During the debt ceiling debate, S&P announced that none of the plans being considered – the Reid Plan or the watered down House plan, and especially not the compromise plan – were enough to stop the downgrade. Rather than pay attention, our elected representatives took America off the cliff.
While we should blame all of the members of the House and the Senate, as well as Obama, the brunt of the blame for this calamity goes to the Democrats. The Republican culpability is mainly for listening to the Democrats and the President and not sticking to the Ryan Budget and Cut, Cap and Trade. Weak leadership from all of the Republicans was on parade as the out of control Democrats a) failed to put up their own plan and b) has the Republicans debating and negotiating amongst themselves for a plan that Democrats would accept.
Now, the hapless Treasury Department is attempting to smudge the messenger. We owe more than we make in a year. Nothing more needs to be said to justify the downgrade. And after warning that it would come to this, how can anyone be surprised that S&P followed through on the warning. To do anything less would only harm their credibility. They made the statement that none of the plans would prevent a downgrade, and their word was golden.
And, of course, the moronic mantra from the left began almost immediately. “Raise taxes, Raise taxes”.
Democrats were wrong about the stimulus, wrong about a recovery summer, wrong on unemployment staying under 8% and wrong about the downgrade. They are also wrong on raising taxes.
Raising taxes will not increase government “revenue”. It will slow the economy even further and actually reduce the amount of tax money the government takes in. Already, the downgrade will be working against jobs creation. Financial wizards are calling for Americans to pull their money from ALL investments. I have never heard this much talk of financial Armageddon on the horizon before. Ever. Financial advisers on the television are urging people to pull back on all of their investments. That advice in and of itself can (and will) make the situation far worse. Remember when Democrat Chuck Schumer questioned the solvency of IndyMac Bank? It turned out to be a self fulfilling prophecy as his words caused an absolute panic as depositors made a run on the bank to withdraw their cash.
No one can know for sure what next week will bring, but there is the potential for a mass exodus from the markets. And if that happens, the talk of a double dip recession will quickly become a full blown depression.
A true leader would do something, or say something before Monday morning to stop the potential for a financial blood bath on Wall Street. But this president has failed to lead at every opportunity, and will do so once again, and just allow a market crash to happen – until he can find someone else to blame.
And now that America’s Credit Rating has been lowered, the horrible deal that Democrats caused and to which Republicans acquiesced has just taken a turn for the worse. The Congressional Budget Office will need to reexamine the numbers and see what the higher interest rates we will now pay will do to the smoke and mirrors deal.
Most of us already know.
The spineless leadership of the Republican Party must now move to repeal the bad deal they just made and replace it with another plan that will work. And this time, be prepared to shut down the government. The Democrats have terrorized the Republicans long enough.
At this point, there is not one Republican who voted for this plan that cause us to lose our AAA rating that deserves reelection.
And if America thinks former President George W. Bush dug a hole, well, you ain’t seen nothing yet!
It is time to fix this!