Diamond Member

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    The debt crisis was precipitated by the failure of Democrats to accept basically the same bill six months earlier. That is fact. Also, when progress was starting to be made the week before the deadline, Obama suddenly wants MORE tax increases. Again, a Democratic failure of epic proportion.
     
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    PAYGO!!!...What the hell ever happened to SanFranNan's precious PAYGO?!?!?! :eusa_whistle:
     
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    Nancy Pelosi announced after taking the house in 2007 that the end of deficit spending was here.
     
  6. Oldstyle
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    What I find most amusing is how people like you can take what S&P said in their report and spin it to where you think we were downgraded SOLELY because the debt limit debate went down to the very last minute and conservatives wanted more cuts in return for raising the ceiling.

    We got downgraded because S&P thinks we have too much debt and that we don't have the political stomach to make tough cuts to entitlements to resolve the situation.
     
  7. bitterlyclingin
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    bitterlyclingin Silver Member

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  8. geauxtohell
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    geauxtohell Choose your weapon.

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    As deflection.

    No doubt both parties share some blame. This thread is about the disaster that would have happened if the TP got their way and didn't raise the debt ceiling (something the establishment GOP knew needed to happen). In the end of the day, a compromise was reached.

    Had that not happened, it would have been a disaster. Ironically, the TP wants to play "I told you so", when (if you bother to read the report) that simply is not the case.
     
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    aH THE WHAT IF ARGUMENT, THAT MUST ASSUME NO OTHER MEASURES WOULD HAVE BEEN TAKEN. Greenspan said quite clearly we could just print money.
     
  10. geauxtohell
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    geauxtohell Choose your weapon.

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    If you actually read my post, that's not what I said:

    " the downgrade was the result of "not cutting enough" and steadfastly refused to vote to raise debt ceiling. That's about 20% right."

    S&P also lamented that the deal had no mechanism to raise additional revenue, but I don't hear the right wing acknowledging that.

    All that aside, not raising the debt ceiling would have been a disaster and the S&P fears that "brinksmanship" on the effort will allow a future event where we won't get it done. as it stands, this was a last minute deal.
     

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