Govt official: US expecting S&P downgrade

From ABC’s Jake Tapper (emphasis mine):

A government official tells ABC News that the federal government is expecting and preparing for bond rating agency Standard & Poor’s to downgrade the rating of US debt from its current AAA value.

Officials 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.

The official was unsure if the bond rating would be AA+ or AA.

-Jake Tapper



The unwillingness of Republicans to raise taxes is to blame? They really can’t be serious. They are lowering our rating because we can’t agree on getting our debt and deficits under control but they think tax increases will fix it?

Sorry, but this smells funny; like ‘political hack’ funny.

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45 thoughts on “Govt official: US expecting S&P downgrade

  1. I read recently that the white house was trying to cajole the rating agencies to help them get their tax increases by threatening before the bill passed. Why would they not want to keep that mantra going and use this as a pressure point to raise taxes. First cuts I would make is to reduce the salaries of the congress & senate. Put them all on Social Security System and cancel their retirements until the budget is balanced. That is the start. I do not have time to go into the details right now, they will come later. That is how the congress does it.

  2. S&P O’s B-day party was on the 4th… your late!

    Although Im sure your gift is graciously accepted by the White Hizzouse.

  3. Well S&P did it, wer’e downgraded to AA+.

    I hope this kicks O’s ass as much as I’d like to.

  4. Oh, I thought the Democrats were blaming the Global Warming as the reason for the downgrade!
    Maybe Mrs. Bush was responsible? Anyone or anything except—-
    THEM TAKING ANY F*#king RESPONSIBILITY!!!!!!!!!!!!!!!!

  5. remember people is tea party fault . where the politician last 2 days after they vote for pass the debt deal

  6. That won’t happen. S&P will not name any political party in any statement. Dream the eff on. S&P only cares about being honest with their investors to keep what’s left of their credibility.

  7. But…we would probably sell more treasuries if our interest rate was higher.
    Wouldn’t we?
    It’s bad for us of course, but good for the bond buyers.
    (.)_(.)
    Which would mean we’d be plunging headlong into more debt a little faster.
    Could the PantloadInChief realy be that diabolical?

    Even though O didn’t want more cuts.
    He will probably say he did.
    He will probably say that he “wanted deeper cuts, but the R’s wouldn’t agree to tax the rich”.

    *bangs head on wall*

  8. If these zombies cite that as a reason, they may as well close their doors…and lock ’em for good…just like many other businesses out there are doing.

    Who dropped the entire Earth down Alice’s hole?!!! We’re all in the A-hole!

    (Maybe it’s the AA-hole)

    Good thing I keep “Scotty” on retainer. “Enterprise, do you have a lock on my position?” “Make it so.”

        1. SO PERSEPHONE,
          Your a one upper huh?
          That was great though,
          gotta give prop’s,
          where props are due.

            1. As was I Persephone,
              It was an outstanding improv
              at an excellent point in time.
              Well done.

      1. I’ve…got…a…plan.

        It’s called, Preparation H…and I’m pppprepared to use it.
        Aaaaahahahahahaha!

        (credits to Austin Powers. He, I and Captain Kirk went to different schools together.)

      2. I’ve…got…a…plan.

        It’s called, Preparation H…and I’m pppprepared to use it.
        Aaaaahahahahahaha!

        (credits to Austin Powers. He, I and Captain Kirk went to different schools together.)

  9. This shouldn’t come as a surprise to anyone. The ratings agencies were on record saying $4 trillion needed to be “cut”. The Republicans caved at $2 trillion and the narrative was set that they wouldn’t agree to tax hikes on the rich.

    So of course that’s going to be why we get down graded.

    It would have been better if the Republicans had not won back the majority in the house. Just enough seats to prevent a super majority. To prevent another Obamacare.

    Hell. It doesn’t matter. They’d blame the Republicans no matter what the truth is. We just have to fight back and get through this. 2012, 2012, 2012, 2012

  10. This should surprise no one. The ratings agencies are puppets of the regime and the Fed. The current deflationary collapse we’re experiencing is orchestrated. The Fed pulled $100B/month out of the bond market like a crack addict going to rehab. Stocks followed. QE is unpopular so in order to continue The Great Ponzi, the Fed and Obama need to look like saviors. The printing presses will be red hot by October.

    No action will save this economy. Entitlements, wars, and Direct taxation over the last century have destroyed the Republic. The dollar will be firewood by 2013. Sorry, Mr. Franklin. We The People couldn’t keep it.

    BS

    1. BBScoop, I believe you are only 1/2 right, if you think about it, the bond agency’s are a GLOBAL entity, and this is a GLOBAL situation beings how we are all tied together.
      So if in fact my theory is correct, in order to acquire a ONE WORLD economy, you have to take down the biggest economy first then the dominoes start to fall, Greece,Spain, Portugal,Italy,Germany and so on and so forth,because no sovereign country want to give up their autonomy,
      then new GLOBAL POLITICAL Class steps up and starts the ball rolling on the NEW GLOBAL CURRENCY, the SORO, because then ALL GLOBAL currency will be kindling.
      Just a thought.

  11. It does sound funny. But if the official Moody’s report comes out and it actually does cite the Republicans refusing tax increases as one of the reasons, then we’ll know for sure that Moody’s is in cahoots with the rest of them.

    1. People work at Moody’s. It may not be some grand conspiracy at all. The liberal narrative permeates everything. They just believe what they read, that’s all.

      1. I just finished reading the full text from the S&P release (available at ZeroHedge). To me it is fair description of what has happened and what they consider likely to happen between the Congress and the President. It does mention the Republicans specifically, but in a matter-of-fact way. Obviously there are limited options to bring down the deficit, and higher taxes is one of them.
        Thus Scoop’s assessment that the comment came from a political hack seems to be spot on.

  12. Or like NWO multinational banks making their move and politically damaging the one force in the U.S. that can turn around the progress towards collapsing and restructuring of the world economy. /tin foil hat

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