Speak Out: Well the nations credit rating has been dropped to negative.

Posted by We Regret To Inform U on Mon, Apr 18, 2011, at 10:29 AM:

For all the people that have defended this spending tell me how it helped. When the leeches can vote themselves largess from the treasury........

Replies (47)

  • I guess I should have given you the link.

    http://blogs.forbes.com/steveschaefer/2011/04/18/little-surprise-in-sps-negative...

    From S$P

    "Because the U.S. has, relative to its 'AAA' peers, what we consider to be very large budget deficits and rising government indebtedness and the path to addressing these is not clear to us, we have revised our outlook on the long-term rating to negative from stable"

    I wouldn't invest in this company if it were a company. Would you? There's too much waste, inexperienced decision makers, and complete disregard for the financial problems they are are facing. The books are dripping in red ink and the CEO says he needs to spend more to get them out of debt.

    -- Posted by We Regret To Inform U on Mon, Apr 18, 2011, at 4:25 PM
  • Nil

    What I was doing was comparing the country to a business as which it should be run.

    This is a posted link from wheels. It shows the part no one is talking about. The interest.

    http://www.youtube.com/embed/VtVbUmcQSuk

    What happens if we have to pay 1 or 2 points more? I am just worried about the continued talk about reducing the deficit and not the debt. We need to take the whipping now instead of prolonging the agony which is going to multiply. Countries that did are recovering without gaining a huge mountain of debt.

    -- Posted by We Regret To Inform U on Mon, Apr 18, 2011, at 6:59 PM
  • Regret- you can give him facts until you are blue in the face, he will never get it.

    The democrats will never accept the truth that they are burying our country in debt.

    -- Posted by Skeptic1 on Mon, Apr 18, 2011, at 8:35 PM
  • We are in serious trouble, many people still think they are walking the yellow brick road to see the wizard of oz and pay no attention to it but this is resality we must start now getting our financial house in order or were out of business. We are broke have borrowed and spent to much money and owe about every country in the world money that we have borrowed, but we can save it by passing Congressman Paul Ryan proposeed budget by cutting over six trillion dollars over a ten year period I know the President don't like it as he believes in borrowing and spending money we don't have. Out of seventeen countries the S&P serves we now are the most risk and this has never happen. Serious budget cuts are going to hurt but it must be done in order to get the books balanced and start drawing the debt downward. We received our warning today from the S&P now it is left up to us.

    -- Posted by swampeastmissouri on Mon, Apr 18, 2011, at 9:15 PM
  • This is something several of us have been fearing for a while. Although Regret did err a bit in his original posting, this is a warning by one of the major credit rating bureaus that we cannot continue down this road of reckless spending without consequences.

    If the credit rating is cut, it will mean that the nation's ability to borrow money will be affected. If nothing else, the interest rates we pay WILL go up. And, when you owe $14+ trillion a one percent hike in interest means billions more in tax revenue that can not be spent on national defense or any of the 'entitlements'.

    This is a warning shot across the bow. If we choose to ignore it and continue our profligate spending we WILL pay the price. And we will not like the price we pay!

    Wheels' posting of that video was timely!

    -- Posted by Robert* on Mon, Apr 18, 2011, at 9:23 PM
  • I had a friend that used a line of credit on a houseboat at K. Lake, cloths, vehicles, and vacations. When the crunch hit his construction business slowed down with it.

    The bank raised his risk and nailed him for a few more points on his line of credit and made him put up everything he had. They finally called him in. He is driving a truck now and everything is gone.

    That's why I worry. Our gov is doing the same thing. Buy now and worry about paying it back later.

    -- Posted by We Regret To Inform U on Mon, Apr 18, 2011, at 10:15 PM
  • Nil

    Look it up yourself. I'm not worried about other countries. The dollar was the king and now Standard and Poor's has said we are now negative and you act like it is normal to have poor credit in these days.

    So we should keep going until we owe $225K per person? My question is: At what point do we start being fiscally responsible? After the point of no return?

    -- Posted by We Regret To Inform U on Mon, Apr 18, 2011, at 10:26 PM
  • Yes Nils, and what aabout some of those other Eurpoean Union contries Greece, Italy, Portigal, and Ireland. One the other hand (from what I've red) Poland has acted more wisely in getting its financial house in order.

    Dance with the Devil and pay the piper...sooner or later.

    -- Posted by voyager on Mon, Apr 18, 2011, at 10:33 PM
  • Nil, I wonder if the 800lb monkey in the room is that the $ is at risk of being replaced as the world's standard currency.

    -- Posted by Old John on Tue, Apr 19, 2011, at 1:47 AM
  • Hopefully Congress will respond by taking four relatively simple, straightforward and very obvious steps.

    1. Raise the debt ceiling cleanly, without passionate political posturing.

    2. Decrease government spending across the board by eliminating programs and a blanket 5% reduction in all government salaries.

    3. Reform individual and corporate tax code to close all loopholes and eliminate 90% of all deductions.

    4. Modify Social Security and Medicare by adjusting rates, eligibility dates and individual contributions to the programs.

    -- Posted by commonsensematters on Tue, Apr 19, 2011, at 7:21 AM
  • "Because the US has, relative to its AAA peers, what we consider to be very large budget deficits and rising government indebtedness and the path to addressing them is not clear to us, we have revised our outlook on the long-term rating to negative from stable."

    quoted from Standard & Poor statement

    Nil, This seems very clear to me. I will attempt to help you understand what they are saying.

    The US has, at present, a $14+ trillion dollar national debt. The administration has proposed budgets projecting large (500 billion to 1 trillion dollar) deficits for the next ten years. The CBO has run these figures and found that this will result in $1 trillion annual interest payments by the year 2021. Because the present administration refuses to take these figures seriously and address the spending problem we face, Standard & Poor has decided to inform the investors of the world that the economic road we have chosen leads to economic ruin for ourselves and anyone who chooses to invest in us. This is the first step! We can address the problem and retain our AAA+ rating if we desire to!

    -- Posted by Robert* on Tue, Apr 19, 2011, at 8:01 AM
  • "While our nation should cut our excess spending reaching that conclusion from credit ratings doesn't fit well with the data. For example the Netherlands has debt equal to 344% of their GDP (compared to 97% in the US) yet their bonds are still top rated. All of the Scandinavian countries with their enormous social spending and debt to GDP ratios significantly higher than ours also have perfect credit ratings."

    Remember, S&P also gave high ratings to the mortgage-backed securities that nearly killed our economy in 2008.

    -- Posted by nolimitsonthought on Tue, Apr 19, 2011, at 8:05 AM
  • commonsensematters wrote:

    "1. Raise the debt ceiling cleanly, without passionate political posturing.

    2. Decrease government spending across the board by eliminating programs and a blanket 5% reduction in all government salaries."

    Why can't number 2 be conditon for number 1? It makes sense. If you give them an increase in their credit line without setting conditions to slow the timeframe before the reach the new one, what have you accomplished?

    "Raising the debt ceiling cleanly" has become the new mantra of the left, straight from the Democrat talking points. This is coming from the 'never let a crisis go to waste' crowd, too. You talk a lot about 'the right' repeating what they hear on talk radio and Fox News, and yet you repeat this line. Since when has it ever been incumbent upon the Congress to not set conditions for such things? I would say it is irresponsible to not demand some action, such as your 'number 2' above, in exchange for such a thing.

    Mr. Obama himself tried to hold the debt ceiling as hostage when he was in the Senate. Now, he says that was a 'mistake', but only because the shoe is on the other foot, methinks.

    -- Posted by Shapley Hunter on Tue, Apr 19, 2011, at 8:05 AM
  • You are the government, as am I. In a government "of the People, By the People, and for the People", the People are the government.

    -- Posted by Shapley Hunter on Tue, Apr 19, 2011, at 9:28 AM
  • We are doing a poor job of selecting leaders. Maybe it's because the pool from which we draw is so filthy - methinks we should clean it more often.

    -- Posted by Shapley Hunter on Tue, Apr 19, 2011, at 9:52 AM
  • Congress needs to set conditions on raising the Debt Ceiling and they need to do so in such a way that it is ironclad and Obama cannot wiggle around them.

    The following link shows what our so called leader thinks of a deal, even one he has signed into law. There was a time when two gentlemen could shake hands and seal a deal. And if they were true gentlemen neither would even think of breaking trust with the other.

    Now we have a so called leader who thinks nothing of reneging on an agreement that he himself signed into law as the country's chief executive. He is a disgrace to the country.

    http://www.newsmax.com/InsideCover/Obama-czars-healthcare-climatechange/2011/04/...

    -- Posted by Have_Wheels_Will_Travel on Tue, Apr 19, 2011, at 10:13 AM
  • Wheels, Boortz reminded us this morning of the proclaimation made by one of his advisors early on. "We are ready to rule"

    The president rejects the roll of leader in favor of ruler IMHO.

    -- Posted by Old John on Tue, Apr 19, 2011, at 11:26 AM
  • Old John,

    I guess when you are the Messiah you can do as you damned well please. At least that is what it appears is going on.

    -- Posted by Have_Wheels_Will_Travel on Tue, Apr 19, 2011, at 12:03 PM
  • Maybe the EU countries are rated higher because of their willingness to tax the living h*ll out of their citizens. Maybe our rating is lower because we are fighting higher taxes and that places our debt at risk.

    To fix it, CUT THE SPENDING... it's not a revenue problem.

    -- Posted by not_sorry on Tue, Apr 19, 2011, at 3:14 PM
  • Remember, S&P also gave high ratings to the mortgage-backed securities that nearly killed our economy in 2008.

    -- Posted by nolimitsonthought on Tue, Apr 19, 2011, at 8:05 AM

    So did Barney Frank and the Democrats that would not throttle the loans when Bush ask them to. Check with the BF-HNIC. The Democrats carried the torch on that one. I can't believe you brought it up.

    -- Posted by We Regret To Inform U on Tue, Apr 19, 2011, at 6:07 PM
  • When you elect a congressman based on how much federal funding he/she will bring back to the district, then you will end up with elected officials that are concerned with how much funding they can extrapolate from the government. NO ONE ask where this money is coming from.

    -- Posted by LarryB on Tue, Apr 19, 2011, at 7:23 PM
  • Thats right Larry

    -- Posted by We Regret To Inform U on Tue, Apr 19, 2011, at 8:27 PM
  • I have no problem paying my taxes. Since I have been a taxpayer my money has been mismanaged but now they are mismanaging my great grandchildren's money long before they are born. I;m mad at all of them but I really hate hearing the "all we need to do is tax the rich" BS. Thats not enough,

    Since it is election time no one will talk about this because they will lose votes:

    "For the first time since the Great Depression, households are receiving more income from the government than they are paying the government in taxes."

    "Households received $2.3 trillion in government income support in 2010.

    Government cash accounts for79 percent of household income growth since 2007.

    Since 2007, household tax payments have fallen by $312 billion."

    http://www.thefiscaltimes.com/Columns/2011/04/18/Budget-Deficit-Government-Hando...

    -- Posted by We Regret To Inform U on Tue, Apr 19, 2011, at 8:38 PM
  • I left out: For the 120 million tax payers that is $16K each for 1 year. That is just for income support.

    -- Posted by We Regret To Inform U on Tue, Apr 19, 2011, at 8:44 PM
  • LarryB wrote:

    "NO ONE ask where this money is coming from."

    A lot of us are asking. It just seems that few in Washington D.C. are doing so.

    -- Posted by Shapley Hunter on Wed, Apr 20, 2011, at 8:37 AM
  • So should it be raised or not?

    not

    -- Posted by FreedomFadingFast on Wed, Apr 20, 2011, at 11:01 AM
  • Spaniard wrote:

    "So should it be raised or not?"

    I think I answered that. It should be raised, but the agreement to raise it should be tied to some sort of spending reform. CSM acknowledges the need for curtailing spending, he just doesn't think it should be a requisite for raising the debt ceiling. I disagree. Methinks if we give in on increased spending authority sans limits, we'll just get more spending, sans limits.

    -- Posted by Shapley Hunter on Wed, Apr 20, 2011, at 11:28 AM
  • I am not government, I have no debt.

    -- Posted by BCStoned on Wed, Apr 20, 2011, at 11:24 AM

    You owe the government.

    ..............................................................

    Shap

    DeMint has the right idea. If they agree to a balanced budget amendment it should be passed. Man would we every hear the whining on that.

    http://www.foxnews.com/politics/2011/04/18/sen-demint-threatens-filibuster-debt-...

    -- Posted by We Regret To Inform U on Wed, Apr 20, 2011, at 12:53 PM
  • BC

    I'm envious. I owed 'em and had to send 'em a check the other day. Something about the obama admin. needing $25 million for "non-lethal aid" to Libya in order to get our next Vietnam started.

    -- Posted by FreedomFadingFast on Wed, Apr 20, 2011, at 1:50 PM
  • DT

    You owe them about 30K over and above. So far.

    -- Posted by We Regret To Inform U on Wed, Apr 20, 2011, at 1:53 PM
  • Will the Chinese finance that 30K for me?

    -- Posted by FreedomFadingFast on Wed, Apr 20, 2011, at 1:56 PM
  • I think that would work... borrow from the Chinese to pay the Chinese your part of the debt. Would that be your interest bill then, or would Obama pick it up?

    -- Posted by Have_Wheels_Will_Travel on Wed, Apr 20, 2011, at 2:39 PM
  • I wouldn't count on BO picking anything up for me. I tried to do an amortization sheet on 14 trillion last night to see what it would take to pay the debt down and it was too many digits for the columns.

    Anybody know of one?.

    -- Posted by We Regret To Inform U on Wed, Apr 20, 2011, at 3:38 PM
  • To hell with it. I'm just going to blame Bush and pass the debt on to my kids.

    PS....Anyone know when obama is going to begin his presidency?

    -- Posted by FreedomFadingFast on Wed, Apr 20, 2011, at 3:43 PM
  • By the way, what did they do with bloody?

    -- Posted by FreedomFadingFast on Wed, Apr 20, 2011, at 3:58 PM
  • DTower wrote:

    "PS....Anyone know when obama is going to begin his presidency?"

    After several false starts, he's apparently decided to give up on this one and try for another. His campaign says that Mr. obama has shown that he has prven himself to be a very strong candidate when running against executive mismanagement and, given that the current administration has proven to be the worst of the worst, they think his campaign will be very effective.

    -- Posted by Shapley Hunter on Wed, Apr 20, 2011, at 4:11 PM
  • SH

    Good for Mr. obama. I wish him the best of luck.

    BC

    al Qaida and their sponsors appreciate it. Did you withhold Fed and FICA taxes out of that check as dictated by gov't law?

    -- Posted by FreedomFadingFast on Wed, Apr 20, 2011, at 4:27 PM
  • BC, Is it kind of like the trucker that sported a sign on his trailer saying this truck pays $xxxxxx in fuel tax, permits, liscense, federal-state-local etc: Don't like my driving call 1-800-big govt. ?

    -- Posted by Old John on Wed, Apr 20, 2011, at 4:36 PM
  • I guess I missed it, what did Bloody say?

    -- Posted by Old John on Wed, Apr 20, 2011, at 4:39 PM
  • When all else fails, be Frank, blame Bush.

    -- Posted by Old John on Wed, Apr 20, 2011, at 7:10 PM
  • Barney was not charge when fannie and freddie were going gangbusters from 2003 to 2006. Bush the republican congress were.

    -- Posted by Spaniard on Wed, Apr 20, 2011, at 7:02 PM

    Again........

    http://www.youtube.com/watch?v=cMnSp4qEXNM

    -- Posted by We Regret To Inform U on Wed, Apr 20, 2011, at 8:29 PM
  • BTW Ike. Jumping Jim Jeffers.

    -- Posted by We Regret To Inform U on Wed, Apr 20, 2011, at 8:36 PM
  • BC

    I never thought of it by the hour. That should lift some eyebrows.

    -- Posted by We Regret To Inform U on Wed, Apr 20, 2011, at 8:41 PM
  • So now we have cut the budget....then we turn around and GIVE $25,000000.00 to Libya...is it just me or are other people asking "Where the heck did the money come from?" If we are in debt at $44k per person, that 25 Million Dollars would have aleviated a lot of debt.

    Didnt we just flip flop on the budget cut?

    -- Posted by mallethead on Thu, Apr 21, 2011, at 1:40 AM
  • -- Posted by Shapley Hunter on Thu, Apr 21, 2011, at 10:15 AM
  • Bloody,

    Yes. Here it is:

    http://www.cbo.gov/ftpdocs/121xx/doc12130/04-15-AnalysisPresidentsBudget.pdf

    "Impact of the President's Proposals on

    the Budget Outlook.

    If the President's policy proposals were enacted, the resulting $1.43 trillion deficit for 2011 would be slightly larger (by $26 billion) than the shortfall that CBO projects under its current-law baseline (see Table 1-3).

    Those policies would increase outlays by $25 billion and decrease revenues by $1 billion in 2011. In 2012, the deficit under the President's budget would be $83 billion greater than the deficit CBO projects in its March baseline, mostly because outlays would be higher.

    Starting in 2013, the deficits that CBO projects under the President's budget diverge more widely from those in the baseline. For the 10-year projection period as a whole, the deficit that would result under the President's proposals--$ 9.5 trillion, or 4.8 percent of GDP--would be $2.7 trillion greater than the cumulative deficit projected under current law. About $2.2 trillion of that difference stems directly from proposed policy changes; the other $0.5 trillion reflects additional interest payments resulting from increased borrowing."

    -- Posted by Shapley Hunter on Thu, Apr 21, 2011, at 10:50 AM
  • And the similar comments from the CBO's analysis of Mr. Ryan's Proposal:

    "Effects of the Proposal on the Federal Budget According to CBO's projections.

    "Chairman Ryan's proposal would significantly reduce mandatory outlays for health care relative to the amounts projected in both ofCBO's long-term scenarios. In addition, the proposal would substantially reduce spending on other mandatory programs (other than Social Security) and d iscretionary programs compared with the amounts projected in CBO's long-term scenarios. Those reductions, combined with no proposed changes to Social Security and with the path of revenues specified by the Chairman's staff, would result in much lower deficits and debt in the long run than the amounts in CBO's scenarios. Under the proposal, the federal budget would show a deficit of about 2 percent of GDP in 2022, a slight surplus in 2040, and a surplus of about 4 percent of GDP in 2050. The ratio of debt to GDP would fall sharply--from about 70 percent of GDP in 2022 to about 10 percent in 2050.

    -- Posted by Shapley Hunter on Thu, Apr 21, 2011, at 10:55 AM

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