Worlds & Time

Saturday, August 06, 2011

The American Downgrade

What a boring subject to lead off returning after a year absence, but here it is, a post on America's credit rating.

The justification that S&P seems to give for the reduction in credit rating from AAA+ to AA+ of the United States seems to hinge on three main factors:

1. Government instability
2. The possibility of default in the future
3. Possible insolvency issues by not increasing revenues.

It's "the right" as a unified group that are arguing explicitly against new tax revenue (3) and the Tea Party/Michelle Bachmann groups that were against raising the debt ceiling on principal (2). Dems and the left are definitely a party to 1 though, and so they have some responsibility there. But really, if you want to assign blame for this (and really, let's) then it's pretty obvious that one side owns a much, much larger share of this fiasco than the other.

That's why it's hilarious when Michelle Bachmann tries to say that President Obama has "destroyed the credit rating of the United States." Really, she thinks that? Lol.

This is, pretty explicitly, what everyone said the consequences of the default would look like, and she's the one that had no problem arguing for going further than we did.



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