COMMENT: Well, folks, they’ve done it. The GOP’s Tea Party fascists (with a generous assist from an apparently clueless and definitely gutless Barack Obama) have succeeded in causing S & P to downgrade the U.S.‘s credit rating from AAA–the first time in history that this has been done.
In FTR #412, we outlined the strategy of the GOP–run up massive government debt in order to force the rolling back of the New Deal-style social legislation that they despise. The point man for the “no new taxes” mantra is lobbyist extraordinaire Grover Norquist.
Some things to consider in this context:
- Had the criminally negligent U.S. media (and the apparently clueless, and definitely gutless, American political establishment) nailed tax-cut maniac Grover Norquist and The Dark Lord Karl Rove on their overt ties to Al Qaeda, the Muslim Brotherhood, Hamas and Palestinian Islamic Jihad, those front-running fascist bastards would be in shackles down at Guantanamo instead of guiding the U.S. into catastrophe. Norquist himself is married to a Palestinian Muslim woman and may well have converted to Islam himself.
- Had the criminally negligent U.S. media (and the apparently clueless, and definitely gutless, American political establishment) taken stock of the profound Nazi influence on, and participation in, the GOP, the Republicans would be seen as the traitors and fascists that they are, and would not be able to cloak themselves in a red, white and blue mantle.
- One can but wonder how many of the Tea Party fascists are actual operatives for the Underground Reich and its economic component, the Bormann capital network. The events now unfolding will, if left unchecked, hand the mantle of world economic leadership to Germany. It is deeply tragic that people have failed to use the work of Paul Manning, a true hero if ever there was one.
Now comes the word that S & P’s action was largely driven by their belief that Obama (the black man with the white flag) and the Democrats will fail to block the extension of the Bush tax cuts.
EXCERPT: As threatened, the ratings agency Standard & Poors has downgraded the country’s AAA bond rating, despite acknowledging, according to multiple reports, that their initial calculations included a $2 trillion error projecting U.S.‘s debt-to-GDP ratio over time.
You can read the entire explanation below the fold. But the key is that the use of the debt limit as a legislative bargaining chip, combined with gridlock in Congress, led S&P to publicly conclude that the country will have a hard time restoring gravity to its debt trajectory.
However, while they parcel blame across Congress — implying Democrats are rigidly opposed to cutting entitlement spending — they hint that Republican intransigence to raising tax revenues is more troubling.
From the agency’s press release:
. . . . 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. . . .