White House already blamed the Tea Party for the downgrade because they didn’t cave quick enough.
Look at the massive increases in debt under Obama. You can see S&P’s point.
Http://confoundedinterest.wordpress.com
Debt and spending totally unsustainable.
Look at Medicaid as a % of GDP!!!!!!
Barry and his commie ‘RATS need to listen to the Tea Party! KNOCK OFF THE SPENDING MORONS!
Here is the CBO forecast of debt to GDP. Treasury uses the CBO baseline. According to the CBO extended baseline, we will be at 75% to infinity and beyond! So while high, the debt to GDP ratio is stable. According to the CBO, that is.But the CBO also publishes an alternative scenario which is shown in chart as the dashed line. The S&P forecasts are closer to the alternative scenario than the baseline projection.
It’s not just the debt that is the problem. After WWII we have encouraged our manufacturing sector to move overseas because of high taxes and excessive regulation.
We discourage wealth creation in this country and as a result we have to borrow the money that would have been taxed if manufacturing had stayed here.
Then throw in the devaluation of the dollar.
Unless we reform the tax system,our leviathan of bureaucracies and get away from using the Keynesian economic model for our country we can just forget about improving the situation.
What caused the United States to lose its AAA rating for the first time in 94 years, a rating that withstood two world wars, the Great Depression and (most of) the Great Recession, and a costly military buildup that bankrupted and demolished our Cold War foe, the Soviet Union, without a direct shot fired?