Posts Tagged ‘AA+’

Barack Obama, America’s First Downgraded President

August 6, 2011

Barack Obama is our first black president (he’s only half black, actually, but it’s still a first).  And that makes him “historic.”

But it turns out being the “first” at something or being “historic” is NOT necessarily a good thing.

For example, Barack Obama is now our first downgraded president, too:

WASHINGTON (AP) — The United States has lost its sterling credit rating from Standard & Poor’s.

The credit rating agency on Friday lowered the nation’s AAA rating for the first time since granting it in 1917. The move came less than a week after a gridlocked Congress finally agreed to spending cuts that would reduce the debt by more than $2 trillion — a tumultuous process that contributed to convulsions in financial markets. The promised cuts were not enough to satisfy S&P.

The drop in the rating by one notch to AA-plus was telegraphed as a possibility back in April. The three main credit agencies, which also include Moody’s Investor Service and Fitch, had warned during the budget fight that if Congress did not cut spending far enough, the country faced a downgrade. Moody’s said it was keeping its AAA rating on the nation’s debt, but that it might still lower it.

And let’s see. WHICH Party was trying to cut spending (hint: their symbol is an elephant) and WHICH Party fought them at every turn (hint: their symbol is a jackass)???

Because this downgrade – and S & P is already warning of another downgrade – is ALL about Democrats’ inability to cut their addiction to SPENDING:

One day after lowering the nation’s platinum triple-A credit rating, Standard & Poor’s analysts warned Saturday that the U.S. government could face a second downgrade if the economy continues to struggle and the government fails to make the cuts outlined in the debt ceiling agreement.

This is a legitimate and serious concern because Democrats have REPEATEDLY promised to cut spending and then reneged on their promises.

The history is crystal clear: Republicans have tried to cut spending since the people gave them power in the House of Representatives in January; Democrats have resisted all efforts in spite of their false promises.

At this time allow me to add that Obama actually already WAS the first downgraded president – since November 2010 (i.e., before the Republicans controlled anything), according to our #1 lender, China:

Beijing (CNN) — Although the United States narrowly avoided an unprecedented default following congressional approval of a last-minute compromise plan to raise the debt ceiling, China’s leading credit rating agency Wednesday [August 2] downgraded U.S. sovereign debt after putting it on negative watch last month.

The Dagong Global Credit Rating Company, which lowered the United States to A+ last November after the U.S. Federal Reserve decided to continue loosening its monetary policy, announced a further downgrade to A, indicating heightened doubts over Washington’s long-term ability to repay its debts.

It said the gloomy assessment — much lower than the AAA ratings given by the so-called “big three” Western agencies Moody’s, Fitch, and Standard and Poor’s — was inevitable given the level of market concern generated by the stalemate between Democrats and Republicans over the debt ceiling

We got our first downgrade when Republicans had no power over anything.  And it was Republicans who tried to prevent this disgrace.  And if it hadn’t been for Democrats – who were the world’s most vile party when they fought the Civil War to keep slavery and are STILL the most vile party today – this disgrace would not have happened.  So to blame the credit downgrade on Republicans is the act of wicked and pathologically dishonest Democrats.

Understand, our AAA credit rating had stood through the enemies we’d faced during World War I, the Great Depression, World War II, the entire Cold War, Korea, Vietnam, the 9/11 attack, Afghanistan and Iraq.  But sadly it could not withstand a determined assault from our worst enemy defeating us from within: Barack Hussein Obama.

In the same way, the United States Postal Service has been around since July 26, 1775.  And while “Neither rain, nor snow, nor sleet, nor hail shall keep the postmen from their appointed rounds,” it now appears that the sheer unmitigated incompetence and spending addiction of Barack Hussein Obama sure can.  It’s on the verge of going belly-up along with the rest of the country.

I guess I’d call that fiasco “historic.”

Democrats who refused to do ANYTHING about seriously cutting debt (realize they rejected a plan that would have entailed just making a 1% cut a year in the budget for 6 years) are blaming Republicans for whom cutting debt was their sole focus.  It’s beyond amazing.  And stupid and depraved people will believe it, because stupid and depraved people have ALWAYS believed lies and supported the most wicked ideology.

That should further contribute to the sheer demagogic and hateful lunacy of Democrats, who actually had the vicious and vile chutzpah to blame the Tea Party for the huge stock drop on Thursday, August 4:

“Today, the stock market tumbled 512 points, wiping away billions of dollars from the retirement and education savings of middle class Americans. Every American should be concerned about the very real possibility of sliding into a ‘Tea Party recession.’

“Tea Party Republicans took the entire U.S. economy hostage over the debt ceiling increase and used this crisis to force trillions in cuts at a time when more, not less investment in the U.S. economy is needed. The destructive default politics and machete budget cutting of the Tea Party Republicans in Congress is exactly the wrong medicine for the ailing U.S. economy.

“The Republican obsession with slashing government investment is totally counterproductive. The Tea Party’s default crisis created enormous, unnecessary uncertainty in global markets. Congress should have raised the debt ceiling months ago and spent the summer working together in Congress on a growth agenda for the country.

Obama and the Democrats are like addicts, blaming everybody but themselves for their failures and the chaos and disaster those failures have caused.  The obvious fact of the matter is that the stock market took a huge hit for two reasons which both have “Democrat Party” written all over them: 1) the utter failure of European socialism at a time when Obama and the Democrats are still determined to follow this completely failed model here:

Markets worldwide were on edge over fiscal weakness in Italy and Spain and the eurozone’s ability to contain more crisis, as the two countries’ borrowing costs surged in recent days.”

and 2) the “let’s just create more money out of thin air” model otherwise known by the technical name of quantitative easing (i.e., QE1, QE2, and apparently soon-to-be QE3).  Here’s how THAT very NON-Tea Party bankrupt and bankrupting policy will end:

We have officially crossed into the realm of abject fiscal and moral lunacy under Obama.  We are now borrowing more than our entire economy is worth.   Obama is borrowing 43 cents out of every dollar he is spending; he is deficit-spending $4.1 billion every single DAY; he has increased the size of government by 27% over George Bush (according to the CBO) and he is utterly determined to keep spending more and more and more.

In May of this year, Obama submitted a budget that would have added $12 trillion to our debt.  It was so insane in so many ways that not even one single DEMOCRAT would vote for it in the Democrat-controlled Senate.  Obama’s reckless and immoral budget failed by a vote of 97-0.

That’s not some right-wing talking point.  That’s the TRUTH.  Obama is an embarrassment.  He is a disgrace.

Let’s take a moment to contemplate what Obama has done:

  • Tripled budget deficits since he took office
  • Gave us a failed $862 Billion stimulus package that the CBO said actually cost taxpayers $3.27 TRILLION.
  • Spent tens of billions in GM/Chrysler bailouts that were basically fascist (the corporatist state).  See here and here.
  • Increased the size of government by 25%
  • Gave us chronic unemployment at Great Depression levels of 18%
  • Gave us a Debt/GDP ratio WORSE than the Great Depression
  • That in addition to two EXTRA wars in addition to the two he promised to get us out of and lied. The Libya war that he said would take “days, not weeks” has now dragged on for more than five months with no sign of ending
  • And now he’s given us a credit downgrade for the first time in American history

Obama will say ANYTHING.  He is an abject liar and a fool who says one thing and then does another before saying something else entirely.  Unfortunately, the pathologically biased mainstream media reports Obama’s constantly shifting rhetoric as if it had anything whatsoever to do with actual reality.

As an example, Obama repeatedly called for huge tax hikes in this debt ceiling deal on top of the $500 billion in tax hikes he got as part of ObamaCare.  But listen to his own words in 2009: “You don’t raise taxes in a recession.”

The fact of history is crystal clear: Tax Cuts INCREASE Revenues; They Have ALWAYS Increased Revenues.  Versus tax hikes, which reduce revenues and reduce GDP.  As the National Bureau of Economic Research put it, “Tax changes have very large effects: an exogenous tax increase of 1 percent of GDP lowers real GDP by roughly 2 to 3 percent.”

And yet what do Obama and the Democrats keep doing?  Obama is back to the same utterly failed Marxist class warfare tactics that have failed before. In the 1990s, Democrats imposed a “luxury tax” on items such as yachts, believing that the wealthy “could afford it.” Maybe they could and maybe they couldn’t, but the FACT was that the rich STOPPED buying yachts. As in stopped completely. As in NOBODY bought a yachtwith that damn tax on it. The Democrats finally rescinded that stupid tax two years later after destroying the yacht building and yacht maintenance industries and killing over 100,000 jobs. Rich people weren’t hurt at all; ordinary people were devastated.

And now Obama wants to do the same thing with corporate jets that previous Democrats did to yachts. And they only people who will get hurt if Obama gets his way are the companies that hire people to build and maintain those jets and the workers themselves who will lose their jobs and their livelihoods. And the only thing that is stopping this rape of businesses, workers and the economy that depends on workers and businesses are Republicans.  Even if many of the very people who are most hurt by Democrats Marxist class warfare policies are too stupid to know it.

Barack Obama is the first downgraded president in American history.  And the American people will pay for that pathetic reality for years to come in higher interest rates.

I had a vision of the hell that Barack Obama would inflict upon America.  That was what got me off my you-know-what into the world of political blogging; I wanted to warn people of what was coming, and I wanted to leave behind a record of what happened while this evil fool was ruining the late great USA.  And now we are just that much closer to everything I saw coming to pass.