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Originally Posted by Villages Kahuna
You'd better believe that S&P weighed the words they used in their downgrade press release very, very carefully. For me, a whole lot is said in just a couple of the bullet points in the middle of the release...
The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics.
More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges...
These words can be summarized very easily. The plan that was negotiated by the various political factions in the Congress isn't anywhere near enough to slow the unsustainable escalation of U.S. public debt....and.... We don't believe that the American government has the ability or inclination to make the obvioiusly needed changes.
Watch how much this costs us. Watch how just the loss of that single letter 'A' will add further to out national debt.
I wish I could say that this announcement would change the positions of the political ideologues on both the left and right, but I don't think it will. They are neither smart enough to understand nor at all interested in serving the people who elected them.
It's a sad state of affairs that even now, the partisans will argue is the fault of their political opponents. |
Very well stated.
This could have been avoided...it was totally unnecessary. Both parties are at fault...but, let's not forget who made an issue out of an non-issue.
Where is the courage to deal with real problems without an ideological framework?
Taxes need to be simplified and raised so that everyone pays a fair share (and that also should result in lower taxes for small businesses). The growth of entitlements need to be slowed. Wars need to end. Stupid regulations based on special interest politics need to be curtailed. And weapon systems designed to fight armies that no longer exist need to be abandoned.
Want to keep us secure for the next 100 years??? - start investing in sending kids to school to learn how to hack and stop hackers. That is where the next world war will be fought.