Michael Reagan, FloydReports.com
President Obama, the Democratic Party and its members of Congress have spent years blaming former President George W. Bush for the nation’s current economic woes, which is akin to blaming the bank’s tellers for a bank robbery, or for the dishonesty of their bosses, the bank’s executives who were looting the till.
Nobody in the liberal-dominated media bothers to note that in the last years of the Bush presidency Democrats controlled the Congress and thus had a death grip on the nation’s economy, having complete control over the nation’s purse strings. They spent (and spent, and spent) the yet-uncollected taxes of future generations — as well as our own — as if there were no tomorrow.
It wasn’t a Bush Congress that jammed the incredible costs of ObamaCare down the throats of the American people and their children and grandchildren — it was our spendthrift president and his allies on Capitol Hill doing their classic imitation of the legendary drunken sailors on shore leave.
It’s simply common sense to understand that spending money one doesn’t have in the hopes that the future will provide the needed funds is something like believing that some beneficent tooth fairy will come up with the money in the future.
Now the president and the national Democratic Party have suddenly discovered a scapegoat for the latest economic mess they have thrust upon the American people. They insist that the credit-rating downgrade was the fault of the Tea Party trying to control the nation’s purse strings. I’m not kidding. They really expect us to swallow this whopper as the Gospel truth.
They expect us to ignore the fact that the millions of Tea Party members are simply Americans, deeply and sincerely concerned about the nation’s economy and the tendency of the government to spend their hard-earned tax money on whatever scam strikes its fancy.
It’s time to place the blame for our economic malaise where it belongs — on the shoulders of the Obama administration and the Democrats in Congress.
Tea Party members have been the voice of reason, not the wild-eyed terrorists portrayed by the Left’s crazy spin doctors.
What would have averted the credit-rating downgrade and the subsequent turmoil in the markets? Precisely the spending cuts advocated by the Tea Party.
According to a statement by Jenny Beth Martin, a co-founder and national coordinator of Tea Party Patriots, the debt-ceiling compromise was….
Ben Johnson, The White House Watch
Impeachment usually represents a punitive act following the commission of a crime, but some are looking to it as a last means of self-defense. At a Tea Party town hall meeting last night Rep. Michael Burgess, R-TX, said impeachment “needs to happen” to stop Barack Obama from inflicting more “damage” on this country.
The Fort Worth Star-Telegram claims an attendee “suggested that the House push for impeachment proceedings against President Barack Obama to obstruct the president from pushing his agenda.” Burgess, who represents four counties in northern Texas, responded: “It needs to happen, and I agree with you it would tie things up. No question about that.” He later stood by his comment. “We need to tie things up. The longer we allow the damage to continue unchecked, the worse things are going to be for us.”
The Star-Telegram adds, “Burgess said he wasn’t sure whether the proper charges to bring up articles of impeachment against Obama were there.” Since the reporter does not quote Congressman Burgess nor elaborate on this sentence, it is uncertain whether Burgess said he was not sure Obama had committed an impeachable offense or whether the charges could pass the Democrat-controlled Senate. While there are ample grounds for impeachment, it would take intense citizen pressure to force senators to vote for conviction.
Whatever the circumstances surrounding Burgess’ words, he is part of a significant and growing number of Congressmen willing to see Obama removed from office….
Ben Johnson, The White House Watch
Obama scored another historical first on Friday, becoming the first president to see the U.S. credit rating downgraded by Standard & Poor’s, from AAA to AA+. While we hope his presidential reign lasts no longer than January 2013, Americans may have to live with the consequences of Obamanomics for more than a decade to come. The chairman of Standard & Poor’s sovereign debt ratings, John Chambers, told ABC’s This Week program on Sunday the United States could be stuck with the lower credit rating between nine and 18 years. “We’ve had five governments that lost their AAA that got it back,” he said. “The amount of time that it took for those five range from 9 years to 18 years.” He forecast that digging America out of the debt ditch “could take awhile,” and that it would require two things: “a stabilization of the debt as a share of the economy and eventual decline” and “more ability to reach consensus in Washington than what we’re observing now.”
The president’s commitment to deficit spending and unwillingness to make enforceable budget cuts leave a grim prognosis. But the outlook gets worse. As this author noted Friday, there is a chance America will be downgraded yet again. Chambers placed the odds of a future downgrade at one-in-three. Scoring a AA rating would place the Land of the Free on equal terms with Spain and Qatar.
These realities had Obama in full Alinsky mode during his 1 p.m. speech (which took place at two o’clock this afternoon). He opened by saying, while Tea Party intransigence forced S&P to cut our debt rating, “The markets, on the other hand, continue to believe our credit status is AAA.” To bolster his case, he added, “Warren Buffett, who knows a thing or two about good investments, said, ‘If there were a quadruple-A rating, I’d give the United States that.’” Even as he spoke, the stock market was in free fall. The Dow Jones industrial average fell 634.76 points this afternoon. The slide capped off a string of losses so severe that CNBC reports, on this eighth day of the month, “August is already on track to be the worst month for the S&P  and Nasdaq since Oct. 2008,” the first full month of the economic meltdown. And despite earning the Obama administration’s seal of approval, Standard & Poor’s marked down Buffett’s Birkshire Hathaway holding conglomerate from “stable” to “negative” today.
Obama’s Surrogates Savage the Savers
Democratic talking heads did their best to pin blame on their political opponents. This weekend, both David Axelrod and Sen. John Kerry repeated the phrase “Tea Party downgrade.”
Treasury Secretary Tim Geithner eschewed presidential responsibility, as well. “Congress ultimately owns the credit rating of the United States,” he said. This would be true in the sense that Obama offered absolutely no leadership during the debate and presented no plan of his own but would overlook the president’s addiction to deficit spending and hostility to fiscal (or political) responsibility. Geithner, suddenly discovering the Founding Fathers, noted Congress has “the power of the purse in the Constitution.” That fact did not keep Geithner from publicly musing about having Obama unilaterally raise the debt ceiling in late June, leading to a chorus of Democrats demanding the president invoke the 14th Amendment to claim the power of the purse as his own.
Not everyone is reading from the same script, though. As usual, Bill and Hillary Clinton have taken the crisis to spin things in their favor. The Hill newspaper reports former Clinton administration appointees, who insisted on remaining anonymous, said Obama….
Ben Johnson, The White House Watch
Three years ago, many well-meaning Americans suspended concerns about Barack Obama’s experience, judgment, and associations in order to vote for an “historic” president. To paraphrase H.L. Mencken, they got one — good and hard. Friday night, for the first time in history, Standard & Poor’s downgraded the U.S. credit rating from AAA to AA+. The United States earned the top rating the moment such rankings began in 1917 — which means we maintained our AAA rating through the Great Depression, stagflation, malaise, and the 1982 recession. Thirty months of Barack Obama, and it is gone for the first time in history. Change we can believe in!
The retrogression is neither surprising nor is it the only “historic” first The One has perpetrated against the United States. Obama cajoled Congress for weeks that it had to pass a debt ceiling compromise by August 2 to avoid just this occasion. But as Rep. Tom McClintock, R-CA, pointed out, “The purported cuts, even if realized, are far below the $4 trillion deficit reduction that credit rating agencies have warned is necessary to preserve the Triple-A credit rating of the United States government.” S&P used precisely this language in its statement about downgrading the United States, saying the resultant cuts fall “short of the amount that we believe is necessary to stabilize the general government debt burden by the middle of the decade.” It faults political gridlock and the lack of “containment” of entitlements. The same administration experts who insisted GOP sellouts on the debt compromise would stave off Friday’s downgrade also insisted passing a stimulus plan would hold unemployment below eight percent.
Even less surprising is the fact that the Obama administration actually believed its rhetoric could stop the inevitable. When Standard & Poor’s began hinting at its actions, anonymous officials began a whisper campaign that the agency’s math was off. Jake Tapper reported Friday evening, “Because of the pushback, the Obama administration is preparing for the downgrade but is not 100% positive it’s going to happen, officials said. And if the downgrade does happen, officials are not sure when it will happen.” S&P downgraded the U.S. hours later. Choosing talk over action has consequences, at home and abroad.
The consequences of his actions are unknown and foreboding. The new credit rating may cause inflated interest rates to trickle down to states and localities, or make all borrowing rates rise.
Economic growth would shrink the importance of the national debt — but such growth is not expected as long as Obama is president. Economists expert growth in debt, and its attendant economic disintegration, in the years to come. Under most estimates, debt would amount to 88 percent of GDP in ten years. S&P warns under its pessimistic scenario, debt will reach 101 percent of GDP in 2021. (AFP news service reported on Wednesday, that U.S. borrowing topped 100 percent of GDP.) Carmen Reinhart of the Peterson Institute for International Economics testified before the House Budget Committee in March that growth begins to slow noticeably once debt crosses the 90 percent threshold. The European Central Bank suggested negative impacts begin at the 70-to-80 percent level. Even the adoption of the debt compromise spooked the stock market, causing a decline for nine out of the past ten sessions, a streak not seen since 1978 when Jimmy Carter was president.
The other two ratings agencies, Moody’s Investors Service and Fitch Ratings, are not likely to follow suit…at least, not yet. However, Moody’s has warned the ratio would have to come down to 73 percent by 2015 “to ensure that the long-run fiscal trajectory remains compatible with a AAA rating.” For its part, S&P warned “a higher public debt trajectory than we currently assume could lead us to lower the long-term rating again,” to AA, putting us on par with such economic powerhouses as Spain and Qatar.
You Wanted Obama to Make History? He Has
This slide toward mediocrity is only the latest of a string of historic firsts in Obama’s presidency. Yes, Obama was the first black president. He has been called the first….