« Obama Has Now Caused This:The United States Has Lost Its Sterling Credit Rating | Main | Communist China Demands OBAMA and His Government Spending Frenzy and Taxing Craze ‘live within its means’ »
August 07, 2011
S&P Says It Favors Spending Cuts Over Tax Hikes To Fix Credit Rating ~ Are You Listening Obama????
S&P Says It Favors Spending Cuts Over Tax Hikes To Fix Credit Rating
Standard & Poor’s laments the possibility cuts to entitlement programs won’t materialize and the decreasing likelihood of new tax revenues.
The decision by Standard & Poor’s to downgrade the U.S. credit rating to “AA+” at once laments the possibility that cuts to entitlement programs will not materialize and the decreasing likelihood of new tax revenues. But it appears to give more weight to the need for more spending cuts, as it warns that a further credit rating downgrade is in the cards if the U.S. does not trim spending.
In contrast, while the report indicates that new tax revenues would help mitigate the debt crisis, failing to find these revenues does not immediately put the U.S. at risk of another downgrade.
Specifically, the report warns directly that a further downgrade to “AA” status could occur within the next two years if there is “less reduction in spending” than what was agreed in the debt ceiling agreement. S&P said one factor that could lead to this second downgrade is if the minimum $1.2 trillion in spending cuts under the debt ceiling agreement does not occur.
Wild Thing's comment..........
Obama owns this, after they passed the first bill .."Cut,Cap, Balance" .....and then IF the Senate and Obama would have signed that one this would not be happening.
Posted by Wild Thing at August 7, 2011 04:45 AM
Comments
Republicans caved in and blew it as usual.
Posted by: Bob A. at August 7, 2011 11:39 AM
