A government official who remains nameless has informed ABC News that the Obama administration expects a credit downgrade to AA+ or AA from AAA. This will be another historic first that President Obama has presided over. But of course, that official went on to blame Republicans.
Officials [sic] reasons given will be the political confusion surrounding the process of raising the debt ceiling, and lack of confidence that the political system will be able to agree to more deficit reduction. A source says Republicans saying that they refuse to accept any tax increases as part of a larger deal will be part of the reason cited.
So when it happens, expect the official line from the White House to be that someone else is to blame. (As if you needed me to tell you that.) You know, because the debt can’t have anything to do with the unprecedented spending that’s taken place in the last few years.
Update: Oh geez, it gets worse. It’s not something in the future. It’s now.
Lowering the nation’s rating one-notch below AAA, the credit rating company said “political brinkmanship” in the debate over the debt had made the U.S. government’s ability to manage its finances “less stable, less effective and less predictable.” It said the bi-partisan agreement reached this week to find at least $2.1 trillion in budget savings “fell short” of what was necessary to tame the nation’s debt over time and predicted that leaders would not be likely to achieve more savings later on.
The decision came after a day of furious back-and-forth between the Obama administration and S&P. Government officials fought back hard, arguing that S&P made a flawed analysis of the potential for political agreement and had mathematical errors in its initial report, which was submitted to the Treasury earlier in the day. The company had overstated the U.S. deficit over 10 years by $2 trillion, officials said.
Yes, it’s always someone else’s fault. I was just telling Mr. LC we should re-finance our mortgage to a 15 year mortgage at the lower rates. Now it’s probably too late. Thanks, Obama. You could have arrived at a deal if not for your insistence on increased spending and tax increases on the job creators. Way to go. Now blame it on everyone else. That’s some leadership style you’ve got going on.
Update 2: If we can’t refinance our mortgage, it will be Obama’s fault. We live within our means. Our president doesn’t. But he sure does live like a king, doesn’t he?
Update 3: Right Klik linked – thanks!