More of the same.
S&P Warns Of Second Downgrade To National Credit Rating If Spending Cuts Aren’t Made
Rob Port • August 6, 2011
Can we admit now that the liberal talking point about needing to raise the debt cap in order to bring certainty to our markets and indicate that we wouldn’t be defaulting on the national debt has been utterly destroyed?
Our “full faith and credit” wasn’t going to be destroyed by not raising the debt ceiling. It’s being destroyed by run-away deficit spending.
One day after lowering the nation’s platinum triple-A credit rating, Standard & Poor’s analysts warned Saturday that the U.S. government could face a second downgrade if the economy continues to struggle and the government fails to make the cuts outlined in the debt ceiling agreement.
The ratings agency on Friday downgraded the nation to AA+ for the first time in history, saying partisanship in Washington is preventing dramatic deficit reduction.
S&P managing director John Chambers told reporters on a Saturday conference call that the toxic mix of a listless economy and political infighting will cause government debt to grow.
“Compared to some other highly rated governments, the U.S. government does not have the proactive ability to put public finances on a firm footing,” Chambers said.In other words, we’re still not serious about getting spending in line.
The only solution is cuts.