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SparrowHawk

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S&P Cuts U.S. Ratings Outlook to Negative
A stark warning from a credit-rating firm about the U.S. government's fiscal problems stoked concern on Wall Street and in Washington on Monday, pushing global stock markets lower and intensifying political divisions about the best way to tackle the country's growing deficits.

The U.S. debt now stands at $14.2 trillion and is expected to balloon in part because of rising costs for health care, retirement and other so-called entitlement programs, and the interest costs on existing debt. S&P said that even if a short-term deal is reached to contain deficits, any agreement could later be undone by politicians

Is it me? Or has this essentially been the message of the Tea Party? Now reinforves by Wall Street

First Turd on the fan
 
S&P Cuts U.S. Ratings Outlook to Negative


Is it me? Or has this essentially been the message of the Tea Party? Now reinforves by Wall Street

First Turd on the fan

Ni Hao,

Otherwise known as hello in Mandarin Chinese. Don't fear the Tea Party, fear the debt owed to China. My family is friends with a fella known as T Boone Pickens. Saudia Arabia and China will own us one day.

http://www.youtube.com/watch?v=4LUumD0MwL8
 
Ni Hao,

Otherwise known as hello in Mandarin Chinese. Don't fear the Tea Party, fear the debt owed to China. My family is friends with a fella known as T Boone Pickens. Saudia Arabia and China will own us one day.

http://www.youtube.com/watch?v=4LUumD0MwL8

Ni Hao to you as well. We are certainly headed that way thanks to the last ten years of gross negligence by the resident of 1600 Penna Avenue. The ability of this economy to absorb debt has been squandered in ten short years. Between ill conceived foreign interventionism/imperialist actions and unaffordable social engineering and an economic recession we find ourselves on the eve of destruction.

We still have resources to pull up from this horrible crash landing, however do we possess the will to do so
 
Ni Hao to you as well. We are certainly headed that way thanks to the last ten years of gross negligence by the resident of 1600 Penna Avenue. The ability of this economy to absorb debt has been squandered in ten short years. Between ill conceived foreign interventionism/imperialist actions and unaffordable social engineering and an economic recession we find ourselves on the eve of destruction.

We still have resources to pull up from this horrible crash landing, however do we possess the will to do so

I have read your comments on the pilots' forums and understand you have the BIG picture.

Nuff said...

Ciao (Italian)
 
Unbelievable......Obama administration officials tried to keep S&P rating at ‘stable’

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.

Can you imagine if previous admin had asked s&p to hold back on announcing the downgrade? There’d be calls for a special counsel. 😱
 
I told you I'm no fan of the Republican Party, I couldn't have said it better than the Libertarian response to Paul Ryan.

Tuesday, April 5, 2011
Libertarians say Paul Ryan is worse than Bill Clinton

WASHINGTON - In response to House Budget Committee Chairman Paul Ryan's new budget proposal, Libertarian Party Chair Mark Hinkle issued the following statement today:

"Americans hoping to get real about our national debt just got sucker-punched by Republican Paul Ryan.

"Republicans want to spend $40 trillion over ten years. That averages a staggering $4 trillion per year. As recently as 2000, federal spending was only about $1.8 trillion.

"They also want to increase the federal debt from $15.0 trillion to $23.1 trillion. I hope our children and grandchildren enjoy paying interest on that extra $8.1 trillion.

"People should not judge the quality of this Republican plan by the standard President Obama has set. Everyone knows Obama is a big spender. Democrats rarely campaign on cutting government. What this budget shows is, Republicans are hypocrites. They have no intention of cutting the federal government down to size. In 2021, Paul Ryan still wants the feds to be spending 19.9% of GDP. That's a higher percentage than during Democrat Bill Clinton's second term. In 1997, federal spending was 19.5% of GDP, and it dropped to 18.2% by 2000. Paul Ryan is worse than Bill Clinton.

"Another unfortunate but predictable thing about Paul Ryan's budget is that it continues to mollycoddle the Pentagon. Paul Ryan is the Military-Industrial Complex's best friend. He apparently can't find one penny to cut from Obama's bloated levels of military spending. Only a big-government Republican could come up with language like 'reinvesting $100 billion in higher military priorities.'

"It's interesting that when the Republicans controlled both houses of Congress and the White House from 2001-2006, they did nothing to shrink government, or even slow down government growth. On the contrary, back then, Paul Ryan was busy voting for expensive foreign wars, No Child Left Behind, and the huge 2003 Medicare expansion. More recently he's voted for the TARP bailouts and even ethanol subsidies.

"We Libertarians propose eliminating federal functions that are not authorized in the Constitution. Furthermore, Libertarians propose ending foreign wars and foreign troop deployments, allowing huge cuts in military spending. Libertarians would cut the federal government down to less than 10% of GDP, and we'd keep cutting once we got there."
.

I think a really good solution lives inside of this press release. A balanced budget amendment usurps congressional authority in some ways. Suppose had a Constitutional amendment that tied the Federal budget to the GDP. It would work something like this. Congress gets the 2011 GDP figure. The amendment specifies the percentage of GDP that the Government can spend, say 14%. By law the Budget cannot exceed that number and revenues must exceed expenditures by 5%. Congress divides up the pie, taxes at the appropriate level to fund the government. This type of plan provide incentives for the government in several ways.

The more the economy grows the more dollars are available for programs because the percentage doesn't float, it's fixed.

In times of recession we don't sink into an abyss of red ink.

In short it forces the government to live within their means just like the citizens who fund their existence
 
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