US Debt

US DEBT RESULTING IN DOWNGRADE FACES CRITICISM FROM BERNANKE…….

The fact of the matter is, you can’t overspend your budget, sometime down the line the debt will catch up with you, and overpower you, it’s that simple. So it’s interesting to read the Nobel prize winning economist’s blog piece, in which he states the following in regards to Standard & Poors’ downgrade of the US’s credit rating. It’s all the Tea Party’s fault.

S&P and the USA

OK, so Standard and Poors has gone ahead with the threatened downgrade. It’s a strange situation. On one hand, there is a case to be made that the madness of the right has made America a fundamentally unsound nation. And yes, it is the madness of the right: if not for the extremism of anti-tax Republicans, we would have no trouble reaching an agreement that would ensure long-run solvency.

What’s the word the Brits use? Ah yes, ‘bollocks’. The financial  markets and credit instituions are flustered over the US’s massive expansion of its debt over the past few decades, but especially even more so now under Obama’s disastrous term, which has seen the largest pileup of debt by any sitting US president.

The Tea Party is the response and the answer to the debt crisis, not the problem, which has offered many serious solutions to handling it, cut public spending, avoid increase in taxation.  if the Tea Party’s package went through, Not Boehner & Company’s, the market would have been assured and S&P would not have downgraded the US credit rating.

The bigger problem however is welfare-Wall Street, which operates along the same lines as private, and most importantly, public sector unions, (who pale in comparison btw) who are the biggest recipients of state welfare (aside from the arms industries) and pay more for re-election campaigns than anybody. The banks give the money, the politictians take it, and then give it back.

It’s called operating a slush fund elsewhere, and the only real money made, in the end, is by entrepreneurs actually sweating and making commerce. The system of corporate welfarism has to end in order to make the politics in Washington more effective. Right now it’s like dedicated drunks offering sobriety classes. KGS

2 Responses

  1. So Bernanke has been called on overspending and endless expansion of the money supply..?

    About time. Tough luck for the Boss Keynesian here, might need a new job soon 🙂

  2. Maybe Timmy needs to get a new job also. He did say that there was no chance of a downgrade, but what does he know?

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