S&P have downgraded the US debt rating from AAA to AA+ and may downgrade it further to AA within the next two years.
In its statement, S&P said that it had changed its view "of the difficulties of bridging the gulf between the political parties" over a credible deficit reduction plan.
S&P said it was now "pessimistic about the capacity of Congress and the administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics anytime soon."
How long will it take for the other two rating firms to downgrade the US debt rating as well?
At any rate, Obama is the President to have been at the helm when the US debt rating dropped from AAA for the first time ever. Look for the markets to drop even more next week. Hopefully this doesn't start a depression.
Considering that most of Obamacare won't even go into effect for two more years, this downgrading wasn't even affected by debt being accrued by Obamacare. If Obamacare isn't repealed by the next Congress and President, then we can count on further downgrading of the US debt rating.
5 comments:
Not good news, for him or us.
We are in for rough weather, I'm afraid.
-Martha
The GOP doesn't have to lose the House of Representatives, but keeping the House will require that everyone in the conservative coalition act wisely.
If we spend our resources trying to punish Republican House members who didn't live up to our ideas of ideological purity, then we give the Democrats a better chance to regain the House. Maybe defeating your local GOP Congressman makes you feel good because he voted for the deal and you don't like the deal. However, when you spend your resources and force him to spend his resources to win re-election, you give the Democrat a better chance to win the seat. Giving the seat to the Democrat is particularly likely if your ideologically pure candidate runs an ugly, divisive primary campaign. Some real debate about policy and direction is good for the party, but if your whole campaign is to scream "He's a RINO!" you're only helping the Democrats.
In seats where there is no Republican incumbent, we need to find candidates who have a realistic chance of winning the seat. For instance, I wouldn't have asked Delaware conservatives to support Mike Castle in the US Senate primary there in 2010. However, if Tea Partiers and conservatives had offered someone more credible than Christine O'Donnell, we would have had a realistic chance to win that seat without having to elect someone like Mike Castle who would defect to the Democrats on every important vote.
The country is in for rough times ahead. We've had six years of Democrat control of the US Senate, and the Democrats controlled the House from 2006 to 2010. During the time when our economy turned for the worse, Democrats controlled Congress. Even before that time, President Bush compromised conservative principles too much on domestic issues. If we make that point early and often without resorting to ignorant cries of "RINO!" we can show people that we need strong conservative direction to put the country back on solid ground. The problem is not the direction advocated by the hard right. The problem is that the hard right doesn't always advocate ideas intelligently.
nah, we wont lose the house. Its just mathematically impossible. In fact we are still going to pick up the senate.
I hope people are smart enough to realize that we need some serious people to deal with this debt problem so it doesn't get any worse. Being downgraded is NOT good!
AZ
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