Re: Which Countries today have Triple A Credit Rating?
Downgrade shows DeMint was right
by
David Freddoso
Follow on Twitter:
@freddoso
He was right. (AP photo)
Throughout the debate over the debt ceiling, the media did all of us a great disservice. They reported as though the Republicans were threatening to ruin America's credit unless they got their way.
Closer to the truth: If only conservatives like Sen. Jim DeMint, R-S.C., had gotten their way -- i.e., huge spending cuts --
perhaps we wouldn't have just been downgraded by S&P. DeMint predicted ahead of time that none of the debt deals on the table except for "Cut, Cap and Balance"
would prevent a downgrade. He has been vindicated.
The bond-rating houses kept saying all along that they weren't worried about the debt ceiling not being increased. Rather, they were worried about the long-term prospects of the U.S. government paying back $15-plus trillion, which is where our national debt (both publicly held and obligated to trust funds) will be shortly.
Because last weekend's deal didn't cut spending deeply enough, S&P has just downgraded us. We'll see just how disastrous this becomes -- some are arguing it's
not such a big deal -- but consider this the market's revenge for TARP and the stimulus package. You run up the debt, Mr. President, you lose your good credit.