Is the Tea Party to Blame for S&P's downgrade?

In almost 100 years, the credit rating of the world's finest empire gets downgraded? The dow this week fell by more than 600 points? lets not discuss the wild trading we witnessed yesterday. But who really is to blame for this mess?

LINK 1

The Republicans, led by the Tea Party, have finally succeeded in another step in their quest to wreck the US economy, oddly believing that it will help them win the 2012 election. Their slash and burn, no-revenue dogma that won out in the manufactured debt crisis that came to a head last Monday failed at the one goal it should have set for themselves; that is, to calm the markets and provide assurance of the strength of the US economy

LINK 2

The statement from the S&P effectively declares that, were it not for the intransigent extremism of the Tea Party, the country’s credit rating would still be triple-A. And if the press would stop pretending that the Tea Party has any real significance, the country would be better off in a multitude of ways. So thanks to Tea Party dementia and media madness America can proudly enter the 2nd Dip of its Great Recession.

It is strange that the tea party predicted the downgrade..is it coincidence? or propaganda?

LINK 3

Budget deal doesn't matter, analysts say Whether or not Congress and the White House reach a budget and deficit deal before the Aug. 2 deadline doesn't really matter, some economic analysts say. The United States is headed for a credit rating downgrade regardless. "The outcome won't be quite as scary as a default," according to one media report, "but financial markets would still take a blow. Mortgage rates could rise. States and cities, already strapped, could find it more difficult to borrow. Stocks could lose their gains for the year."

You will be poorer by:

1. Liberal spending projects and devalue of the US dollar.
2. Liberal taxation policies and decrease/flee of jobs.
3. Conservative spending projects and devalue of the US dollar.
4, Conservative taxation polices and rapid acceleration of default due to lack of revenue
5. Tea Party cuts, which will choke the economy via an inverse effect of "trickle down economics".
6. Tea Party taxation polices (see conservative outcome).

Either way, you will be poorer, not because of a global conspiracy, but because we have lived beyond our means. It's time for every mindset to accept this. In all honesty, while the tea party will result in a similar short-term outcome, their long-term polices will serve us better. Their ideas certainly need "tweaking," but I do believe parts of their philosophies offer us a better future than the typical ideas tossed around by the two-party system.

Here is Beers conversation discussing the downgrade...before and after

Before



After...



Link 4

You may have never heard of David Beers but every finance minister in the world knows of him," noted Reuters in a recent – and rare – profile of the analyst, who doesn't even have a Wikipedia page. It is Beers who recently downgraded Greece's credit rating to near-junk status, thereby making the EU's proposed rescue plan much more difficult. And it is Beers who now demands the US reduce its long-term budget deficit by $4tn – rather than the congressionally approved $2.4tn – and threatens to impose the first-ever US government downgrade, from AAA to AA. It isn't just the Tea Party holding the US to ransom.

"Yadda-Yadda
(your team bad... )

hope that made you feel better:

I suppose the "tea party republicans" submitted a spending bill to other "tea party republicans" who debated with "tea party republicans"?
Who passed and then signed a bill that clearly didn't meet the expectations of the ratings agencies( who explicitly, publically spelled out what would occur if specific levels of cuts were not made!).

Where was the rest of the obviously absent government? At Obama's BIRTHDAY BBQ fund raiser? Talk about shallow explanations and"limited world views".

The tea party is 2 years old. The debt is older. The tea parties span of existence covers less time then Barry has had to spend us into oblivion, exactly the reason the tea party exists.

Plus the old wisdom that they are doing whatever they are accusing you of makes me think its a MSM setup...The Blue Blood Republicans don't like the tea party any more than the Democrats do. This is how the power structure works...common enemies and all that...

reply to post by LiveEquation


Oh no, God forbid...it was

The political brinksmanship of recent months

Standard and Poors - Research Update: United States of America Long-Term Rating Lowered To 'AA+' On Political Risks And Rising Debt, Burden; Outlook Negative
www.ft.com...

The political brinksmanship of recent months highlights what we see as America's governance and policy making becoming less stable, less effective, and less predictable than we had previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy.

Note: Thanks to peck420 for this link to S&P, from a thread and his/her post here...www.abovetopsecret.com...

reply to post by LiveEquation


Actually I blame Yale, Princeton, Harvard and all of America's Law schools. Most of those we elect have a degree in Law or Economics.

So, I guess that make the American populace resposible don't it?, as we elected these crooks.

yes they are. america needs more debt. especially loans given by the communists.

/sarcasm

the timing was wrong but what they wanted to do was correct.
hopefully this is sorted out before sh*t trully hits the fan.
also, i believe america can still take loans based on AAA credit ratings because many other major credit rating institutions still have america on AAA.

Originally posted by newcovenant
reply to post by LiveEquation

 

Oh no, God forbid...it was

The political brinksmanship of recent months

www.standardandpoors.com... DUS_Downgraded_AA%2B.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&blobwhere=1243 942957443&blobheadervalue3=UTF-8
Sorry this link isn't working. I will fix it....

The political brinksmanship of recent months highlights what we see as America's governance and policy making becoming less stable, less effective, and less predictable than we had previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy.

Note: Thanks to peck420 for this, from a thread and his/her post here...www.abovetopsecret.com...

edit on 6-8-2011 by newcovenant because: (no reason given)

Weren't you just shown in the other thread to have excluded page.......8 from this.


Not just the Tea Party there Sniper.

This would not have happened if "Cut, Cap, and Balance" was passed. This is what the TEA Party wanted, and Obama and his minions stopped it.

reply to post by LiveEquation

*sigh*
(It's going to be a long night)
While the Tea Party wanted no tax increase, no debt ceiling increase it did want less spending.
The current administation (and the past one, lets be fair) support a keynesian economic model. That includes the idea that government has to be involved in everything.
The concept of government spending is abhorent to the Tea Party.
Everyone under the sun is looking at Bush/Tea Party/GOP/Obama/mortgages for the downgrade.

No one is speaking up about spending cuts except the Tea Party. So they get the automatic blame for the current wee-fest.

Cut spending and the problem goes away. Simple.

reply to post by macman



You don't sleep do you?

Weren't you just shown in the other thread to have excluded page.......8 from this. Not just the Tea Party there Sniper.

No, in fact I am not the original poster.

I did not use the same link, since it didn't work for me in my post here.

Fresh link. Complete story. Read it and weep.

Originally posted by newcovenant
reply to post by macman

 

You don't sleep do you?

Weren't you just shown in the other thread to have excluded page.......8 from this. Not just the Tea Party there Sniper.

No, in fact I am not the original poster.

I did not use the same link, since it didn't work for me in my post here.

Fresh link. Complete story. Read it and weep.

edit on 6-8-2011 by newcovenant because: (no reason given)

But yet, you failed to include the actual report from the credit agency.

*In the corner crying now* BBBBBOOOOOOOOOOOHHHHOOOOOOO

reply to post by newcovenant


And no I don't sleep.
A couple of kids, wife, 2 jobs, small business.

I will sleep when I am dead.

Originally posted by macman

I will sleep when I am dead.

You have GOT to read my signature.

On topic-Tea Party will save America.

Originally posted by beezzer
..No one is speaking up about spending cuts except the Tea Party. So they get the automatic blame for the current wee-fest.

Cut spending and the problem goes away. Simple.

There was an article published recently titled "Is spending really good for the economy?"

Everywhere I turn I’m being told to get out there and spend so this economy will improve. I recently read a Guest Opinion in this newspaper in which the author wrote, “Americans are not living up to their responsibilities. We don’t spend enough.

So, should we spend our way out of this recession? It does make sense. You go to a store and spend your money, the store owner has more income and spends that in another store, and so on. Everyone’s sales are up and life is good.”

Spending money is what defines an economy. The tea party is way off mark here

Originally posted by beezzer

Originally posted by macman

I will sleep when I am dead.

You have GOT to read my signature.

On topic-Tea Party will save America.

Yep, and I hope that I die in my sleep.

It is strange that the tea party predicted the downgrade..is it coincidence? or propaganda?

Strange that someone better understands the situation and potential consequences than others? If others predicted no down-grade and the were right, are they responsible for that?

If I predict a car accident at rush hour; am I at fault or do I simply understand how traffic and people work?

What you and most of the talk on the issue forget is that:
1: We have lived well beyond our means and the downgrade is quite appropriate
2: democrats and republicans spent us into this situation in the first place
3: everyone who wanted new revenue who conceded to said tea partiers enabled the agenda and are therefore just as responsible.

Don't forget that the tea party was usurped by much of the republican party and has been used as little more than controlled opposition.
If blame is to be cast it is upon all of Washington; few if any are innocent.

Originally posted by LiveEquation

Originally posted by beezzer
..No one is speaking up about spending cuts except the Tea Party. So they get the automatic blame for the current wee-fest.

Cut spending and the problem goes away. Simple.

There was an article published recently titled "Is spending really good for the economy?"

Everywhere I turn I’m being told to get out there and spend so this economy will improve. I recently read a Guest Opinion in this newspaper in which the author wrote, “Americans are not living up to their responsibilities. We don’t spend enough.

So, should we spend our way out of this recession? It does make sense. You go to a store and spend your money, the store owner has more income and spends that in another store, and so on. Everyone’s sales are up and life is good.”

Spending money is what defines an economy. The tea party is way off mark here

edit on 6-8-2011 by LiveEquation because: (no reason given)

PEOPLE should spend. Governments should not.
Again, you're endorsing keynesian ecnomics. Fine. I get it. For you; taxes good, spending cuts bad.

It's just a good thing not everyone thinks as you do.

Originally posted by TreadUpon
The tea party is 2 years old. The debt is older.

*Ding* *Ding* *Ding* "We have a winner!"

Pretty hard to put the blame on a 100+ year old deficit onto a party that's been in existence for 2 years. The whole problem is spending more than we have. S&P said back in July that they would cut the rating, not if the debt limit wasn't raised, but if the spending wasn't reduced.

We may lower the long-term rating on the U.S. by one or more notches into
the 'AA' category in the next three months, if we conclude that Congress
and the Administration have not achieved a credible solution to the
rising U.S. government debt burden and are not likely to achieve one in
the foreseeable future.

If Congress and the Administration reach an agreement of about $4 trillion, and
if we to conclude that such an agreement would be enacted and maintained
throughout the decade, we could, other things unchanged, affirm the 'AAA'
long-term rating and A-1+ short-term ratings on the U.S.

www.standardandpoors.com...

We have to live within our means. We can't keep giving everything to everyone or taxing everyone more so the government can pick and choose who gets what. I was talking just yesterday with a lady who was born in 1983 in the USSR. She remembers waiting in line to get bread and food. The more taxes the government takes in the more they get to decide what when and how you do things or what you get to keep.