Saturday, August 6, 2011
Obama Doesn't Understand Debt Period
The debt crisis held the country's attention. Republicans in Washington worked on the underlying problem of too much government spending(yes, Gort too much spending, not spending alone) during the negotiations while Obamacrats wanted tax increases aka MORE government spending.
This spendthrift President threw billions at the economy and look where it is today. But that action wasn't enough to ruin the United States.
On Tuesday last week he continued the train wreck by catapulting our debt to new heights. In one day we went from $14.294 trillion to $14.532 trillion adding $239 billion. (and I guess that was George Bush's fault again). Obama, in one day, used up 60% of the debt ceiling increase You can read all about it in this Washington Times article.
The previous one-day record debt increase was $186 billion, set on June 30, 2009. Imagine that, another Obama record.
Standard and Poors for the first time in history announced a downgrade of our credit according to this ABC NEWS article.
For the first time ever, the United States lost its perfect credit rating as Standard & Poor's reduced its U.S. long-term debt assessment from AAA to AA+ with a negative outlook.
In announcing the move late Friday, the ratings agency said a deal this week to reduce the nation's debt did not go far enough and exposed paralyzing political dysfunction.
The downgrade could cost the government and ordinary consumers billions of dollars by jacking up interest rates the U.S. must pay on its $14.4 trillion debt and a host of rates consumers pay for items such as mortgages, car loans and credit cards.
The move by S&P follows decisions by two other major ratings agencies, Moody's Investor Service and Fitch Ratings, to maintain the United States' AAA rating, though Moody's assigned a negative outlook.
When will this President and the Democrats get it. Enough is enough. Excessive government spending is not a Tea Party issue. It is a crisis for all Americans.
Barack Obama was ill prepared for this job but more importantly so are those who surround him it seems.