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A so-called ObamaDem-dubbed “tea party downgrade” would have occurred before, not after, the debt ceiling was raised.

Standard & Poors cites “weakened effectiveness, stability, and predictability of American policy-making and political institutions” as reason for historic downgrade of America’s credit rating.

The credit downgrade did not occur when tea partier Republican congressmen made known their preference for not raising the debt ceiling. The downgrade did not occur when the House passed Cut, Cap and Balance and Boehner I.

The tea partiers favored $4T in spending cuts. S&P stated before the final compromise bill was signed by President Barack Obama, that a bill cutting at least $4T would prevent a downgrade. The bill signed by President Barack Obama didn’t come close to meeting tea partier and S&P demands.

No, the downgrade occurred after the passage of a bill opposed by many tea partiers.

So, are we to believe the description of the S&P downgrade by Obama adviser David Axelrod and Senator John Kerry as precipitated by tea partiers? Upon what basis? Was it the tea partiers that promised default on two different dates, months apart, during which time there was and would always have been more than six times the cash on hand in the U.S. Treasury needed to pay bondholders and thus prevent default?

 

Of course not.

 

S&P justified the downgrading of America’s rating from AAA to AA+, thusly:

“The downgrade reflects our view that the effectiveness, stability, and predictability of American policy-making and political institutions have weakened at a time of ongoing fiscal and economic challenges.”

To believe “Tea Party Downgrade” talking points of the Obama Administration and the Democratic Party, one would have to believe that Standard & Poors considers tea partier advocacy of S&P’s own $4T Rx as ineffective, unstable and unpredictable.

Isn’t it more likely that S&P and the markets considered Obama’s promise of default dates as evidence of his instability and unpredictability? Weren’t such reckless threats more akin to the acts of an estranged spouse acting out of spite than the responsible leader of a great nation?

Obviously, and we said so at the time of Obama’s threats:

President Obama’s default drop dead date  pronouncements  could precipitate a financial crisis that is unjustified based upon the actual funds available to pay interest on the debt.

We had thought that S&P’s action was wrong due to the now higher ratings of nations that depend upon our economy. We have reconsidered that assessment because the leaders of Germany and France haven’t made spiteful default threats.

Natural law still obtains and so the consequences of decades of accumulated debt were inevitable and would have taken years to correct even if ObamaDems had enacted policies conducive to recovery in their super-majority heydays of 2009-2010.

Instead they chose ObamaCare reform and government worker stimulation instead of policies designed to cultivate economic recovery.

The American president, unlike the leaders of Germany and France, seems determined to repeat many of the mistakes extended the only recession of the last 100 years that was longer than the current one that began in 2008.

But unlike FDR, he has no penchant for soothing fireside chats and had no alcohol prohibition amendment to repeal. Its just too bad we can’t fire him sooner than next Election Day.

 

Mike DeVine


Legal Editor – The Minority Report

Atlanta Law & Politics columnist for Examiner.com

“One man with courage makes a majority.” – Andrew Jackson

More DeVine Gamecock rooster crowings at Modern ConservativeHillbilly PoliticsUnified Patriots,  Political Daily and Conservative Outlooks. All Charlotte Observer and Atlanta Journal-Constitution op-eds archived at Townhall.com.

 

4 Responses to Obama’s spiteful, unstable default threats caused downgrade

  • Bruce says:

    Mike,
    The analogy I will have to use for this one is “The Perfect Storm”. Warm air from a low-pressure system coming from one direction, the president wanting to sit and compromise with the republican(tea-party) house. A flow of cool and dry air generated by a high-pressure from another direction, the republicans with their just say no to any tax increase at all. Tropical moisture provided by a hurricane, S&P guilty of sitting by and letting the banks sell mortgages and toxic assets and bundle them together as CDO’s and stamp them AAA from 2001 to 2007 causing the housing crash we have today, had to prove their worthiness.
    The whole stand-off between the president and the congress was not about the debt ceiling that was just a tool. It came down to taxes and nothing else. The president would have given the republicans the cuts they wanted, which is what was making his base angry with him, in return for the tax increases he wanted. The republicans wanted no part of it because they couldn’t be seen as working with this president. Neither side was willing to give on their stand on taxes. You have to admit this is politicking at its best or worse depending upon your perspective.
    Then S&P their credibility was already in the tanks so they had to do something to make them look like they were doing their job. Think about it why didn’t the other agencies lower their rating. Moody and Fitch made warnings but stopped short.
    So I find it a little unsettling that you blame the president for all of this and refuse to see this one is a failure of everyone in the system. There is a systemic problem here. I have to agree with StephC(and you won’t see this very often) “the system is broken”
    Black in America Baby……The revolution has been televised
    PS

    Been on vacation it was fun to lay in the sun and not worry about anything but when my next mojito was coming

  • Mike DeVine says:

    People are broken and have been since Eve bit the apple and have succumbed for decades to making Uncle Sam daddy and taxing the rich to pay for middle class goodies on debt.

    The budget system that pre-ordains baselines that automatically go up each year is broken.

    But our Constitutional system is the worst except for all the others in history. So what “system” do you and StephC refer to as “broken”?

  • Bruce says:

    Mike,

    Come on you know I am not the intellectual giant that you are and I have a pretty simple view of life. I can’t speak for anyone else but I look at it this way. Marriage is a sound fundamental institution. But when the people within that marriage can no longer come to an agreement as to how they move forward in that marriage the “system breaks” at least for that marriage. I was not saying anything about the constitution, my comment was that things have become so polarized between the two political parties and business interests play such a big role in politics that nothing is getting done, we neither got any real reductions or tax increases, really nothing happened except the downgrade. Hence the system is broken.

    Black in America Baby…..The revolution has been televised

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