BREAKING: S&P downgrades US credit rating from AAA to AA+, for first time in history

[Little-Acorn]

So much for the great job on the Debt Deal. Remind me of what it accomplished, besides higher debt, more spending, and yet another Congressional committee?

---------------------------------

http://hosted.ap.org/dynamic/stories/U/US_US_DEBT_RATING?SITE=FLTAM&SECTION=HOME&TEMPLATE=
S&P downgrades US credit rating from AAA

By MARTIN CRUTSINGER
AP Economics Writer
Aug 5, 8:42 PM EDT

WASHINGTON (AP) -- Credit rating agency Standard & Poor's says it has downgraded the United States' credit rating for the first time in the history of the ratings.

The credit rating agency says that it is cutting the country's top AAA rating by one notch to AA-plus. The credit agency said late Friday that it is making the move because the deficit reduction plan passed by Congress on Tuesday did not go far enough to stabilize the country's debt situation.

A source familiar with the discussions said that the Obama administration believes S&P's analysis contained "deep and fundamental flaws."

[andrew2382]

end of the world!!!!!!!!!!!!!

the only deep and fundamental flaw Mr. President is you

[Kathianne]

A bit more:

http://legalinsurrection.com/2011/08/sp-drops-u-s-credit-rating-to-aa/


S&P has dropped the U.S. credit rating (http://www.smh.com.au/business/us-has-its-credit-rating-cut-20110806-1ig8p.html) from AAA to AA+:

The United States’ credit rating was cut for the first time when Standard and Poor’s lowered it from triple-A to AA+, citing the country’s looming deficit burden and weak policy-making process.

Standard and Poor’s on Friday revised the nation’s rating downwards to a AA+ with a negative outlook, despite a push back from the White House, which said the rating agency’s analysis of the US economy was deeply flawed.

It was the first time the US was downgraded since it first received a triple-A rating from Moody’s in 1917; it has held the S&P rating since 1941.
S&P further warned (http://blogs.wsj.com/marketbeat/2011/08/05/sp-downgrades-u-s-debt-rating-press-release/):


The outlook on the long-term rating is negative. We could lower the long-term rating to ‘AA’ within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.



If Congress pays attention, unlikely unless Moody's goes along with S & P, perhaps they will come up with a budget and a real plan, perhaps not needing to raise the ceiling again as early as projected. In any case, it certainly puts pressure on that 'super Congressional committee' which can only be a very good thing.

[Mr. P]

Ya know what baffles the hell outta me? S&P can downgrade the credit rating but they still have the S&P 500 on the market that tanks every time ya turn around. :laugh: For me, that says a lot!:cuckoo::bs1::talk2hand::poop::no::dunno::wtf: :pee:S&P

[Gaffer]

Does this mean S&P will now be labeled as terrorists? Buncha conservative racists.

[KarlMarx]

A bit more:

http://legalinsurrection.com/2011/08/sp-drops-u-s-credit-rating-to-aa/



If Congress pays attention, unlikely unless Moody's goes along with S & P, perhaps they will come up with a budget and a real plan, perhaps not needing to raise the ceiling again as early as projected. In any case, it certainly puts pressure on that 'super Congressional committee' which can only be a very good thing.

I once heard that if Congress repealed Obamacare, that would take care of 2.0 Trillion right off the bat.

http://www.weeklystandard.com/blogs/cbo-obamacare-would-cost-over-2-trillion

Also unspent stimulus money accounts for several hundred billion. That's between 2.1 and 2.5 trillion dollars right off of the bat.

[Kathianne]

It certainly seems that the tea party terrorists have taken control of China:

http://www.latimes.com/business/la-fiw-china-response-20110807,0,3901161.story


China demands U.S. 'live within its means'
The largest foreign holder of U.S. treasuries responds to the S&P downgrading by calling for decreases in U.S. military outlays and social spending. By David Pierson Los Angeles Times Staff Writer August 6, 2011, 1:52 a.m.

Reporting from Beijing—


China (http://www.latimes.com/topic/intl/china-PLGEO00000014.topic) called on the United States to "cure its addiction to debts" and "learn to live within its means" in a searing commentary published Saturday by the official New China News Agency in response to Standard & Poor's historic downgrading of the U.S. government's credit rating a day earlier.

China, the largest foreign holder of U.S. federal debt, blamed "short-sighted political wrangling in Washington" for creating the current financial morass that now threatens to undermine the global economy.

"China, the largest creditor of the world's sole superpower, has every right now to demand the United States to address its structural debt problems and ensure the safety of China's dollar assets," the commentary said...




Does this mean S&P will now be labeled as terrorists? Buncha conservative racists.

[Gaffer]

Gee, they want us to downgrade our military, imagine that. I wonder why?

[Kathianne]

Gee, they want us to downgrade our military, imagine that. I wonder why?

I doubt any of us would disagree that the defense budget should be reduced. At the current time with all those drones being used to kill terrorists and family members of despots unliked though, pretty tough to do. ;) Sounds like Obama may be moving into Syria next. :rolleyes:

[Gaffer]

I doubt any of us would disagree that the defense budget should be reduced. At the current time with all those drones being used to kill terrorists and family members of despots unliked though, pretty tough to do. ;) Sounds like Obama may be moving into Syria next. :rolleyes:

Turkey's already up to their eyeballs with syria and they will eventually call on NATO to join them so expect air strikes there soon. The big question then is, what will iran do?

[Kathianne]

Turkey's already up to their eyeballs with syria and they will eventually call on NATO to join them so expect air strikes there soon. The big question then is, what will iran do?

That would be difficult to asses, though I somehow doubt that Iran wants to move against Turkey or US until they are ready. That would just open the possibility of attempts to take out their nuclear programs. I guess it would depend on just how far along they really are.

[Gaffer]

That would be difficult to asses, though I somehow doubt that Iran wants to move against Turkey or US until they are ready. That would just open the possibility of attempts to take out their nuclear programs. I guess it would depend on just how far along they really are.

I don't think iran wants to go against Turkey yet either. They want their nukes online first. Hard to say how things might play out since we don't have a commander in chief. But if there's trouble for Turkey along their border they will call on NATO who will have to respond due to the treaty obligations. War number four. If we don't count somolia and yemin.

If syria goes down the next hot spot will be Lebanon.

[fj1200]

It certainly seems that the tea party terrorists have taken control of China:

http://www.latimes.com/business/la-fiw-china-response-20110807,0,3901161.story


China (http://www.latimes.com/topic/intl/china-PLGEO00000014.topic) called on the United States to "cure its addiction to debts" and "learn to live within its means" ...

Does that mean China will cure its addiction to an undervalued currency and overly cheap labor?

[Little-Acorn]

Does that mean China will cure its addiction to an undervalued currency and overly cheap labor?
Are you kidding? China's been doing leftism and socialism even longer than we have... or at least more intensively.

And they practice its basic rules even more than our home-grown leftists do, starting with: "The rules we insist on are for others, not for us".

[red states rule]

We ned send a big thank you to Obama, McConnell, and John Boehner. They ignored the requirement of $4 trillion in REAL cuts and made the "best deal they could get"

R's caved over being afraid for being blamed for a downgrade and guess what? We got a downgrade anyway! Over the weekend all the liberal media did was blame the R's and the "terrorist" Tea Party so why the hell did they cave?

Also all I saw were calls to raise taxes and increase spending to "stimulate" the failing Obama enonomy so what did the R's accomplish?

[Gaffer]

We ned send a big thank you to Obama, McConnell, and John Boehner. They ignored the requirement of $4 trillion in REAL cuts and made the "best deal they could get" R's caved over being afraid for being blamed for a downgrade and guess what? We got a downgrade anyway! Over the weekend all the liberal media did was blame the R's and the "terrorist" Tea Party so why the hell did they cave? Also all I saw were calls to raise taxes and increase spending to "stimulate" the failing Obama enonomy so what did the R's accomplish? They accomplished getting more TEA next year.

[red states rule]

Meanwhile the liberal media cicle the wagons around Obama and blames the Tea Party






On Monday's Early Show, CBS's Norah O'Donnell promoted the left-of-center talking point that Standard & Poor's recent lowering of the U.S.'s <NOBR>credit rating (http://www.debatepolicy.com/#)</NOBR> is a "Tea Party downgrade." O'Donnell played three sound bites of notable liberals using this line of attack, versus only one opposing from a center-right politician. She also spun Treasury Geithner's decision to stay as "good news for the President."

The correspondent began her report by trumpeting how apparently, "this was supposed to be a week when President Obama was going to turn his attention toward jobs with a positive message. But instead, he's dealing with this talk of a double-dip recession, that the terrible week in the markets last week, and that <NOBR>credit (http://www.debatepolicy.com/#)</NOBR> downgrade."


Read more: http://www.newsbusters.org/blogs/matthew-balan/2011/08/08/cbs-pushes-liberal-talking-point-about-tea-party-downgrade#ixzz1UTTJDLna

[Gaffer]

Meanwhile the liberal media cicle the wagons around Obama and blames the Tea Party

Of course. I'm surprised they didn't get a Bush blame in there too, but that would be stretching it even for them.

[Kathianne]

Of course. I'm surprised they didn't get a Bush blame in there too, but that would be stretching it even for them.

He wanted to keep it short, after all he was 28 minutes late, after a 1/2 being late. He got around to 'his inheritance this evening. ;)

http://news.yahoo.com/obama-says-inherited-economic-problems-001543865.html


Obama says he inherited economic problems<cite id="yui_3_3_0_1_1312864429362177" class="byline vcard">By Jeff Mason | Reuters – <abbr title="2011-08-09T01:03:22Z">3 hrs ago</abbr></cite>



WASHINGTON (Reuters) - President Barack Obama said on Monday he inherited many of the country's problems with high debt and deficits when he entered the White House, sounding a theme likely to dominate his 2012 re-election campaign.


Speaking at a Democratic fundraiser, where families paid $15,000 to get a picture with him, Obama defended his economic record and noted that problems in Europe were affecting the United States.
"We do have a serious problem in terms of debt and deficit, and much of it I inherited," Obama said. The financial crisis, he said, made the problem worse...



So far I've heard from his or his minions it's the fault of:

1. Congress in general
2. Those that won't compromise (he'd be one of 'em)
3. Those 'rich folk' who don't want to pay 'a little bit more.'
4. The tea party
5. Europe
6. S & P's $2T error
7. Bush

Not once has he claimed ownership of anything, other than telling Seals to kill bin Laden.

[avatar4321]

end of the world!!!!!!!!!!!!!

the only deep and fundamental flaw Mr. President is you

End of the world? Hardly

Walk in the park. Hell no.

I think it's time we get our lives in order with God.

[avatar4321]

Gee, they want us to downgrade our military, imagine that. I wonder why?

Ah but we can easily live within our means without downgrading our military. And cut costs there too.

The problem is our government has been on this never say no to spending kick. so its hard to get out of that habit.

[red states rule]

Of course. I'm surprised they didn't get a Bush blame in there too, but that would be stretching it even for them.

and what the liberal media and Obama worshippers want to ignre is the final vote on raising the debt ceiling

The final tally in the House was 174 R's and 95 Dems voted for it, while in the Senate the vote was 74-26 with 28 R's and 45 Dems voting for it

Yet the liberal media and Obama only blame the R's for the end results of the debt ceiling bill