POLITICS

The US Downgrade: After Self-Inflicted Humiliation, Some Reprieve

August 8m 2011

5:29 pm, Central

Diane W. Collins

dcollins@marketingweb.com

As the Left's PR machine gears up to blame the Tea Party for Standard and Poor's downgrade and the Democrats throw public temper tantrums that would garner Academy awards in Hollywood," let's look at some facts.

I've just spent weeks covering Treasury Secretary Tim Geithner and the Obama administration as they attempted to redefine the meaning of "default," scaring seniors, military families and the world. They told all who would listen the United States would default on its debt after the August 2nd [X-Date] when we knew there was no possibility of that happening.

After enlisting the liberal media and the credit rating agencies to help promulgate the scenario and draw attention to the matter, the United States actually had its credit rating downgraded. The Left was surprised, caught off guard by their self-fulfilling prophecy! What did they think would happen? Geithner was astonished when he heard the news. Perhaps he played his role too well. And, how did he propose to fix the situation? Yet, another machination. A "$2T error" regarding Standard and Poor's analysis of the United States miraculously was discovered by Treasury. The credit rating agency was reviled and accused of not understanding their profession... being "math challenged." Then today in a press conference that was delayed three times (while they watched the markets), President Obama told us, "The United States will always be a AAA nation." Frankly, I'm getting a little dizzy watching these guys spin. That's how it is when your "truth" is whatever you need to win in any given situation.

Herein lies the true audacity of the Left. They prevented the debt crisis solution from happening and now attempt to "kill the messenger" saying it is the Tea Party's fault. Not convinced? What did the Tea Party or conservative congressmen do during this entire charade? They focused on the problem. The House passed legislation that would have solved the debt crisis and prevented the S&P downgrade. The Left wouldn't even let it come to the floor of the Senate. Cut, Cap and Balance was called "draconian," "ill thought out," "the worst legislation to be brought..." Yet, it was the only legislation that fulfilled the requirements Standard and Poor's had set out from the beginning.

After the downgrade Friday night, many of us spent a rather restless weekend wondering what would transpire Monday morning. I watched Tel Aviv lose 7% of market share; then the Asian markets where the Dow FUT fell over two hundred points. I listened before the NYSE opened as Standard and Poor's explained their position. They said the downgrade wasn't based so much on the United States ability to pay as it was on the "political dysfunction and lack of leadership" which caused them to believe the United States could not work out its debt problems as easily as, oh..., say FRANCE. S&P also cited our lack of a plan to address the long term solution, one which must involve entitlement programs. (I would correct S&P saying we have a plan, we just can't get it past the Left. The "dysfunction" part they have right, we'll fix that in November.)...

So, what happened as a hyped up world listened to the boy who cried wolf? There was a "flight to safety..." gold and United States Treasury securities. This went on all last week, even prior to the downgrade. That flight continued today as the stock market dropped below 11,000 closing at 10,809.86, losing over 600 points. The price of gold increased well over $1700 an ounce and investors bought United States Treasury securities, pushing yields down even further.

Guess the world still believes we're the best bet they have on this crazy planet... AAA or not. Now, let's fix the situation before we prove them wrong.

Contact: Representatives, Contact: Senators

POLITICS

The US Downgrade: After Self-Inflicted Humiliation, Some Reprieve

Further Reading: