US May Lose Its ‘AAA’ Rating

Debt does matter!

CNBC-The United States may be on course to lose its ‘AAA’ rating due to the large amount of debt it has accumulated, according to Martin Hennecke, senior manager of private clients at Tyche.

“The U.S. might really have to look at a default on the bankruptcy reorganization of the present financial system” and the bankruptcy of the government is not out of the realm of possibility, Hennecke said.

“In the United States there is already a funding crisis, and they will have to sell a lot more bonds next year to fund the bailout packages that have already been signed off,” Hennecke told CNBC.

In order to solve or stem the economic slowdown, Hennecke suggested the US would have to radically reduce spending across all sectors and recall all its troops from around the world.

As for a stimulus package, there is not much of an industry left to stimulate back into life, Hennecke said.

read more or watch

http://controlcongress.com/economics/us-may-lose-its-aaa-rating

Obama beating McCain was a foregone conclusion, it was his win over Hillary that should put his political consultants into the Hall of Fame. This was supposed to be Hillary’s coronation. Obama got his traction in the beginning from the anti-war crown, constantly hammering Hillary on her original war vote. Obama had the luxury of not being a Senator when that vote occurred, much like Jim Martin has on the bailout bill. It’s hard to realize that four years ago from today that Obama was a State Senator (who wasn’t even a member of the leadership), but hey it was Palin who is the inexperienced one.

Anyway, removing that flag pin was a calculated decision to appeal even more to the anti-war crowd – they are the ones who gave him his traction. To the extent Republicans starting complaining about the pin, well they were mere peripheral players falling into an unanticipated trap. Nothing better, during a Democrat primary filled with very angry anti-war people, than having a bunch of Republicans complain about Obama removing his flag pin.

That’ s not going to happen in Washington during the next 4 years. Obviously I am not an Obama supporter.

What is going to happen is that Obama will push through every piece of legislature his socialist heart desires because there will be no numbers in opposition that can stop him. There’s no smoke screen about that! The will be no bi-partisanship except if you agree w/ him.

With the majority he has – it won’t make any difference what Paul Broun or anyone else has to say about him. However, they do need to say it.

He has been transparent about what kind of change he wants to bring.
Personally, I don’t want our country to be like the Europeans.

You & I are looking at this problem from difference perspectives. I do like your handle though!

Bringing this thread back full circle, that’s the real problem here. We as an electorate have been dumbed down so much with partisanship and valueless symbols (He’s not wearing a flag pin!) and language (He’s a Marxist!) that we no longer demand common sense solutions to our real problems.

The campaign is over. It’s time for our leaders to govern. We need to demand better from our leaders, and to do so, we shouldn’t tolerate partisan smoke screens.

The $700 billion TARP, if channeled into bank equity can be loaned out 10:1 to create $7 TRILLION in new credit.

To paraphrase Ron Paul; curing the problem of too much debt and spending with MORE debt and spending fixes nothing.

It only makes the debt implosion bigger.

Keynesian spending, borrowing and fiscal stimulous were the correct tools as long as the USA was a creditor nation as it was in the Great Depression. Creating UNLIMITED $trillions in debt on top of $62 trillion in debt and liabilities is like curing a fever by throwing the patient in a sauna.

The Dems and GOP are united in their race to destroy the middle class with INFLATION AND TAXATION, the prescription of V.I. Lenin.

All of this partisan crap is just a diversion play.

Cut spending? HA! When the overwhelming majority flood tha email, fax, and phone lines DEMANDING no bailouts, they were ignored, because big spenders like Saxby are awarded reelection.

However, it makes too much sense to work in Washington!

You’re right. The thing is, Broun is one of the few Congressmen that we can count on to be true to fiscal conservatism. He agrees spending needs to be cut. He probably moreso than any other Congressman.

Glad he’s calling a spade, a spade.

In fact, he’s had more opposition from Reps because the state & national leaders don’t want him in Washington. However, the folks in my 10th district want him there.

So, the way that we pay off our bills is to give the government more money through taxes?

That has never & will never work. That’s the same logic that has been used with the rccent gov’t buyouts. “The tax payer will benefit if the investement profits”. No tax payer will benefit-the gov’t willl just spend the profit. If the investmnt tanks then then taxpayer gets stuck again.

After working for local govt’s for over 27 yrs., I have observed that spending always increases. (for various reasons) If local & state gov’t cannot decrease their spending why do you expect that the federal gov’t will?

Taxes will always exist. If gov’t spending will ever be restrained-its revenue must be restrained. Then gov’t leaders will have to make choices just like most of us do every month about revenue & expenses.

Additional taxes just raises the credit limit on the card for gov’t. The debt is still there.

I’d like to add a substantive policy position that I believe was talked about, though I’m not sure if it was ever implemented, in the early years of the Clinton Administration.

We know tax increases are coming. We need to insist that there be $2 of spending cuts for every $1 of tax increases.

Great point like No Child Left Behind! Great name bad program!

Seems like every few years, once the dictionaries update the new definitions, and folks start to realize they don’t like really like the programs associated with the definitions, instead of changing the policy you just change the word.

But he does not and his Republican cohorts just can NOT change their evil ways. Come next cycle, the ‘whiners’ will be swept out, and progressive candidates will carry this state forward into the 20th Century, and hopefully beyond.

Yeah I used the “H” word.

Honestly, I don’t think we should be talking tax cuts or increases for ANYONE until we’ve paid our bills. We have to reduce spending, which means cutting into entitlement programs. No one could say this on the campaign trail because they’d get excoriated: Could you imagine what the AARP would do a candidate who said “we need to cut back social security” — Oy.

But that’s the truth. Our tax code is not perfect, it could use some changes, but the truth is, no tax program is going to balance the budget. Hard choices are going to do that.