USA looses top credit rating for first time in history.
Standard & Poor’s announced Friday night that it has downgraded the U.S. credit rating for the first time in American history. S&P lowered the nation’s rating to one notch below AAA. The credit rating company said the bipartisan agreement reached this week to find at least $2.1 trillion in budget savings “fell short” of what was necessary to get the gigantic yearly budget deficits under control. The agency had stated, on July 14, that only a budget package reducing anticipated deficits by $4 trillion over the next 10 years would likely be sufficient to avoid a downgrade. S&P predicted that political leaders would not be likely to achieve more savings in the future.
While some have tried to blame the Republicans for the debacle, the fact is if Obama and the democrats had agreed with Republican proposals to make concrete reductions in federal spending, this credit rating reduction would NOT have happened. During the rancor over raising the debt ceiling, Republicans made all the proposals to cut spending. Obama offered nothing and then used cuts proposed by the Republicans to launch political attacks against them. To Obama, making political points with voters is more important then saving the economy.
Obama and the democrats are 100% to blame for our credit rating reduction because of their obstinate refusal to stop runaway spending.