The Hill: S&P credit rating analysis values spending cuts more than tax revenue

[Neotrotsky]

Hill: S&P credit rating analysis values spending cuts more than tax revenue

As long as the Left has majority control and refuses to put all entitlements on the table, even PapaObama Care, this will not happen.

The decision by Standard & Poor's to downgrade the U.S. credit rating to "AA+" at once laments the possibility that cuts to entitlement programs will not materialize and the decreasing likelihood of new tax revenues. But it appears to give more weight to the need for more spending cuts, as it warns that a further credit rating downgrade is in the cards if the U.S. does not trim spending.

In contrast, while the report indicates that new tax revenues would help mitigate the debt crisis, failing to find these revenues does not immediately put the U.S. at risk of another downgrade.

Specifically, the report warns directly that a further downgrade to "AA" status could occur within the next two years if there is "less reduction in spending"​

 

[waltky]

Granny says, "Dat's right, it's all dem Tea Partiers fault - while the country was founderin', dey was takin' a tea break...

'Tea Party downgrade' on lips of many Dems
WASHINGTON, Aug. 7 (UPI) -- A former presidential adviser and several Democrats Sunday blamed the U.S. economic downgrade on Tea Party activists in Congress.

"The Tea Party brought us to the brink of a default," David Axelrod, former adviser to President Obama, said on CBS' "Face the Nation." "For months, the president was saying, let's get together, let's compromise," Axelrod said. "We thought we had such an arrangement with the Speaker of the House ... then he went back to his caucus; he had to yield to the most strident voices in his party. They played brinkmanship with the full faith and credit of the United States. This was the result in that.

"The fact of the matter is that this is essentially a Tea Party downgrade," he declared. "That clearly is on the backs of those who were willing to see the country default." Late Friday, Standard & Poor's downgraded the United States' credit rating from AAA to AA+ for the first time in history. S&P said it downgraded the rating because the deficit reduction plan passed by Congress wasn't enough to stabilize the country's debt situation and the political climate wasn't conducive to policymaking or as stable as needed to deal with the current economic challenge.

David Beers, head of S&P's government debt rating unit, said on "Fox News Sunday" the downgrade is the rating house saying "that a mild deterioration [is] in the U.S." credit standing … and "we wouldn't expect that much financial impact in terms of higher interest rates for example." On ABC's "This Week with Christiane Amanpour," S&P Managing Director John Chamber said the ratings agency has been saying for some time that the "fiscal trajectory of the United States was on a bad path and that the political gridlock in Washington leads us to conclude that policymakers don't have the ability to proactively … put the public finances of the U.S. on a sustainable footing. … We think our message has been pretty consistent. And we also think that the numbers speak for themselves."

Larry Summers, Obama's former top economic adviser, said on CNN's "State of the Union" the House Republican majority "played chicken with America's creditworthiness, and America's families are going to be the losers, losers in terms of higher interest rates on their mortgages, losers in terms of what this is going to mean for employment, that we've got critical economic problems." Echoing Axelrod's sentiments, also on "Face the Nation," was Howard Dean, the former Democratic National Committee chairman. "I think they're totally unreasonable and doctrinaire and not founded in reality," Dean said. "I think they've been smoking some of that tea, not just drinking it."

Read more: World News - UPI.com

 

[Neotrotsky]

Once that line of attack fails,
the left will have to pull the race card
out on this one.

Indeed, why once S&P the only one to do this ?
What do they have against a black president?

Sounds funny, but it is out there

 

[Avatar4321]

I think I'm going to have a heart attack and die from this surprise. That's seriously how surprised I am.

I mean who on earth would have thought that fixing our spending problem would matter more to them than raising taxes? I mean other than anyone who understands how to budget and even alittle about debt, of course.

It's amazing how, as predicted, our super great bipartisan compromise did nothing to fix the spending problem, isn't it? I mean despite raising the debt ceiling our credit rating still went down. It couldn't possibly be because those Tea Party members were correct and we actually have to cut spending could it?

After all, The Tea party supposedly won that compromise by getting absolutely nothing. So clearly their desire for real spending cuts couldn't have fixed this problem.

Is anyone who actually wants to fix our nations problems still actually think that spending more money is what we need to do? Or are all the people who want to fix our problems all in agreement now that we need to cut spending?

 

[Neotrotsky]

Big words from a small man like you


Of course, I am partisan to political beliefs not party.
I have never claimed to be or not.

It is more honest than some
who pretend to be balanced
and really are not

 

[Neotrotsky]

I think I'm going to have a heart attack and die from this surprise. That's seriously how surprised I am.

I mean who on earth would have thought that fixing our spending problem would matter more to them than raising taxes? I mean other than anyone who understands how to budget and even alittle about debt, of course.

It's amazing how, as predicted, our super great bipartisan compromise did nothing to fix the spending problem, isn't it? I mean despite raising the debt ceiling our credit rating still went down. It couldn't possibly be because those Tea Party members were correct and we actually have to cut spending could it?

After all, The Tea party supposedly won that compromise by getting absolutely nothing. So clearly their desire for real spending cuts couldn't have fixed this problem.

Is anyone who actually wants to fix our nations problems still actually think that spending more money is what we need to do? Or are all the people who want to fix our problems all in agreement now that we need to cut spending?

With the Left keeping entitlement programs like Papa ObamaCare off the table
don't expect any serious reform from them

More short term- getting spending back down to the historical levels of 20%of GOP
from the increased levels of 25% that the Left has taken it to, should be easy; but
it won't last forever.

Upcoming Entitlement cost is where the real cost lies and the real battle

It is further complicated by the fact that the Left needs these programs
as gov't run institutions only, to keep their power
Which means the only way to keep some of these Ponzi programs
going is to cut benefits and/or raise taxes, dramatically. One can forget any real
reform when it comes to collecting and distributing the funds from these
programs.

Giving more power and control back to people over their
own funds is the last thing any statist wants.
That would mean you would need the politician less,
we can't have that now can we....

 

[mudwhistle]

I think I'm going to have a heart attack and die from this surprise. That's seriously how surprised I am.

I mean who on earth would have thought that fixing our spending problem would matter more to them than raising taxes? I mean other than anyone who understands how to budget and even alittle about debt, of course.

It's amazing how, as predicted, our super great bipartisan compromise did nothing to fix the spending problem, isn't it? I mean despite raising the debt ceiling our credit rating still went down. It couldn't possibly be because those Tea Party members were correct and we actually have to cut spending could it?

After all, The Tea party supposedly won that compromise by getting absolutely nothing. So clearly their desire for real spending cuts couldn't have fixed this problem.

Is anyone who actually wants to fix our nations problems still actually think that spending more money is what we need to do? Or are all the people who want to fix our problems all in agreement now that we need to cut spending?

Raising the debt-ceiling is why they downgraded us and the Tea Party didn't want the ceiling raised.

What's so hard to understand. When you owe more and refuse to deal with it you lose trust.

Btw, who has been whining about raising the debt-ceiling since Nov of last year???

It's funny that the White House and their fuzzy math is claiming the S&P made a math mistake.

So the White House blames everyone but themselves calling the S&P fuckups and calls this "The Tea Party Downgrade".

At least that is the rumor they're desperately trying to circulate....ala Cass Sunstein's favorite governmental tool....Availability Cascades.

Availability Cascades - Repeating a lie over and over till it becomes accepted fact.

 

[Neotrotsky]

Papa Obama has not made an official statement yet.

It appears that the demands of golf are keeping him busy at the moment.

Of course, attack the messenger!
I am sure it will only be a matter of time
before the left makes the claim of racism

After all, S&P was the only group to lower us

 

[mudwhistle]

Papa Obama has not made an official statement yet.

It appears that the demands of golf are keeping him busy at the moment.

Of course, attack the messenger!
I am sure it will only be a matter of time
before the left makes the claim of racism

After all, S&P was the only group to lower us

Obama inherited a AAA credit rating from Bush and he's lost it.

 

[Neotrotsky]

Yes
but it will be Bush's fault

After things like this below
it is a wonder anyone can take the left serious on anything to do
with finance. The gov't has done such a poor job and yet
the Left can not get enough

Obamacare will create 400,000 jobs ALMOST IMMEDIATELY
[ame=http://www.youtube.com/watch?v=pNiLYEiFUMU]‪Obamacare will create 400,000 jobs ALMOST IMMEDIATELY, says Choppy Hands McBotox‬‏ - YouTube[/ame]

 

[Neotrotsky]

S&P Chief Looks at Entitlement Reform to Resolve Debt Downgrade

David Beers, global head of sovereign and international public finance ratings at S&P, told "Fox News Sunday" that governments and Congresses come and go, but spending on entitlements persistently drags U.S. debt further into the red.

"The key thing is, yes, entitlement reform is important because entitlements are the biggest component of spending, and the part of spending where the cost pressures are greatest," Beers said.

Beers said he faults both Congress and the Obama administration for "the difficulty of all sides in finding a consensus around fiscal policy choices," but any agreement must command the support from both political parties in order to be durable.​

Bill Miller of Legg Mason Capital Management, who appeared with Ryan, said the markets are looking to see a "reduction in uncertainty," which means both fundamental tax reform and changes to the entitlement structure.

"Discretionary spending doesn't matter at all in this thing except that it'll be a little bit of a drag on the economy. It's pro-growth policies and fundamental entitlement reform, especially on health care, that are the key things for to our long-term fiscal health and therefore the long-term confidence in the markets toward our country," Miller said.​

 

[editec]

What cuts do our fiscal conservatives propose we see from these areas of interest?


SUMMARY OF THE DOD FISCAL 2012 BUDGET PROPOSAL

VA Announces Budget Request for 2012

Homeland Security budget 2012

 

[Neotrotsky]

Everything is up

even Papa ObamaCare



What ways do our fiscal liberals propose for these

Looking at ways to remove gov't from
entitlement collection and distribution ?

 

[mudwhistle]

Yes
but it will be Bush's fault

After things like this below
it is a wonder anyone can take the left serious on anything to do
with finance. The gov't has done such a poor job and yet
the Left can not get enough

Obamacare will create 400,000 jobs ALMOST IMMEDIATELY
‪Obamacare will create 400,000 jobs ALMOST IMMEDIATELY, says Choppy Hands McBotox‬‏ - YouTube

Well if Bull Shit had value the left would be rolling in dough.

They could pay off the debt today.

 

[NYcarbineer]

Hill: S&P credit rating analysis values spending cuts more than tax revenue

As long as the Left has majority control and refuses to put all entitlements on the table, even PapaObama Care, this will not happen.

The decision by Standard & Poor's to downgrade the U.S. credit rating to "AA+" at once laments the possibility that cuts to entitlement programs will not materialize and the decreasing likelihood of new tax revenues. But it appears to give more weight to the need for more spending cuts, as it warns that a further credit rating downgrade is in the cards if the U.S. does not trim spending.

In contrast, while the report indicates that new tax revenues would help mitigate the debt crisis, failing to find these revenues does not immediately put the U.S. at risk of another downgrade.

Specifically, the report warns directly that a further downgrade to "AA" status could occur within the next two years if there is "less reduction in spending"​

There is only one thing that would justify the Democrats not putting entitlements on the table:

The refusal of the GOP to put taxes and defense spending on the table.

 

[Neotrotsky]

Really

they never put Papa ObamaCare on the table

 

[NYcarbineer]

Really

they never put Papa ObamaCare on the table

I thought the GOP already repealed that like they promised in last year's campaign. I guess they were lying.

 

[NYcarbineer]

Really

they never put Papa ObamaCare on the table

Like I said, the ONLY thing that justifies Democrats not putting entitlements on the table is the GOP not putting taxes and defense on the table.

 

[Neotrotsky]

You must mean in future negotiations

 

[Sallow]

Once that line of attack fails,
the left will have to pull the race card
out on this one.

Indeed, why once S&P the only one to do this ?
What do they have against a black president?

Sounds funny, but it is out there

Hey Neo.

This is the same Standard and Poor's that gave mortgage backed securities a triple A rating?

Yep. Reliable bunch these guys.