Posts Tagged ‘US Credit Rating’

Democrats Think Economy Unsinkable, Like The Titanic

December 14th, 2009 No comments
The "Unsinkable" Titanic

The "Unsinkable" Titanic

Democrats and a few Republicans must harbor the same mistaken assumption concerning American fiscal policy as that of Philip A. S. Franklin, Vice President of White Star Line when he made a comment in response to the sinking of his company’s ship, the RMS Titanic. He said “I thought her unsinkable and I based [my] opinion on the best expert advice available.” America has hit a fiscal iceberg and the ship is rapidly flooding with debt that will soon drag it to the bottom of the sea floor, and instead of bailing water over the bow, Congress is widening the hole allowing more debt to flood in.

Over the weekend Congress gave final approval to a $1.1 trillion omnibus spending measure that increases budgets for federal government agencies an average of 12 percent and gives federal workers a 2 percent pay increase. The bill also includes 5,224 pet projects known as earmarks at a cost of $4 billion. But what’s a few billion when you’re spending over a trillion dollars; we can afford it, right? (To get an idea of what a trillion dollars looks like, check out this link.)

Here is a small sampling of the disclosed earmarks:

  • $2.7 million to support surgical operations in space.
  • $200,000 for the Washington National Opera.
  • $30,000 for the Woodstock Film Festival Youth Initiative. Read more…

Moody’s Warns US May Lose Aaa Rating

October 23rd, 2009 No comments
We may all be singing in green tights

We may all be singing in green tights

XINHUA: Today’s news from calls attention to yesterday’s warning from the credit rating giant Moody’s that the US is in danger of losing its Aaa credit rating.

This report comes out on the same day Christina Romer, Chairwoman of the President’s Council of Economic Advisers testifies before Congress that the Stimulus Package is a failure. We expect Congress to take her testimony as a call to pass Stimulus II, more of the same. (We report on her testimony here.)

It is appropriate that we use XINHUA as our dateline since the Chinese are our biggest creditors. Did our reckless administration and Congress think that they could spend our way into oblivion and the Chinese wouldn’t notice? Read more…

Categories: Economy Tags: ,