For the first time in American history, thanks in huge part to the incompetence of the most ill equipped man ever to be elected president, the United States has lost its AAA credit rating. President Barack Obama has led this country on a downward spiral with his “spread the wealth” mentality that seek to punish those that are successful with higher and higher taxes and rewards the sluggards in our society (aka Obama’s base) with free cells phones and food stamps.
With Obama, its take from the “Haves” and give it to the “Have Nots”. That’s what he believes in according to his mentor Saul Alinsky. And Obama is doing just that to destroy the country, by design, to remake it into a socialist’s paradise with big government picking up the pieces.
Mission accomplished, Mr. President!
Reuters
The United States lost its top-notch AAA credit rating from Standard & Poor's on Friday in an unprecedented reversal of fortune for the world's largest economy.
S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about the government's budget deficits and rising debt burden. The move is likely to raise borrowing costs eventually for the American government, companies and consumers.
"The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics," S&P said in a statement.
The decision follows a fierce political battle in Congress over cutting spending and raising taxes to reduce the government's debt burden and allow its statutory borrowing limit to be raised.
On August 2, President Barack Obama signed legislation designed to reduce the fiscal deficit by $2.1 trillion over 10 years. But that was well short of the $4 trillion in savings S&P had called for as a good "down payment" on fixing America's finances.
The White House maintained silence in the immediate aftermath of S&P downgrade.
The political gridlock in Washington and the failure to seriously address U.S. long-term fiscal problems came against the backdrop of slowing U.S. economic growth and led to the worst week in the U.S. stock market in two years.
The S&P 500 stock index fell 10.8 percent in the past 10 trading days on concerns that the U.S. economy may head into another recession and because the European debt crisis has been growing worse as it spreads to Italy.
U.S. Treasury bonds, once undisputedly seen as the safest security in the world, are now rated lower than bonds issued by countries such as Britain, Germany, France or Canada.
'DAUNTING' IMPLICATIONS
As the focus for investors shifted from the debate in Washington to the outlook for the global economy, even with the prospect of a downgrade, 30-year long bonds had their best week since December 2008 during the depth of the financial crisis.
Yields on 10-year notes, a benchmark for borrowing rates throughout the economy fell as far as 2.34 percent on Friday -- their lowest since October 2010 -- also very low by historical standards.
"To some extent, I would expect when Tokyo opens on Sunday, that we will see an initial knee-jerk sell-off (in Treasuries) followed by a rally," said Ian Lyngen, senior government bond strategist at CRT Capital Group in Stamford, Connecticut.
More here
I’m sure Obama is going to blame George Bush for his own mess. The 2012 election can’t come soon enough to send this fraud back to Chicago, or Kenya!
Memeorandum
