What Obama Should Have Said: This is the Tea Party's fault

[David Gill]

President Obama released a statement on the downgrade of U.S. Treasury bonds that failed to mention Republicans or place any blame for S&P’s decision. To continue pretending both sides are to blame is dishonest and misses an opportunity to hold the GOP responsible for its actions. The following is what I think the President should have said:

Good evening,

Moments ago, Standard and Poor’s released a report detailing their opinion on the credit worthiness of the United States. In the past century our debt has grown to become considered the safest investment in the world- an unofficial global currency. It has been so strong that, instead of cash, banks instead choose to hold our treasury bills. Today’s announcement puts that in jeopardy. For the first time since this system began, our country’s credit rating has been downgraded by one of the major agencies. This is an unprecedented event and a sign of just how far our political system has fallen. It is an indictment not of the capabilities of the American people to work and build wealth, but of their government’s ability to responsibly collect and spend.

I want to take a moment to explain what this means to the average American. This is not the beginning of another financial crisis. The U.S. has not defaulted on its obligations and the S&P report is not being endorsed by any of the other major agencies. There will be no run on the banks and no mass panic on Wall Street. What is likely though, is that our government will have to eventually pay out more interest on our loans- just like a person with weak credit pays more for a mortgage. The implication of this report is that the impasse in Congress and the compromised debt deal that resulted will cost the United States a minimum of 100 billion extra dollars just in servicing our debt.

The report makes it perfectly clear why Standard and Poor’s lowered the government’s rating. It’s not because of changes to our gross domestic product, our productivity, or our unemployment. It is because of the obstacles our Congress faced last month in passing what should be simple and routine legislation. It’s because extremists in this country have grabbed enough power that they could make a credible threat to destroy our economy if their demands weren’t met. They don’t just admit this, but take pride in it. Mitch McConnell, the Minority Leader in the Senate, said the country’s credit was “a hostage that’s worth ransoming.” This downgrade notice explicitly says that it is this kind of political brinkmanship which has cost us our AAA score. Argue about the rating all you’d like, but you cannot deny their main points.

http://www.politicsundelivered.com/2011/08/statement-on-downgrade-of-us-treasury.html">Click here to read the full speech!

[Cronus Protagonist]

1. No such thing as a Tea Party

It was the Republican Party's fault.

[David Gill]

2. Yes and no

If we were dealing with the traditional GOP they would have tried to use the ceiling as leverage to get some of what they want. But at the end of the day they would have know the limit had to be lifted- they'd never do something that risked the rich losing a lot of money. John Boehner found that the inmates have almost taken over the asylum; this fringe group that has been placated and humored by the establishment for years is now in power and is willing to burn the country's economy down to get what they want.

[Name removed]

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