I believe that President Barak Obama caused the downgrade of America from a AAA rating to a AA+ rating by the S&P. I know, that is a bold statement but one I believe is true.
We won’t get into a whole conversation about if the US can really default on a T-bill since we print money…That is not the point.
It wasn’t 2 weeks ago that President Obama came out and said that if we didn’t raise the debt ceiling that the US would default on their loans. So the S&P believed him. They believed him in saying that 1 deal not passing the legislature could break the US. I don’t know if I believed him but needless his words had consequences.
Now President Obama comes out saying how ridiculous it is that the S&P would downgrade the US as an investment because we are so stable. Really? As my momma used to say, you were either lying then or lying now.
By the by, I think it is interesting that the S&P sited our leadership as the reason for the downgrade….
..But what really haunts the administration is the very real prospect stoked two weeks ago by Standard Poors that Barack Obama could go down in history as the president who presided over his countrys loss of its gold-plated triple-A bond rating..Obama could win and lose at the same time striking a deal to avoid default but failing to pass muster on the substance of that deal with credit agencies which could go ahead and downgrade the rating anyway..Financial analysts say such a move would hit Americans with more than 100 billion a year in higher borrowing costs but its not just that. They hope to force a deal that not only raises the debt ceiling but also makes deep cuts in government spending and eats into the nations deficit..The threat of a downgrade is very damaging to all of us and that would be a product of the dysfunction of Congress said Rep. Peter Welch D-Vt. who led a faction of House Democrats who argued for a clean debt-limit increase early in the process only to watch escalating chatter about the Armageddon of a missed deal feed scrutiny of the nations fiscal health..SP raised the threat of a downgrade July 14 by declaring that raising the debt limit alone might not be enough.