Quote:
Originally Posted by Tinordi
This is directly from S&P:
The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy … [This] weakens the government’s ability to manage public finances …
So yeah, pretty much exactly what I said.
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So when you talk about political brinksmanship do you mean Obama telling the elderly that they might not get checks if the debt ceiling isn't raised or do you me Obama saying the America would default on their debt on Aug 2 if he didn't get his debt ceiling raised? Perhaps your refering to Obama saying he would veto the bill everytime the House came up with a budget?
The fact is that the Democrats hadn't tabled a budget since before the last election and were unwilling to work with the House's bills this spring and summer. They wanted a higher debt ceiling and higher taxes and were willing to only give promises of some future cuts which they would have no legal obligation to keep.
4 trillion dollars in cuts would have saved the credit rating. Their was 6 trillion in cuts in the House's April budget. It was rejected without debate and no alternative was offered by the Senate.
And for the record: The credit agency's 2 trillion dollar mistake was in the report they presented to the federal government. The mounds of data they looked at wasn't mistaken. The US government failed to even come close to the 4 trillion dollars in cuts they needed to come up with. Also most of the cuts they promised to make were after the next election. That makes them worthless promises.