Obama’s Negative Rating
Despite backroom dealing and likely a number of veiled threats, the credit ratings agency Standard & Poor just formally changed its outlook on the United States as a debtor from “stable” to “negative” and said that Obama’s government could lose its AAA rating if officials fail to bring its spending in line with revenue.
The Obama administration privately urged Standard & Poor’s in recent weeks not to lower its outlook on the United States — a suggestion the ratings agency ignored Monday, two people familiar with the matter said.
Treasury Department officials had been discussing with S&P whether the ratings agency should change its outlook on the United States to “negative” from “stable,” an indication that the country could lose its crucial AAA rating in coming years over its soaring debt levels.
Treasury officials told S&P analysts that they were underestimating the ability of politicians in Washington to fashion a compromise to curb deficits, a Treasury official said. They argued a change in ratings was not needed at this time because the debt was manageable and the administration had a viable plan in the works, the official said.
But S&P analysts told Treasury officials on Friday that they were unmoved — and released a report that expressed skepticism that the political parties could come together on how to bring spending in line with revenue.
Amazing! Standard & Poor stood up to the Obama Regime and told them that their profligate deficit spending was not only egregious general theft but a poor risk for anyone who might consider loaning them money.
They also rejected Obama’s claims of being able to reach his form of a “bipartisan” agreement between the Republicans and his Democrats which would actually manage and reduce America’s deficit.
Things will get tougher from this point forward, both for the Obama Regime and for America. That might be a good thing in the long run though. Most wastrels won’t change until forced to do so.
Tags: America | Deficit | Democrats | Economics | Economy | Politics | Republicans | S & P | Taxes
April 22nd, 2011 at 8:34 pm
Obama’s negative rating in the polls is directly related to the price of oil and gasoline . President idiot is calling for investigations . Bush and Clinton did the same things when oil spiked during their terms . The high gasoline prices during the end of George W. Bush’s Presidency helped elect our idiot in chief .
It was great to make political hay and blame Bush as the friend to big oil . Well you live and die politically with oil prices . Now Obama is proving he can’t do a thing about gasoline costs . Mr. Green energy is impotent .
Oil is going up in part because our currency is being devalued . Not all of the excess liquidity is going into gold and the stock market . The rich are buying oil and bidding up the price . And Barry can scream all he wants about Wall Street doing it, but the international rich are joining Wall Street and he can’t scare them with his class warfare .
Part of the trouble is the Saudis have cut production . They are pissed at the way Obama treated their buddy Mubarek and his criticism of their actions in Bahrain .