The View From 1776
Monday, August 08, 2011
Nonsense On Stilts
Blaming the Treasury debt downgrade on opposition by Republicans and Tea Partiers to tax increases in the debt-ceiling debate is comparable to blaming a fire on a neighbor who reports the blaze to the fire department.
The only budget with specific numbers submitted by President Obama called for no real debt reductions; just another increase in deficit spending. Republicans and Tea Partiers merely spotlighted the fact (obvious to everyone in the world outside liberal-progressive ranks) that the United States cannot continue expanding the national debt indefinitely.
Standard & Poors downgraded Treasury debt because the budget cuts in the deal were too small, too far in the future, and too vulnerable to later repudiation. S&P also cited uncertainties arising from the fact that debt-ceiling negotiations will have to be re-opened next year.
In its July 14 press release, Standard & Poor’s warned the Obama administration: “If Congress and the Administration reach an agreement of about $4 trillion, and if we