Sunday, July 17, 2011

The US Credit Rating - Downgrade Coming

While Congress and the media focus on the politics of raising the National Debt Ceiling from the current $14.3 trillion to something much higher to allow Socialist President Obama to continue borrowing trillions of dollars to take care of his PEEP's, those that pay no income taxes at all, those on the dole, illegal aliens, public union employees and favored industries that contribute to his reelection campaign, what is being lost in the translation is that unless federal government spending is dramatically cut, the rating agencies have already said that they will downgrade the US credit rating from Triple AAA to something less.   So it is not just about meeting an August 2nd deadline date to raise the National Debt Ceiling; but in addition, we must put a credible plan on the table to end the deficit spending that has been happening for years. 

The federal government is currently borrowing 40 cents for every dollar that it spends.   This is unsustainable.  As interest rates go up and they will go up in future years, the interest on that debt will consume billions more in monthly expense.   As it is now, with low interest rates, the interest on the debt is about $20 billion a month.   That is $20 billion that cannot be spent on vital federal government functions, let alone funding more than 1,300 redundant and wasteful federal agencies, commissions and departments and all kinds of crazy programs.   If Obama is allowed to borrow trillions more and the Federal Reserve continues to print money devaluing the dollar,  we will see very high inflation and interest rates that will result interest on the debt that will go through the roof. 

Unless deficit spending ends, even if the National Debt Ceiling is raised and it will be raised, various rating agencies will downgrade the credit rating of the US.   When that happens and it will happen, the United States will have to pay much higher interest rates to borrow money to fund out of control deficit spending.   But that is not the end of the story.   If the United States no longer has a Triple AAA rating then all other ratings for city, county and states will have to be downgraded, as well, since surely the United States must have a higher credit rating that these other government entities since only the federal government can print money. 

The balloon has burst.   Federal deficit spending has got to stop.   There is no other choice if we are going to avoid the bankruptcy of the United States.   President Obama and his Socialist pals in Congress will never cut spending enough to get our fiscal house in order.  As such, we must sweep these Socialists out of office in 2012 and 2014.   We must elect Conservatives that understand Economics 101 and that support free market capitalism, limited government, lower taxes and less regulation, a balanced budget, term limits, real energy, education and health care reform, a strong national defense, including securing our border and fighting Terrorism, the right to bear arms, the sanctity of life and family values that are the foundation of our nation.   This is the platform supported by the majority of the American people and the only way to restore economic growth and job creation in America. 

We have to take back our country in 2012 and 2014 to get our fiscal house in order.   We can do it.   We must do it to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.   If we don't act to stop President Obama from bankrupting our country, the United States credit rating will be downgraded, which will result in dire implications for the American people.   We can't let that happen. 

P.S.  Watch the rising price of gold to get the real picture.    Investors gravitate toward the safety of gold because the dollar is becoming worthless. 

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