S&P downgrades United States’ credit rating

  In addition to avoiding default we were told by the Obama regime there were two other reasons that a deal to raise the debt ceiling must be reached by August 2nd. The first of those reasons was because the stock market remained volatile and concerns over the nation’s debt and possibly default had the markets spooked and this was causing a sell off, we needed a deal to calm the worries of the stock market. But after the debt deal was signed we watched the market lose over 500 points in one day and over the course of the week the stock market gave back all of the gains earned over the course of this year. The debt deal added to the worries on Wall Street and did not help to ameliorate the concerns over the nation’s debt.

  While the debt deal did nothing to smooth tensions in the stock market at least the deal prevented S&P from downgrading the United States’ AAA credit score, right? Not so fast because S&P called for the United States to find $4 trillion in savings in order to save the AAA rating and this deal fell way short of that number.

  The debt deal managed to find cuts of $1 trillion over ten years, with the likelihood that only $10 billion of these cuts are real cuts, and formed the Super Congress to find an additional $1 trillion in savings in the future–kicking that proverbial can down the road once again.

  So our elected officials knew the number which would be needed to preserve the credit rating of the United States and they still could only get halfway there, and now the credit rating has been downgraded. This means interest rates are going to rise on loans and mortgages, and the money the United States will be allowed to borrow under this new debt deal will cost more in interest. This deal has cost the American taxpayers dearly and is the last thing we needed during this recession.

  Naturally Barack Obama–the economic genius that he is–has tried to deflect the blame by telling S&P that it made a $2 trillion error in their prediction and this deal should have been enough to avoid the downgrade because, after all, he understands this type of accounting better than the professionals at NorthShore Advisory, he is the president after all.

  While Barack Obama won’t take responsibility for being the first president to allow the United States’ credit rating to be downgraded there is only one group of people in this deal who never wavered and who made every attempt at finding the necessary cuts to save the AAA rating and because of this that group of people have been labeled as terrorists by the vice president of the United States.

  Nobody else had the courage to stand up and say “enough is enough” and now we have people like the estimable John Kerry making asinine statement such as the media has the responsibility to not give equal coverage to the only group who truly understands the problem and tried to do something about it.

  Name calling and calls for censorship have abounded since the debt ceiling deal was signed–the Tea Party has been maligned and ridiculed as being stubborn and too driven by principle to compromise for the good of the country. But what this downgrade shows us is that the Tea Party knew what was good for the country, and tried to do it even if it meant losing re-election, while the Democrats and the establishment Republicans were only concerned with their re-election chances and spinning this debate in a manner that made them appear as the true victors in this game.

  The S&P downgrade shows us that there were no victors in this game, only losers, and because nobody in the establishment showed the political courage the Tea Party showed the whole of the American people are the ones who really lost in this debate.

  What will it take before the Washington politicians finally take this issue serious–the total collapse of the United States economy? And even then would they act?

  There is only one way left to solve this problem, and that is to send more people to Washington who will make the tough choices and stand on principle to do the right thing for the country. I am talking about Tea Party candidates, of course, and I think that if nothing else this debate has awakened even more people and has provided them with an insight into the Tea Party candidates that they were not able to see before because of the manner in which the media covered the Tea Party.

  There is a groundswell occurring in this country and people like Joe Biden and John Kerry can sense it and they are worried, hence the name calling and calls for censorship. It is time to downgrade the Washington politicians who got us into this mess in the first place–do we really expect the people who got us into this mess to be able to figure out how to get us out of it?