Record Budget Deficits Are About to Cause the United States Credit Rating to Be Downgraded

On Monday April 18, 2011 Standard and Poor's announced that there is a strong possibility that the United States credit rating could be downgraded from its current excellent rating. Right now they are making the odds of a 1 in 3 chance that the drop in rating will occur. The excellent rating is shared by 17 other nations, but the U.S. is the only one of those nations that is "concerning" according to CBS News. Standard and Poor's still gives the U.S. a AAA credit rating, but is not only concerned about the record deficits and spending, but the possibility that Washington will not do enough to fix the problem. Peter Cardillo, chief market economist at Avalon Partners Inc. said "This is a wake-up call. The government is now going to have to do something to cut the budget. That is a long-term positive for the stock market, though it might not be in the near term." United States debt offerings were trading lower after the S&P made the announcement.

If the credit rating was lowered for the United States it would mean that the U.S. would have to pay more in order to borrow money like the 40 cents that we borrow of every dollar that we spend to keep pet projects and entitlements going. If it costs the United States more to borrow money this will also affect various financial markets. One reason is that U.S. bonds are considered among the "safest'' investments available. If the government is the benchmark for rates that people pay we could see rates for credit cards, car loans, student loans and mortgages go up. This is if anyone can get them as companies will probably tighten their lending even more than they did now despite the bank bailouts. Since business loans will also be affected there is a possibility of more unemployment and or business failures as well as fewer business start ups.

Now what I wonder is what is the root of all of this? What caused this to happen? As much as I don't like the politics of Barack Hussein Obama, I will say that this is not all his fault, but he has the biggest budget deficit in the history of this country. Ronald Regan did his share of spending, but he was fighting, and won, the cold war, the two President Bush's both had wars to deal with. Clinton did not have the backbone to stand up to people like Saddam Hussein, so there was actually a surplus during his watch. Few people want to admit that was largely due to conservative leadership in the House and Senate. Had Clinton had a Democrat House and Senate he would be pretty close to the same place that Obama is. Obama managed to pass a jobless stimulus that cost almost $700 billion. He also used every sleight of hand, arm twisting, and example of gangster politics this country has never seen to ram the Obamacare bill on the American people. America did not want it, still does not want it, and returned the House to the Republicans and slimmed the democrats majority in the Senate because if the out of control spending. Most of the money Obama is spending is political payback. He did not institute the auto bailout for the benefit of the country. It was to pay back the United Auto Workers Union for their support. If the companies went totally under more UAW workers would be out of work. It is worth noting that more UAW members have been laid off under Obama than George W. Bush. I hate to see anyone out of a job, but the way they mindlessly supported him because they were afraid to have to work like the rest of us that seems to be almost poetic justice.

Pretty soon congress will debate raising the amount of money that the country can borrow. I personally think they should not unless some key things are realized. One is the healthcare law needs to go. America does not want it and it is way too expensive. We also have to tackle entitlement reform. Now I am not saying take away grandma's social security. I am saying that states like California, Washington, and New Mexico need to quit allowing illegal immigrants to get welfare, WIC, food stamps and public housing. In many cases the illegal invaders get them because they have an anchor baby. We could cut down on that by requiring the person applying for the aid to prove they are a citizen. If not then deport them. There is a large amount of money we will save right there.

We can also show the world we are serious about our debt by stopping the pathetic liberal policy of intentionally not having benefits to help poor people move up in the world in order to control their votes. Democrats are the first ones to gripe whenever welfare reform is discussed. What is that? Because they know more of the people who are on welfare and public assistance vote democrat. I am sure Obama received over 80% of the inner city votes for people who contribute nothing to society but live off our social programs. In many cases you have the fourth generation being a poor single welfare mother that just things her private parts are a welfare generating machine. The liberals say take all you want and the people who actually work will pay for it, but they can't give our seniors a raise the last two years. That is pathetic and needs to change. Times are changing in these countries. I don't like the idea of having to wait two extra years to retire, but if that means the difference between social security being there or not, then I will wait the extra two years.

I would hope conservative Senators like Jim DeMint (R-SC) and Rand Paul ( R-KY) will filibuster any attempt to increase the debt ceiling until reducing the deficit and repealing the Obamacare bill are done deals. Obama might think he is king, but he is not, and many people who voted for him are having serious buyer's remorse. He asked during the election "how are you going to be four years from now". Sadly I think most people were better off before he was in office.

Thank you for reading

God Bless you and God Bless America.

I mentioned some of the problems and costs of illegal immigration here. There are many articles I have written if you want to check them out. They do much more harm than good if you look at things objectively. I also advise you to go to numbersusa.com and alipac.com as there is a wealth of information there about the costs of this illegal invasion to our country.

Sources and for further review.

CBS Evening News April 18, 2011

http://www.foxnews.com/politics/2011/04/18/sen-demint-threatens-filibuster-debt-ceiling-vote/

http://www.usnews.com/opinion/blogs/peter-roff/2011/04/18/tie-debt-ceiling-increase-to-spending-cuts