As everyone knows by know S&P downgraded the U.S. debt rating after the debt ceiling was raised.
I then heard some pundits on the radio saying this was the fault of the Tea Party and Republicans. If they had raised the debt ceiling earlier instead of engaging in brinkmanship it would have happened. The increased interest rates the Federal government will now have to pay will cost U.S. taxpayers hundreds of dollars each year and taxpayers can “thank” the Tea Party for that.
Former White House adviser David Axelrod on Sunday pinned responsibility for the recent U.S. economic downgrade on the Tea Party movement, arguing that the group’s political “brinksmanship” during debt ceiling negotiations “brought us to the brink of a default” — and that, subsequently, “this is essentially a Tea Party downgrade.”
WHAT?!!! Where are their layers of editorial oversight?
Did anyone bother to actually read what S&P said was their reason for the downgrade? It was right there in their press release (emphasis added):
We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process. We also believe that the fiscal consolidation plan that Congress and the Administration agreed to this week falls short of the amount that we believe is necessary to stabilize the general government debt burden by the middle of the decade.
Our lowering of the rating was prompted by our view on the rising public debt burden and our perception of greater policymaking uncertainty, consistent with our criteria (see “Sovereign Government Rating Methodology and Assumptions,” June 30, 2011, especially Paragraphs 36-41). Nevertheless, we view the U.S. federal government’s other economic, external, and monetary credit attributes, which form the basis for the sovereign rating, as broadly unchanged.
The rating was lowered because progress containing the growth in public spending is less likely that previous assumed. Who was it was trying to contain growth in public spending? Unless the media and the liberal politicians are living in a different world than I am that was the Tea Party. The Tea Party was not sufficiently effective in reducing spending so S&P downgraded the debt rating.
Thomas Sowell has it right. There is no point talking to them. These people are suffering from Peterson Syndrome. They do not have the mental tools to determine truth from falsity and with the pedal to the metal they are driving the U.S. into a financial abyss.
Invest in food, gold, silver, and copper jacketed lead.
Update: The Washington Times, although somewhat more obliquely, says the same thing.
Update2: WizardPc has a humorous take on it.