Saturday, August 6, 2011

S & P Sends the U.S. to Alcoholics Anonymous

The U.S. government is drunk on debt and got an intervention Friday from Standard and Poors:

"We have lowered our long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term rating."
Washington is still in denial and the blame game will shift into high gear. I blame Obama, Biden, Reid, McConnell, Boehner, and Pelosi. They punted the debt celing compromise. They wanted 4 more months in April, they wanted 4 more months in August.

I can stop drinking anytime I want, I'm not a drunk, I can handle my drinking, they insisted. Just give me a little more time, and when I'm ready I'll stop, they begged.

Earlier Friday before the downgrade was announced, President Obama implored:

"What I want the American people and our partners around the world to know is this: We are going to get through this. Things will get better, and we're going to get there together."
The need to make this statement, addressed both at Americans and our foreign creditors is telling, but getting there together is not something that is not fully in Barack Obama's power to promise. Here is why Standard and Poors isn't buying the debt ceiling compromise:

  • no robust recovery from the recession

  • no containment of entitlements and other spending growth

  • no agreement on raising tax revenues

  • no stabilization of the debt burden

  • no end to political brinksmanship

  • Don't blame me, I'm from Iowa.

    No comments: