So, what does all this mean? Honestly, I won’t pretend to understand the full ramifications of this downgrading, but I can tell, from what I have been reading in the Washington Post and New York Times, it isn’t anything good.
What I can ascertain, is that being unable to fully come to the table to compromise is the financial death knell for this country. What if, for example, the Democrats were to say, we will only allow deep tax cuts to cut 4 trillion dollars? Can you imagine, the Republicans would have an epileptic fit! As they rightly should. Inversely, how could the Republicans believe that Democrats would only be willing to sign a deal based on spending cuts alone?
Obama put a deal on the table for 4 trillion dollars, Boehner was willing to talk, but what happens, the Tea Party cuts his feet out from below him. They actually admit, proudly I might add, they are unwilling to compromise.
This quote from the Washington Post says it best. There was actually the beginnings of something really grand, something this country had never seen before, Democrats willing to put their sacred entitlement cows on the table, but where were the Republicans and their sacred cows………AWOL!
S&P’s downgrade was as much a political critique as a financial conclusion. It is based on a view that American political leaders would be unable to come up with at least $4 trillion in savings, which is needed to bring the nation’s debt to a manageable level over the next decade.
How this will effect our overall economy is yet to be seen, there are many different views, the future is uncertain.
S&P stated it bluntly when they made their decision to downgrade, it wasn’t just based on not dealing with the debt, it was based on their belief that Congress would be unable to come together to solve this pressing issue. This wasn’t a time for ideological grandstanding, it was a time for people to come together, in good faith, and compromise. Thanks for nothing Tea Party. I just cannot fathom there were those in the fringe wing of the Republican Party who actually wanted to allow the United States to default? Shocking and Frightening. This truly was a completely self inflicted wound at time when this country could least afford it.
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 challenge,” the company said in a statement.
http://www.youtube.com/watch?v=Whi0b1ZEoa0#t=02m20s
@Elena
HEY! I’ve said this too? What? No pats on the back for me?
Edit, THEN hit submit. (facepalm)
@Elena
HEY! I’ve said this too! What? No pats on the back for me?
@Cato the Elder
That’s the one! That is still funny to me.
Here’s the booger. Of course we have common ground! Tax Reform, Ending the wars, etc. Even if it’s for different reasons, we do have common ground. But the politicians’ job is to keep us at odds with each other, and as frustrating as it may be, they’re darn good at it. Think they’d ever actually do real tax reform? Think we’ll ever actually stop wasting money on keeping our military flung all over God’s green earth? Heck No! So here we are, bickering about the garbage they want us bickering over.