Monday, August 08, 2011

No more AAA Rating for the U.S.

Well, S&P has done it. They’ve downgraded the U.S. credit rating. The administration fired back with criticism of S&P claiming it made a $2 trillion dollar error. S&P fired back calling the whole “debt ceiling” process a debacle and warned of other downgrades to follow.

While they sort that out markets around the world tumbled and in Europe the central bank initiated a bond buying program to heads off a default by Italy or Spain.

Talk about an impending economic catastrophe.

Allow me to quote myself from February of 2010 “…not taking steps to correct the deficit will lead to, not only a new recession, but a potential economic catastrophe that would make the upheaval of the Great Depression look like boom times.”

We are in serious trouble and I don’t honestly see us making any progress to out of the morass we’re in. Balancing the budget has to happen and it can’t happen only with budget cuts. A tax increase is not only inevitable, but necessary, so let’s get working on it already.

Obama has not done a good job here and neither has the congress. The problem is the two parties have totally opposite objectives and answer to two totally different electoral bases. I say we kick the southern states out of the union and let them go elect their Tea Party and see how well that works out.

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