Harry Reid Uses S&P Downgrade Of U.S. Debt To Call For Raising Taxes…
Never let a crisis go to waste.
(The Hill) — Standard & Poor’s decision to downgrade the nation’s credit rating reinforces Democrats’ call for increasing tax revenue, Senate Majority Leader Harry Reid (D-Nev.) said Friday.
In a statement, Reid said:
The action by S&P reaffirms the need for a balanced approach to deficit reduction that combines spending cuts with revenue-raising measures like closing taxpayer-funded giveaways to billionaires, oil companies and corporate jet owners. This makes the work of the joint committee all the more important, and shows why leaders should appoint members who will approach the committee’s work with an open mind — instead of hardliners who have already ruled out the balanced approach that the markets and rating agencies like S&P are demanding.
The credit rating firm said the recent plan to raise the debt limit while reducing the debt “falls short” of its expectations, but S&P also offered broader condemnations of America’s political process.
Posted by ZIP on Friday, August 5, 2011, at 11:04 pm | 
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What took him so long? Oh…they had to wake him up from his nap.
Is that a coffin lurking just behind Harry? Let’s hope so!
Now I am not as brilliant as Harry Reid but what would raising taxes do to get us out of Obama’s and the Commiecrats’ mess?
The dims are panicking to cover their asses. This is yours Harry, you grinning idiot.
they will do anything to solve this issue,anything but stop spending
I blame the RINOs for giving in.
No balls Republicans have to be shown the door.
They had the power to do something big but instead they caved to the Commie in the White House.
all I can say is OMG. These people are nuts, they are absolutely nuts, if I owned a business in this country, I would be absolutey frightened that these are the fools in charge of this country and even more scary, they are the same ignorant fools in chrage of getting us out.
Raising taxes on the job creators will be the straw that breaks the back of America. Bam’s mission will be accomplished.
I’d like to use this event as an excuse to sock Harry in the other eye.
The American People are cannon fodder to those bastards.
Did any of you bother to read the S&P report?
Hey Nevada…YOU SUCK. Vote this piece of shit OUT OF OFFICE!!!
Fool!
Senator, you’re mistaken. It means to CUT DOWN on SPENDING. My 12 year old just said that to me when he overheard me talking.
Politics over people is what’s destroying this country. It’s suppose to be the other way around.
I sure hope bad times don’t befall you and you have to find out the hard way what it’s like to actually work to earn something. But I do hope you see the light and realize trading money for votes is not a true value. When you bribe someone, it means your product will not sell itself due to it’s poor quality.
Get. Your. Fucking. Socialist. Demoncratic. Hands. Out. Of. My. Pocket.
You idiot troglodytes do not understand that a pragmatic approach implementing common sense solutions rather than ideologically pure pablum are the only hope for pulling our country out of the morass created during the Bush years.
How many e mails, how many protestors, how many elections ,
will it take for them to read :
No More TAXES: STOP SPENDING , STOP SPENDING.
Reid, Peloski and Obama need to be FIRED, IMPEACHED OR WHATEVER
Do we need to take the gavel and hit them over the head.
I have to balance my money, the state has to balance it’s money
so the federal government needs to balance.
but first get rid of a lot of COMMITTEES, several depts especially the dept of energy, osha, tie down the air force one, Obama needs to stop touring and blowing more smoke up my ass……Everyday have to use Mute button on my TV. My blood pressure can not take anymore……………I am not a terrorists, I am a citizen who obeys the law and pays my taxes and I am tired of their scare tactics.
Obama and Ried just don’t get it, they are failures, complete and utterly total failures on economic policy’s. Obama should be made to wear a Dumce Hat, he is an idiot and has ruined the economy with his Tax and Spend mentality. All of his Top aides have quit, the boat is sinking fast now and he wants to add more Tax burden to the Business community, that’s insane… he maybe?
The entire Country has lost faith in this Clown, even the Black Community is in worse shape now with 29% unemployment, 50% of all Blacks 18 to 25 die, they are aborting fully 1/3 of all babies, poverty has risen 47% within the Black Community. On top of all that you have Gun Runner, Ton’s of Cocaine for Snitches, and questions remain about his newly released birth certificate’s authenticity. Flush Obama and Save America……
HOW MANY TIMES DO WE AS TAX PAYERS HAVE TO BE KICKED DOWN THE ROAD? WHEN WILL WE VOTE THOSE IDIOTS OUT OF OFFICE. THEY MAKE 13 to 14 THOUSAND A MONTH…. DO THEY REALLY CARE WHAT WE HAVE TO PAY FOR FOOD AND GAS? THE GOVERNMENT LEASES A VEHICLE FOR THEM, GIVES THEM AN OFFICE AND STAFF FOR FREE, FREE HEALTH CARE AND FULL SALARY FOR LIFE. IF THEY DIE OF OLD AGE, THEN THEIR WIVES CONTINUE TO GET THE FULL BENEFITS AND PAYCHECK. WHY SHOULD THEY CARE ABOUT US. THEY LIE TO US TO STAY IN OFFICE AS PARASITES, DAMM THEM ALL.
People are stupid to believe that we can tackle the debt without tax hikes.
SORRY the math doesn’t work.
Let’s get out of the Middle East first. Than lets take a look at the budget. I for one do not want my tax dollars going over there, not when the home land is falling apart.
Harry just don’t get it,,,,if your house was living on credit cards, and you reached you credit limit, and you called the bank and requested a raise in your limit,,,they would l;ook at your history, seeing if any other revolving debts that were there when you opened, are now paid off, if not, they would inquire about your income, and decline your increase, and you would therefore be forced to change your spending habits,,,,,,can anyone tell me why they raised the credit limit at all, which is the main reason for the down grade, the country’s amount of debt.
Reid is clueless! No where in S & P’s statement does it mention raising taxes. It calls it’s decision a reaction to the inability of government to cut at least 4 trillion from the deficit. It is a direct result of the coming 14 trillion in deficit spending enacted by both Obama and Bush. Don’t believe any of the democratic heads in any tier of government. Pelosi, Reid, and Obama are pure egalitarians who only care about their status. They could care less about the us economy and economics as a science. I hate the fact that Google news always headlines articles with utterly misleading titles like this one, which distorts the nature of S & P’s decision. In 2012 the political scum have to go, or the greatest and most free country in history will continue to decline.
Majority of the American people want the government to cut spending not raising taxes. Politicians should listen to their voices.
@republicans-caused-the-problem
The time for me being pleasant and social is now over. You all full of shit so much that it is running out your ears.
pablum (jesus christ)…what did you do?…see that on a cereal box?
You need to read the report before you comment. It puts the blame on both parties, as it should, for not raising the debt ceiling sooner and for the political sideshow that went on. However, the report specifically singles out the Republicans for their inflexibility and failure to consider a balanced approach to the budget deal (yes, raising taxes!). The rich are enjoying a very low tax rate in the US, lower than most of us are paying, and it’s time they contributed more to the recovery. Same goes for corporations, many of which have found loopholes and gotten out of paying taxes completely. The Tea Party didn’t care if they destroyed the country by taking the debt ceiling debate hostage, and what happened today was a direct result of their actions. Boehner said “I got 98% of what I wanted,” Norquist got most Reps to sign a pledge of No New Taxes EVER, so there you go. McConnell also is on record saying how this will now be the new way of doing things in Washington, and the S&P considered all this in their decisions. This one’s on you, Republicans (this coming from an Independent). Congratulations!
United States Constitution (Fourteenth Amendment):
THE FULL FAITH AND CREDIT OF THE UNITED STATES GOVERMENT SHALL NOT BE CALLED INTO QUESTION
Who’s guilty of violating the above. Answer: The entire federal government is including Obama.
read page four. Especially the bottom of page four.
http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldata&blobtable=MungoBlobs&blobheadervalue2=inline%3B+filename%3DUS_Downgraded_AA%2B.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&blobwhere=1243942957443&blobheadervalue3=UTF-8
I’ve got a better idea Reid, how about just resigning so you can go back to your pomegranate trees?
Go back to watching FOX. It’ll make you even less intelligent.
Reid and the other Dems are insane…the more money you take out of circulation, is the less that goes into the economy. After all this, the Dems are still playing political games. And other than the die-hard asses who want to see this country go down the metaphorical toilet, they will never be forgiven for it.
@Rob “people are stupid to believe we can tackle this debt without tax hikes”
The only stupid one is you! Tax hikes will do next to nothing to lower this debt. And will only deepen the recession.
I don’t know what kind of math your using, but don’t use it to balance your checkbook.
And as far as ME wars, we can start with the one your buddy Obama calls his non-kinetic war.
BTW, has anyone seen the numbers for Obama’s nod to NATO: Libya?
Mind boggling. Keep the bug spray handy the trolls will be out tonight.
FAA-I guess you (and all the other Dem’s, I know you said you were Ind) won’t be happy till the 5% pay 100% of all the taxes in America. Here’s a radical idea,,,have the 50% of the people who pay NO Fed Tax pay just a little,,,,how does that fit into your “Balanced Approach?”
Go back to watching FOX. It’ll make you even less intelligent.
———-
you must watch FOX
@FAA
Are you referring to me? I own a business and if you add up all the taxes I pay, it’s well over 50%. I do my part.
The problem is leeches and slugs suckling off the proverbial government teat, in addition to worthless libs bamboozling trillions away and no accountability as to where it went.
Federal revenues vs. expenditures…
Under Bush = 2.0
Under Obama = 9.2
Obumbler is over 4 fold worse than Bush. No contest. Go back and read more.
Sorry FAA, the rating was lowered because this administration is borrowing to such an extent that they may not pay it back, it has nothing to do with the ceiling which is arbitrary and is nothing more than a political chip. Obama and the Democrats have expanded gov’t by 30% and their spending has no end in sight. A decreased employment pool also means less revenue to fund the increased sive of the gov’t. Obama saw this coming and refused to curb his spending adding 4.5 trillion unnecessary dollars into circulation, much of which was wasted on unions, bailouts and idiotic programs. This is Obama’s economy and should be blamed for it.
Looking at these comments, I’m absolutely convinced that this country is overflowing with total fucking idiots.
Read the report, its 6 pages.
Why is the image of Harry Reid dangling at the end of a hangman’s noose on a gallows erected on the Capitol Building steps as punishment for his crimes against this nation such a pleasant thought?
We need to raise taxes – taxes are REVENUE. We need revenue in addition to cutting to get out of this mess. This is a proven fact historically. Both Republican and Democrat presidents have raised taxes when it was necessary, this is not something that just the Democrats do (Reagan did it, too). We need to end the wars we are in, and don’t forget that the costliest ones were started by Bush, don’t blame Obama for everything. Afghanistan and Iraq are bleeding us to death! BUT we’ll also need for the rich to start paying more in taxes (their tax rate is at around 18%) and we need for corporations to start paying them, too (do you remember the story about GE paying NOTHING for 2010 because of all the loopholes they’ve taken advantage of?) We need to be rational and pragmatic about this.
I read the S&P report. The down grade report stated”The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics.”
People, read “Congress and the Administration” both failed, Democrats and Republicans.
Why? S&P wrote “We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process.”
Prolonged controvery seems to be the answer. Read the S&P report for yourselves: http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldata&blobtable=MungoBlobs&blobheadervalue2=inline%3B+filename%3DUS_Downgraded_AA%2B.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&blobwhere=1243942957443&blobheadervalue3=UTF-8.
You probably will not read it.
Patriotic Logic – most of the deficit under Obama came from Bush-era policies that the current administration has mostly continued. The Republicans are more to blame for this mess we’re in, but I do also blame the Dems for not doing enough to stop this.
I see the new lib talking point is “read the report.”
Answer this fucknuts, why did Texas have their credit rating UPGRADED while they CUT taxes?
Your answer will sound something like this:
ummm, ummm, ummmm, ummm. Extremists! Racists! ummmm, ummm, ummmm.
And who was the head of GE hanging out with? At the WH more than any other visitor,,,And I beleive you forgot two items, however small they maybe to you,,,,One,,,the 50% of the people who pay nothing, and Two,,,,the fact that Obama Health Care makes more deficit spending than both the wars,,,,but don’t let the facts get in the way of a good story. Nite
Miles – we’re going to spend ourselves to death through defense spending, that’s how all empires fall at the end and we’re not doing anything to change that story.
Miles – also, of course the head of GE hangs out in the WH, that’s nothing new. In that regard, there’s no difference between the Dems and the Reps.
FAA
Raising taxes will crush what’s left of an already destroyed economy.
Do you really still believe Keynesian is a valid theory of economics? Even in far-left Mass my college professors told us it was bullshit but they had to teach it to us anyway.
FAA says: August 5, 2011 at 11:35 pm
Go fuck yourself. Have you got a clue as to what the (truly) rich do when confronted with confiscatory taxes? Do you? They put their money out of reach. Opps, less “revenue”. Do you know what corporations do? Do you? They raise their prices, they layoff, they hire less, they invest less , etc. (if they simply don’t uproot to some friendlier environment). Opps, less “revenue”. Guess what? Now YOU’RE “rich”. Hope you put away enough to retire to a low tax country with no extradition or that you enjoy the taste of Alpo.
@FAA
Nice try. Obumbler owns the bulk of this. But to be fair, ALL 535 plus the 2 in the Exec branch are to blame to some degree.
Check your history…Bush tried 17 times to stop the debacle occurring at Fannie/Freddie and was shot down by the dems. The Iraq war monies were a mere pittance compared to the vast quantities wasted by obumbler.
IMO the root of this mess is something we never hear in the MSM. Millions of home owners have lost equity in their homes or in other words, have lost personal net worth. Screw the ones that got foreclosed on, they bit off more than they could chew. It’s the other 85% of homeowners who are the true meat behind American economic stability and they have lost. Each is now hunkered down to rebuild their losses and as a result are spending less. And that, boys and girls, is the main impetus behind slow growth.
Sorry Katherine you are wrong.
The middle east put us here.
When we voted to go to war against terrorism WE voted for tax hikes.
Its basic math.
Sure lets cut spending so schools have nothing left to educate our future generation with. Lets cut spending so that our bridges fall down… like they already are. The only place we have left to cut is the pentagons budget and our nation building agenda. Sorry thats all there is left to cut.
Brain washed.
FAA,,,,,,,LMAO…How about 1&2?…….PS-We have fewer ships, fewer planes, with most planes older than the crews that fly them,,,,,,,but thats right,,,cut defence ,,,,,,,,
We’re on the verge of our economy stalling, our debt is nearing 100% GDP, our corporate tax rates are already the highest in the world – is that about right?
How exactly is raising taxes supposed to do anything but make things worse?
@ Patriotic Logic
Pentagons budget was $900 billion last year, this figure does not include the costs of our nation building in the middle east. Our deficit was 1.7 trillion.
Fannie and Freddie cost a mere pittance as compared to the 10 years we have spent over in oil land.
ZIP, I don’t believe we can get out of this mess just by cutting spending. The debt deal tackled a TINY percentage of the whole problem. Keynesian economics worked during the Depression and we need to try something drastic to put people back to work. Corporations are sitting on huge profits – they’re doing great right now – but they’re more concerned with conserving cash than spending money on new workers. The companies are cutting benefits, pay, instead of hiring new people. We can’t just sit around and wait for something to happen. The corporations won’t start spending money just because we want/need them to.
Alphonse, despite the fact that the US has a high corporate tax rate, it’s raising less taxes than ever. Why? Amongst other things, loopholes. Trust me, not one large corporation is paying the tax rate they’re supposed to be paying.
Raise taxes on all demacratic politicians the KENNEDYS,GORES, just to name a few
The Democrats have heaped upon the us the biggest spending spree in history, and the result has been almost no GDP growth, abnormal unemployment exceeding 9.2% (despite 117,000 new jobs in July), decreased consumer and aggrigate spending, creeping inflation, debt up to our eyeballs and now a national credit rating downgrade. Obama has ZERO experience and it shows. We all pay for the Democrat’s incompetence. Taxes are always the answer for liberals. Then they continue to throw that money away to their constituents so long as they get their votes. Then they want more money to pay for some other lame-brain socialist pile of crap. When does this end? It’s never enough for these fools. Tax raises are not needed, spending CUTS are needed. Borrowing fiat currency at this level is insane and no competent economist would recommend that unless they’re a bought hack.
@Rob
Again, nice try. The defense budget is X without war and is X+ during wars. $900B is a bullshit number, you have to take the difference between “at war” vs. “at peace” costs. The MSM never goes there and that is apparently where you base your argument. Do more research.
FAA,,,and all other alike-History tells us that when you LOWER tax rates, you INCREASE revenues by having MORE people WORKING, contributing rather than waiting on a gov check,,,kinda works like Walmart,,, they run a small profit margin,,,going on volume, and that seems to be working well,,,,you want to be like the mom and pop store,,, low sales volume and high gross,,,IT DOES NOT WORK,,,hope that helps you “See the Light”,,,1&2?
PL – Bush couldn’t get oversight of FM and FM because the Republican House blocked him. His own party! The Dems took over the House a few years later and the legislation was passed then. But we’re talking small stuff compared to the defense budget. We have presence in about 130 countries around the world. How much longer do you think we can sustain that?
FAA says: August 6, 2011 at 12:12 am – The companies are cutting benefits, pay, instead of hiring new people. We can’t just sit around and wait for something to happen. The corporations won’t start spending money just because we want/need them to.
So confiscating more money from corporations (a.k.a. the “rich”) will do what exactly? Make them hire? Improve the economy somehow? We’ve all seen how well your vaunted Keynesian “stimulus” has worked in putting people back to work. But I’m sure the next trillion will make the difference. Or is it the trillion(s) after that?
If corporations are seeking tax shelters, it’s because taxes are too high and regulations are strangling them. Most likely they’re operating on the margins. They’ll then move overseas and how much taxes will be collected then? None. Art Laffer was right, revenues from taxation plummet when they exceed a reasonable amount. Obama wants to increase taxes to pay for his increased gov’t. It’s much cheaper to cut those programs and have people keep the money here in the states where it’ll remain in circulation here. People are scared to invest here and would rather move their money overseas, I don’t blame them.
FAA, if we want to pay for our social programs and our defense, the bottom line is that we need to spur economic growth. By all means, close the tax loopholes – for interests favored by both the left and the right – but we can’t just demonize big business and expect them to cooperate out of the goodness of their heart at the same time. Business needs incentive – financial incentive. To expect anything less is foolish. To levy even more taxes on those who can simply wait out a dismal economy until a Republican is elected president in 2012 is reckless.
Economan, problems don’t grow overnight. Our govt policies including deregulation (under Reagan, Bush 1, Clinton, Bush 2, now Obama), also defense spending, something that was seriously stepped up during Reagan’s era, plus many other factors contributed to this mess. But I have to be honest, Bush 2 wins the prize when it comes to responsibility for the economic crisis we’re in. Where Obama is at fault is for continuing many of the Bush policies that helped us get into trouble. The deficit is largely Bush’s fault.
Alphonse, no one’s demonizing big business, but you have to admit that if they feel like they can get out of doing something that will cost them money, they will do it. It’s simply a fact – business is business. We have to protect people’s rights and give them some powers too.
FAA-Your HOPELESS,,,,,,and must be part of the 50% that pay NO taxes! Ironic how when your arguements are defeated, and lame at best, how you revert back to “It’s Bush’s fault”,,,,,
@ZIP
FAA and Rob are tag teaming us and have no real facts to back them up.
Here’s one…I (and others) own a manufacturing business. It is a small company with 48 employees and about $20M in revenue. Our lawers and accountants (necessary due to sorry fuckers who mean us no good) tell us to not exceed 50 employees as then we fall into a federal requirement to report back financials to the government over and beyond what we already do. It’s confusing to me personally as my responsibility is to keep a steady flow of work to the existing 48 workers. The employees all get good wages (non-union)and company paid insurance. We need to expand, but (so I’m informed) if we can’t seriously leap forward with gross sales, then the additional regulations would require so much additional paperwork that we would have to hire additional office help just to fulfill inane fed regs. This would cause our bottom line to suffer.
So…mysteries of regulations, and mysteries of healthcare requirements PREVENT our company from expanding. We could put an additional 40 to work but NOOOO, the fucks in Washington have seen fit to make that aspect unprofitable.
And they want us to pay more taxes…..yeah right!
Miles – No, I’m actually a successful businessperson. And to go back on something you were saying before, I don’t advocate on running this country like Walmart. Walmart keeps costs down my treating its workers atrociously and I believe that the American people deserve better than that.
I hate to say I told you so, well not really, but I called this. Congress proved that the government is dysfunctional and are willing to destroy the US economy just for their partisan idealogy. I wouldn’t lend us money either after a stunt like that.
POLL: Who is more to blame for the US credit downgrade, congress or Obama?
Vote: http://www.wepolls.com/p/1716663
FAA says: August 6, 2011 at 12:30 am – The deficit is largely Bush’s fault.
BUT, BUT, BOOOOOOSH!!!! Ding, ding, ding. We have a winner, folks!
PL – you have just proven that businesses tend to do whatever it takes to maximize profit at the expense of its workforce. It’s a sad fact. I say treat your workers well, they will reward you with hard work and loyalty. Yeah, the paperwork sucks, I agree on that, but what can you do. That’s why you hire lawyers and accountants.
big-pete – I have no idea what you’re talking about. Make a comment when you have something intelligent to say.
@FAA
You are so full of shit! The rich pay more than 86% of ALL taxes paid in this country. Who do you think has been feeding you all this time….and housing you and paying for just about anything else your tiny liberal heart desires.
And our corporate tax rates are higher than 90% of all other Western Countries.
Additionally, the Standard and Poors report DOES NOT say “It puts the blame on both parties, as it should, for not raising the debt ceiling sooner and for the political sideshow that went on. However, the report specifically singles out the Republicans for their inflexibility and failure to consider a balanced approach to the budget deal (yes, raising taxes!).”
Why do you hav to lie? Oh, wait, I forgot, you’re a Leftist. It’s in your genes.
What the report does say is this:
“We view the act’s measures as a step toward fiscal consolidation.
However, this is within the framework of a legislative mechanism that leaves open the details of what is finally agreed to until the end of 2011, and Congress and the Administration could modify any agreement in the future. Even assuming that at least $2.1 trillion of the spending reductions the act envisages are implemented, we maintain our view that the U.S. net general government debt burden (all levels of government combined, excluding liquid financial assets) will likely continue to grow.”
“Compared with previous projections, our revised base case scenario now
assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act. Key macroeconomic assumptions in the base case scenario include trend real GDP growth of 3% and consumer price inflation near 2% annually over the decade.”
“Our revised upside scenario–which, other things being equal, we view as
consistent with the outlook on the ‘AA+’ long-term rating being revised to stable–retains these same macroeconomic assumptions. In addition, it
incorporates $950 billion of new revenues on the assumption that the 2001 and 2003 tax cuts for high earners lapse from 2013 onwards, as the Administration is advocating. In this scenario, we project that the net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.”
________________________
So even with the resumption of higher tax rates, the rating agency considers an increasing debt still on the horizon. And it says nothing about holding both parties responsible! The report focuses on DEBT which is SPENDING.
_________________________
Of even greater interest is the following:
“Our revised downside scenario–which, other things being equal, we view
as being consistent with a possible further downgrade to a ‘AA’ long-term rating–features less-favorable macroeconomic assumptions, as outlined below and also assumes that the second round of spending cuts (at least $1.2 trillion) that the act calls for does not occur. ”
_______________________________
In other words the rating agency doesn’t believe that Obama and the Dems will hold up their end of the bargain.
________________________________
And a VERY interesting notation:
“Our revised scenarios also take into account the significant negative
revisions to historical GDP data that the Bureau of Economic Analysis
announced on July 29. From our perspective, the effect of these revisions underscores two related points when evaluating the likely debt trajectory of the U.S. government. First, the revisions show that the recent recession was deeper than previously assumed, so the GDP this year is lower than previously thought in both nominal and real terms. Consequently, the debt burden is slightly higher. Second, the revised data highlight the sub-par path of the current economic recovery when compared with rebounds following previous post-war recessions. We believe the sluggish pace of the current economic recovery could be consistent with the experiences of countries that have had
financial crises in which the slow process of debt deleveraging in the private sector leads to a persistent drag on demand. As a result, our downside case scenario assumes relatively modest real trend GDP growth of 2.5% and inflation of near 1.5% annually going forward.”
_____________________________
Was anyone aware of this revised Gross Domestic Product data? Do anyone see any newsreports regarding this? It appears the numbers regarding GDP were far worse than the Government had been previously reporting.
_____________________________
And now the money shot:
“When comparing the U.S. to sovereigns with ‘AAA’ long-term ratings that
we view as relevant peers–Canada, France, Germany, and the U.K.–we also observe, based on our base case scenarios for each, that the trajectory of the U.S.’s net public debt is diverging from the others. Including the U.S., we estimate that these five sovereigns will have net general government debt to GDP ratios this year ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at 74%. By 2015, we project that their net public debt to GDP ratios will range between 30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at 79%. However, in contrast with the U.S., we project that the net public debt burdens of these other sovereigns will begin to
decline, either before or by 2015.”
__________________________
If we do not cut our spending (which includes Obamacare, note the jump in debt regarding 2014 in previous paragraphs) methodically and severely, we’re looking at the inevitable decline of the U.S.
Alphonse – you mentioned giving businesses tax breaks to spur growth. There are certain things I would definitely support, like making it cheaper to hire new workers, helping businesses with healthcare costs, but certain things I believe are wasteful and not the government’s to pay for.
@FAA
You are sadly misinformed. We DO NOT gain additional profits at the expense of the workforce. They are well paid and insured. But to EXPAND and hire more workers and perhaps build an additional manufacturing plant, is hamstringed by sorry fucks like you. I could be happy and retire on what monies I have today, but it would please me to expand the company because I would contribute more to the economy and sustain more workers and families and add to the tax base of my community.
Your knowledge of business is pathetic.
Katherine – why are you so angry and hateful? I’m simply trying to have a dialogue with you. Partisan politics have gotten this country nowhere and I don’t understand why it’s so difficult for you to have a civil conversation with me. What was I thinking – silly me! By the way, I pay my own way through life. I’m very well off and the system is rigged to favor people like me. It shouldn’t be.
Good night, folks. It’s been illuminating.
FAA says: August 6, 2011 at 12:48 am – I’m very well off and the system is rigged to favor people like me. It shouldn’t be.
OK, I’ll bite. List out how you make out like a bandit under the “system”. Please be specific.
@FAA
Good night but do hit the research. You premises are lacking.
Harry Reid would use the sun rising in the morning as a reason to call for higher taxes.
Boy, the trolls have been active tonight. However, I noticed the total lack of them on the thread about Rick Perry and the upgrade of Texas’ bond rating. Apparently, they just ignore the truth when it stands in the way of spinning more lies about the debt and the lack of effective taxes to support out of control spending. Tonight’s talking points are low tax rates and the Tea Party is responsible for the big shit sandwich we, the taxpayers, are going to have to take a bite of. It just couldn’t be the field hand in the White House, nor the past two years of Democratic controlled Congress responsible for this mess. Nope – the Democrats are without sin; to hear them speak.
I expect taxes to raise, inflation to go through the roof, prices to rise, and unemployment to rise for the next 2-3 years. It is going to take a lot of time before we start slowing down this slide.
Fucking Asshole Anonymous…you say stupid shit…
“….despite the fact that the US has a high corporate tax rate, it’s raising less taxes than ever. Why?…”
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Like you don’t know… stupid… because business is moving out…
I see the media matters drones showed up! And with their talking points. A right winger (terrorist) can not leave the computer without missing all the fun!
@ Zip,
Re: Read the report…. Libs can read? who knew? But don’t worry, an independent thought process will not occur as a result of the “reading.”
Rob says:
August 5, 2011 at 11:27 pm
People are stupid to believe that we can tackle the debt without tax hikes.
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No… stupid is thinking taxes will solve a spending problem…jackass…
and I missed the fun…damn…
Fucking Asshole Anonymous says more stupid shit…
“…You need to read the report before you comment….”
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You need to take Obama’s cock… out of your mouth… before you speak…
the report is as fraudulent as you are…
Fucking Asshole Anonymous is a treasure trove of stupid…
“…By the way, I pay my own way through life…”
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yeah…by sucking cock at DNC functions…
Fucking Asshole Anonymous says
“…the system is rigged to favor people like me. It shouldn’t be…”
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Than by all means…do humanity a favor… throw yourself in front of a train
Fucking Asshole Anonyomous says…
“No, I’m actually a successful businessperson.”
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Working out of your mommy’s basement…. isn’t running a business…
Fucking Asshole Anonymous says…
“…Keynesian economics worked during the Depression…”
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ummm…jackass…no it didn’t
Let’s end it this way:
Hussein Obama spent more $ in his 2.5+ years than ALL Presidents since George Washington!
Yea…it’s Bush’ fault alright!
Hey FAA…
1– Where did you get your facts that R’s blocked Freddie/Fannie reforms? Go watch the you tube videos. Maybe you’ll learn something.
2– What year did the R’s take back the house? How long have the D’s held both houses?
IDIOT!
Here’s part of a reply email from my delusional TN representative on the debt deal:
This bill prevents our country from possibly entering into a job-crushing national default. Had this happened, it would have detrimentally affected the lives of Americans all across the country. Default would cause ratings agencies to reduce the U.S. credit rating, and credit availability would contract significantly in the short run as banks are unable to issue credit. Once individuals are able to borrow again, credit costs such as mortgages, auto loans, school loans, credit card loans, etc., would increase immediately and would likely be permanently higher than if no default had occurred. The message is clear: Washington has a spending problem, not a revenue problem. We have been given an opportunity to reexamine fiscal and budgetary policy, and impose real changes in the way our government spends taxpayer money.
Color me unimpressed with her ridonkulous suppositions and claims. Particularly the part about not raising taxes and avoiding credit downgrading. I got this email today. Talk about bad timing on her part!
Sorry, I didn’t post the part where she’s all chuffed about thwarting the raising of taxes in the new debt deal. Guess she hasn’t been reading WZ about how the wonder congress will no doubt shove new taxes through.
Reid is as dumb as a box of rocks. You cannot get out of this mess without GROWING the pie. Raising taxes will shrink the pie. FAIL…… 2012 cannot get here fast enough.
PS. FAA, go fuck yourself.
Not one single idea put forth by this administration has worked.
Last week, RINOs enabled Obama to push us into this mess.
NO new taxes!
NO new spending!
NO new debt ceiling!
NO new government regulations!
IMMEDIATE cuts to every single government program and agency!
The TEA Party warned us against all this.
Obama, Geithner, Boehner – RESIGN NOW!
TEA!
It has been proven, time and again, that the best way to raise REVENUES is to LOWER taxes, especially on the wealth creators. The reason we are in this mess is because we have confused revenue raising with WEALTH CREATION. The way we create wealth is by investment in productive industry. The way we foster a climate of productivity is by disempowering the environmental extremists who are now and have been calling the shots which have lead to de-constructing the industrial capacity, and hence the wealth-creative capacity of the USA.
Well I should have read the nest story because I posed to the previous story about just this thing. The Communists are so predictable !
OK, all you Tea Party loyalists, It’s time to make the final push towards next elections. Time to take out all the ruling class and the elitists. Time to take our country back. My only wish is that when we do get it back that we remove PERMANENTLY those individuals who threaten our Republic. If you don’t remove the threat it will come back again. That is why we killed the communists in Vietnam. Obviously, we just didn’t kill enough because of the democrats!
StandYourGround says: August 6, 2011 at 7:12 am – My only wish is that when we do get it back that we remove PERMANENTLY those individuals who threaten our Republic.
And who get’s to decide who “threatens” the Republic? Some kangaroo court? Some witch hunt tribunal? You can’t do this without becoming what you claim to despise.
So we must battle these communists on the field of ideas. Expose them as communists. Mock and ridicule their failed ideas and policies. NEVER concede a point of reason or fact to them. Show them for the fools and tyrants they are. Relegate them to standing on street corners shouting at passersby.
That’s no surprise– he calls for raising taxes in his damned sleep…..mumbles it to his imaginary friend when he puts on the “I love ME” jacket and lounges around in the “safe” room……
“That’s no surprise”
Well no, not unless you’re a moron.
You just did the cutting spending thing, managed to come up with less than half what was required to keep your AAA rating after you were told this is what it would cost you.
That leaves donations from the tooth fairy and raising taxes as the 2 alternatives left.
Whether Harry Reid or Stalin is the the speaker for the Dems doesn’t change the math you idiot. I guess this is why people talk about “business experience” for a Republican candidate as being so important, because who the hell could figure out BOTH sides of the revenue vs expenses equation for themselves.
“OK, all you Tea Party loyalists, It’s time to make the final push towards next elections. ”
Yeah, maybe start wearing explosive vests to your rallies or punching babies in the face on national TV. See if you can’t push that 80%+ disapproval rating for congress up a notch, if that’s even possible.
http://www.youtube.com/watch?v=661pi6K-8WQ
EAT THE RICH!
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I read this comment thread.. thought of this vid..
Danz says: August 6, 2011 at 8:59 am – You just did the cutting spending thing, managed to come up with less than half what was required to keep your AAA rating after you were told this is what it would cost you. That leaves donations from the tooth fairy and raising taxes as the 2 alternatives left.
A few billion in cuts with a promise that future congresses will cut a trillion over the next 10 years. So, let’s see, increase the debt by a guaranteed 2.5+/- trillion in the next 18 months then cut a trillion (maybe) over the next 10 years. I guess you are right. We’ve cut to the bone here. We have no more options. Now, where can we find this tooth fairy character?
FAA — Sure, let’s just use legalized thievery and up our reliance on those evil rich people. Everyone knows it’s poor people who provide jobs and keep buying stuff that keeps the economy humming.