It is “unprecedented” news that Standard & Poor’s downgraded the long-term sovereign credit rating on the United States of America From AAA to AA+ due to the Congress’ and the president’s failure to cut $4 trillion of spending from the federal budget.
Democrats have begun blaming the GOP and the Tea Party for this historic and potentially devastating impact on the American people.
The federal deficit that Barack Obama “inherited” from George Bush was about $455 billion for the fiscal year that ended on Sept. 30, 2008.”
Barack Obama promised he was going to spend his way out of the 2008 financial crisis:
“Obama, speaking to reporters at his Washington transition office, said he didn’t want to get into specific budget numbers because his proposal is still being worked out with lawmakers and has yet to be submitted for debate. But he expects a trillion-dollar deficit before the next fiscal-year budget is even proposed.
“We’re already looking at a trillion-dollar budget deficit or close to a trillion-dollar budget deficit, and that potentially we’ve got trillion-dollar deficits for years to come, even with the economic recovery that we are working on at this point,” Obama said.
The president-elect was lobbying Capitol Hill as the 111th Congress convenes, attempting to pitch an economy recovery package estimated to hit about $775 billion.
Asked about concerns of increased deficit spending, Obama said: “We know that we’re going to have to spend money to jump-start the economy.”
But he also pledged his stimulus plan will not include pork-barrel projects.
The package will set a “new higher standard of accountability, transparency and oversight. We are going to ban all earmarks, the process by which individual members insert projects without review,” Obama said. “We’re not having earmarks in the recovery package. Period.”
Obama said he is planning to establish an oversight board to meet publicly and issue reports to Congress on how the money is being spent.
Democrats are promising swift action on the recovery program that is the first order of business for the Obama administration.”
“We will hit the ground running … to address the pain being felt by the American people,” House Speaker Nancy Pelosi, D-Calif., promised Monday as she welcomed Obama to her office.”
Now about that “George Bush deficit” that Obama keeps blaming……
Reporter Dan Spencer reminded us back then that even though George Bush was president, the Democrat-controlled Congress increased the national deficit 23% after it took over in 2007.
“When the Democrats regained control of Congress on January 4, 2007, the national debt was $8,670,596,242,973.04 — that’s $8.67 trillion.
In the two years Pelosi and the Democrats have been in charge, the national debt has grown to $10,699,804,864,612.13 — that’s $10.70 trillion.
Since Pelosi and the Democrats regained control of Congress $2,029,208,621,639.09, or $2.03 trillion, has been added to the national debt. That is a 23% increase in two years the Democrats have controlled Congress.”
The Democrat controlled Congress gets the credit for the soaring national debt because under the Constitution Congress controls the purse strings:
Article I, Section. 8.
The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States;
To borrow money on the credit of the United States;”
President Obama is to blame for the credit downgrade and here is why
“It is president Obama and his Obamacrats that have earned the credit here, with their never ending and all to successful efforts to spend, tax and borrow too much.
The federal deficit was about $455 billion for the fiscal year that ended on Sept. 30, 2008.”
The Tea Party Cannot Be Blamed for the Credit Downgrade
The left is blaming the Tea Party House Republicans for the credit downgrade because they refused President Obama’s demand to raise taxes.
In fact,the S&P report [see page 4]does not say that taxes need to be raised:
“Standard & Poor’s takes no position on the mix of spending and revenue measures that Congress and the Administration might conclude is appropriate for putting the U.S.’s finances on a sustainable footing.”
Erick Erickson, RedState.com: “There was only ever one plan that did what S&P said was required — $4 trillion in cuts with bipartisan support. That’d be Cut, Cap, and Balance — a plan that cut $4 trillion and got bipartisan support in the House of Representatives.As Democrats tonight, and some Republicans, lash out and blame the Tea Party for causing the United States to lose its credit rating, it is worth pointing out that only the Tea Party offered up a plan to avoid what happened.This is precisely why the GOP should have held the line.”
Beltway Confidential:“Throughout the debate over the debt ceiling, the media did all of us a great disservice. They reported as though the Republicans were threatening to ruin America’s credit unless they got their way.
Closer to the truth: If only conservatives like Sen. Jim DeMint, R-S.C., had gotten their way — i.e., huge spending cuts — perhaps we wouldn’t have just been downgraded by S&P. DeMint predicted ahead of time that none of the debt deals on the table except for “Cut, Cap and Balance” would prevent a downgrade. He has been vindicated.”