Posted on 04/19/2011 11:00:41 AM PDT by JohnRLott
If you think it's hard now to balance the budget, just wait until our credit rating gets trashed. Monday’s warning from the Standard & Poor’s rating agency -- that the U.S. government’s credit rating could be revised downward -- produced a firestorm in Washington. Republicans called it a "wake-up call," while the Obama administration's chief economist, Austan Goolsbee, lambasted Standard & Poor’s actions as purely "political."
Credit ratings aren’t just a matter of national pride. Less dependable, risky borrowers have to pay a higher interest rate to get people to buy their bonds. Right now the our government only has to pay 3.4% annual interest to borrow money for 10 years. But for countries who have had trouble paying their debts, interest rates are much higher. Portugal is forced to pay 9.1%, Ireland 9.8%, and Greece 14.6%.
But America's financial problems are catching up to what these other countries face all too quickly. . . .
(Excerpt) Read more at foxnews.com ...
If S&P was acting on a political motive, what would it have been? If Barry’s team puts through accusation they should define the motive behind it.
Can you imagine being named Austan Goolsbee? Where does Obama find these guys? He must have a Secret Find-me-the-Idiots Czar, because his administration is chock full of them.
S&P downgraded the Obama Presidency. No Problem, No politics.
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