Nikki on: S&P’s Ruling on America’s Credit Rating

August 6, 2011 sexyknees

Politics are not my thing and wish I could keep it that way!

I just heard that S&P’s decided to lower America’s credit rating from AAA to AA+ for the first time in our country’s history.  According to the NY Times, Standard and Poor’s described the decision as a “judgment about the nation’s leaders,” and that “the gulf between the political parties had reduced its confidence in the government’s ability to manage its finances.”  On CNN, S&P’s representative stated that the length of time it took Congress to resolve the debt ceiling issue was a significant factor of its ruling.

S&P further stated that, “The downgrade reflects our view that the effectiveness, stability, and predictability of American policy making and political institutions have weakened at a time of ongoing fiscal and economic challenge.”

If you recall, Standard and Poor’s had prepared investors by warning them that if Congress did not agree to increase the government’s borrowing limit and adopt a long-term plan for reducing its debts in a timely fashion it would act.  Obviously, this was known by members of Congress and their inability to conclude the debt dilemma in a timely fashion could, in my opinion, be viewed as an intentional act to damage our country.

Democrat or Republican, and regardless of their patriotism, I say it is time to clean house and start with an entirely new Congress.  We need experienced representatives whom have the best interest of the country in mind rather than their party.

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2 Comments Add your own

  • 1. dana7ng  |  August 7, 2011 at 4:51 pm

    I’m going to provide how I understand what’s going on in actual proportions of the federal budget & debt.
    If the US Government was a family, then we would be making $58,000 a year while we spend $75,000 a year and we owe $327,000 in credit card debt. The currently proposed BIG spending cuts would reduce our spending to $72,000 a year.
    The econonmy is weak so if you raise taxes, then jobs will be lost and things will be higher priced. As an example if you get rid of the oil company loop holes, then they’ll raise the price of gas to maintain their profit margin and we pay more. This happened in the early 80’s. A business owner would have less money to invest in his company so less jobs are created and jobs were cut. This happened in the early 90’s. So you don’t stimulate the economy by taking money out of the economy with taxes.

    • 2. sexyknees  |  August 8, 2011 at 10:26 pm

      Thank you so much for clearly exemplifying our plight. I believe the technical term for our current debt problem is “pickle.” I’m curious to know if you have a probable solution you’d like to share? Honestly, I don’t know enough about economics to begin to suggest a resolution, but would be most happy to hear everyone’s ideas!

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