US AAA credit rating downgraded

[Razgovory]

Well fuck.

[Martinus]

"S&P said it was because the deficit reduction plan passed by Congress on Tuesday did not go far enough."

Does that mean that the Tea Party-aligned members of Congress should have kept pushing for more cutbacks and/or the BBA?

No, it means you need to raise taxes from the lowest level in the last 50 years.

[Martinus]

This is a summary paragraph from the full S&P report if anyone's interested:

"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. We also believe that the fiscal
consolidation plan that Congress and the Administration agreed to this week
falls short of the amount that we believe is necessary to stabilize the
general government debt burden by the middle of the decade."

So essentially they are saying that the Congress is a bunch of retarded kids.

[Martinus]

http://www.businessinsider.com/the-last-aaa-countries-2011-8#safe-aaa-rating-1

It's funny how Sweden, Norway, Denmark and Germany (i.e. according to the libertarian/tea party idiots the socialist dystopias that are allegedly on the brink of financial collapse) all have perfect AAA ratings. Meanwhile, electing the tea party idiots to the congress caused the country to lose its AAA status for the first time in a long while. Good job, America. 

[Admiral Yi]

It's funny how Sweden, Norway, Denmark and Germany (i.e. according to the libertarian/tea party idiots the socialist dystopias that are allegedly on the brink of financial collapse) all have perfect AAA ratings. Meanwhile, electing the tea party idiots to the congress caused the country to lose its AAA status for the first time in a long while. Good job, America. 

There is a flaw in the analysis.

[Martinus]

It's funny how Sweden, Norway, Denmark and Germany (i.e. according to the libertarian/tea party idiots the socialist dystopias that are allegedly on the brink of financial collapse) all have perfect AAA ratings. Meanwhile, electing the tea party idiots to the congress caused the country to lose its AAA status for the first time in a long while. Good job, America. 

There is a flaw in the analysis.

There isn't. Deficit aside, S&P quotes the blackmail/paralysis by the tea party congress as a direct cause of the downgrade. The fact that the world's biggest economy can wait until the last hour to pass a bill preventing it from defaulting says something, irrespective of whether it is in deep financial shit or not. You have given the reins to nutcases, and that's the result.

[Jaron]

BELOVED!!!!

[Admiral Yi]

There isn't. Deficit aside, S&P quotes the blackmail/paralysis by the tea party congress as a direct cause of the downgrade. The fact that the world's biggest economy can wait until the last hour to pass a bill preventing it from defaulting says something, irrespective of whether it is in deep financial shit or not. You have given the reins to nutcases, and that's the result.

Why should we put the deficit aside?

[citizen k]

Why should we put the deficit aside?

So he can get his digs in.

[Martinus]

BELOVED!!!!

[Razgovory]

Yi, do you think the Standard and Poor would have reduced the US credit rating today had their not been a big debt ceiling fight that lasted months and was only resolved at the 11th hour?

[Princesca]

It frustrates me that, because the value of our currency is more or less ephemeral, that we even have to have these discussions. If our currency was based on something of finite value, the writing on the wall would be clear as day - we would know exactly how we had to proceed.

Rather than raise taxes, I would prefer to see, first, how we look after major military scalebacks overseas and real entitlement reform that's beyond merely shuffling money around and other carnival sideshow tactics.

[Princesca]

This is a summary paragraph from the full S&P report if anyone's interested:

"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. We also believe that the fiscal
consolidation plan that Congress and the Administration agreed to this week
falls short of the amount that we believe is necessary to stabilize the
general government debt burden by the middle of the decade."

So essentially they are saying that the Congress is a bunch of retarded kids.

Marty and I agree on something. 

[Razgovory]

It frustrates me that, because the value of our currency is more or less ephemeral, that we even have to have these discussions. If our currency was based on something of finite value, the writing on the wall would be clear as day - we would know exactly how we had to proceed.

Rather than raise taxes, I would prefer to see, first, how we look after major military scalebacks overseas and real entitlement reform that's beyond merely shuffling money around and other carnival sideshow tactics.

Something of finite value?  What like pork bellies?

[Martinus]

The gold standard talk is an economics equivalent of a canary in the coal mine of crazy. Whenever you are dealing with a nutcase ignoramus, it is bound to eventually come up.