S&P’s Chambers Warns: US Faces Another Downgrade Without Budget Plan
The U.S. is lacking a plan to do something about $1 trillion deficits, and will soon face another rating cut in six to 24 months. Depending on the outcome of the November elections and what Congress decides to do about the spending spree this administration insists on, the United States will be cruising for a downgrade that lowers our standing in the world and our creditors — according to John Chambers of Standard & Poor’s.
America has had an AA-plus rating with a negative outlook since August 5, 2011 when the New York-based unit of McGraw-Hill Cos. stripped the nation of its AAA ranking for the first time, citing the government’s failure to agree on a path to reduce deficits.
The U.S. has a one-in-three chance of another downgrade, Chamber said during a recent S&P sponsored Webcast. http://www.moneynews.com/StreetTalk/S-P-US-Downgrade-Budget/2012/02/08/id/428832?s=al&promo_code=E22E-1
I am so frustrated with this administration and Congress. What do these people want for America? Do they really think they can keep spending recklessly and not have a negative repercussion that affects America and our families for decades, perhaps for centuries? If they know what they are doing, then they either have a plan that is very much contrary to the Constitution and the American People or they are too stupid to care and live only for today.
Perhaps, as I have said many times before, the plan is to bust America and turn her upside down. The only way out of such a situation would be to accept a new Constitution and way of life that we would never choose if we were solvent. I believe this is what the elite in Washington have planned for us. However, I find it hard to believe that those I respect could actually be planning the demise of America?
No doubt you have trouble believing that America is on the verge of collapse and calamity, and no doubt you have a hard time picturing America in chaos like this and perhaps in another civil war — Liberal/Progressivism vs Conservative/Constitutionalists. What this means is people will be at war with each other and their government.
The war will be about immigration, state rights, an over-extending government, and conservative values. It will be a war against those who believe in standing by the Constitution and those who want America to change and become part of a Global Society (being more like European nations). These people do not seem to understand that there was a reason the Founders left European government behind them and established a better government. It is the elite, who want more power over the people, that are moving this nation toward a clash over America’s future.
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What needs to happen is balancing the budget with a PLAN that is more that a few months to prevent a government shutdown. The Democrat controlled Congress has not had a balanced budget for how long? Then they waited for the Republicans to come in control and balance the budget but made it impossible to do! Then the scum-bags won’t accept accountability for their lack of action and put the blame of the incoming Republicans. It’s nothing but “stink’n politics” and I am sick of it, as I am sure you are too.
Chambers, managing director of sovereign ratings said, “What the U.S. needs is not so much a short-term fiscal tightening, but it has to have a credible medium-term fiscal plan…That is going to have to say something about entitlements, and that is probably going to have to say something about revenues.”
Bond investors ignored the downgrade, driving Treasury yields to the lowest levels in history, amid concern the U.S. economy was stalling and as Europe’s debt crisis intensified.
Treasurys have returned 3.9 percent since the rating cut and gained 9.8 percent last year, the debt’s best performance since 2008, according to Bank of America Merrill Lynch index data.
“I don’t think anything is going to happen between now and the election in November,” Chambers said. S&P said in August that political brinkmanship over increasing the government’s debt ceiling year showed the U.S. is becoming “less stable, less effective and less predictable” as the Treasury almost reached its borrowing limit before the government reached a compromise.
The “political brinkmanship hasn’t gone away,” Chambers said. “That simply doesn’t happen in other AAA economies.” S&P’s Chambers Warns: US Faces Another Downgrade Without Budget Plan
The bottom line is that the U.S. has to stop spending, has to make a serious long-term budget, seriously do something about entitlements, and stop printing money we don’t have– pushing us into deeper debt.
As American citizens, WE MUST INSIST THAT OUR GOVERNMENT do the required steps mentioned above that gets us out of this mess. Again, this is what we must insist government will do NOW:
- U.S. has to stop spending,
- Make a serious long-term budget,
- Seriously do something about entitlements,
- Stop printing money we don’t have– pushing us into deeper debt.
This year MUST see drastic changes take place or the damage will too severe to fix and America will see a financial melt down that will be disastrous.
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