Yahoo: 'America's Credit Rating Was Intentionally Sabotaged By Congressional Republicans'
"[I]t's difficult to escape the conclusion that America's credit rating was intentionally sabotaged by Congressional Republicans."
So wrote Yahoo Finance economics editor Daniel Gross Friday evening:
In downgrading the U.S.'s credit rating, S&P points out what has long been obvious: Washington's inability to come to an agreement on how to close the large fiscal gaps that have emerged since the recession began is troubling. Recent events have sapped the agency's confidence that the government can and will do what is necessary to align revenues with spending commitments. And it's difficult to escape the conclusion that America's credit rating was intentionally sabotaged by Congressional Republicans.
And what's Gross's real beef with Republicans? If you guessed "No new taxes," give yourself a cigar:
It has long been obvious to all observers -- to economists, to politicians, to anti-deficit groups, to the ratings agencies -- that closing fiscal gaps will require tax increases, or the closure of big tax loopholes, or significant tax reform that will raise significantly larger sums of tax revenue than the system does now. Today, taxes as a percentage of GDP are at historic lows. Marginal rates on income and investments are at historic lows. Corporate tax receipts as a percentage of GDP are at historic lows. Perhaps taxes don't need to rise this year or next, but they do need to go up in the future.
Otherwise, the math of deficit reduction simply doesn't work.
"Otherwise, the math of deficit reduction simply doesn't work."
Bear in mind, this is Yahoo Finance's economics editor, who appears to not understand math.
Since the Democrats took over Congress in 2007, spending has increased by $1.1 trillion or 41 percent.
If we went back to the exact same outlays called for in that last budget approved by a Republican Congress, we'd actually have a $200 billion surplus in fiscal 2012 based on OMB's projected tax receipts for that year.
If we adjusted 2007's spending for inflation, we'd only have a $43 billion deficit next year thereby totally avoiding S&P's downgrade without raising taxes one cent.
How's that for simple math, Mr. Economics Editor?
(H/T NB reader Rusty Arnold)
*****Update: Twitter's @mattjmobile smartly notified me that Gross back in February 2006 predicted the end of blogs. Nice call, Mr. Economics Editor.
*****Update II: @mattjmobile also notes that Gross in February 2010 declared the stimulus a huge success. Is this "economics editor" ever right about anything?
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Comments
It begins.
Submitted by Blonde on Sat, 08/06/2011 - 12:18pm.
Now we're in for the blame game. Off with Geitner's head!!! Investigate S&P!!! Both the White House and Congress will be looking anywhere but in the mirror.
Truly, the ones to blame are those who have had their butts seated in Congress for the last ten - fifteen years. It is beyond absurd to blame the hard core fiscally conservative freshman Republican class for this mess. They've begun to put the brakes on the insanity.
When idiots like this Gross person start with the Republican sabotage crap....we need to remind them of the old "business as usual" paradigm, i.e. the Louisana Purchase (most famously) that were used to BUY VOTES for Obamacare.
Now is the time for the Tea Party Republicans (particularly those who voted NO) to stand up and shout "We tried to tell you so, we didn't CUT ENOUGH, your compromise FAILED".
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
Blonde
Submitted by DontFeedTheTrolls on Sat, 08/06/2011 - 2:34pm.
It's a war. The Republicans, conservatives and TEA Party people on one side, Democrats, dolts and the MSM on the other. Too bad the R's haven't taken their gloves off yet.
Yes it is, DFTT
Submitted by Blonde on Sat, 08/06/2011 - 2:42pm.
As I'm fond of quoting Allen West, I shall do so again.
2010 - 2011 is a shaping maneuver. Preparing the battlefield. The real war begins in 2012.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
X
Submitted by serfer62 on Sat, 08/06/2011 - 7:02pm.
Yes West did a remarkable job of preparing the battlefield...he gave OHbam a 2.4T campagien donation...way ta go dummy
Ruh roh!
Submitted by Rukus on Sun, 08/07/2011 - 7:57am.
I'll be leaving now. J will be with you shortly...
And you do know the Col. had good reason, huh?
Obama wants his bluff back
Submitted by Cool Arrow on Sat, 08/06/2011 - 12:28pm.
No, Mr. President. And you don't get "overs" in 2012 either.
No more mulligans, eh CA?
Submitted by Blonde on Sat, 08/06/2011 - 12:54pm.
Can you imagine playing golf with him?
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
No way, Blonde
Submitted by Cool Arrow on Sat, 08/06/2011 - 12:58pm.
Actually, I pictured him sitting on the floor with Harry Reid for a rousing game of Jacks.
Yahoo Propaganda
Submitted by AgentAmerican on Sat, 08/06/2011 - 12:33pm.
You should see the comment section at Yahoo! Populated by malcontents and misfits. Un-f**kin-believable.
Most excellent point Mr. Sheppard.
Submitted by The Vet on Sat, 08/06/2011 - 12:36pm.
If we adjusted 2007's spending for inflation, we'd only have a $43 billion deficit next year...
I had not heard that. Very good. Iz learn today. Iz happy.
Hip Hop BBQ
Submitted by mikebromo on Sat, 08/06/2011 - 12:46pm.
Went to my YAHOO home page, can't believe the "hip hop BBQ" birthday party reported by Fox News is racist!
But we aren't surprised
Submitted by thomasp on Sat, 08/06/2011 - 2:03pm.
But we aren't surprised because that's what libs do. A vile group!
Thanking Obama for killing Bin Laden is like going into McDonalds and thanking Ronald McDonald for making your hamburger. It's the guy cooking the burger that should get the credit .... not the clown.
hip hop BBQ
Submitted by LarryG on Mon, 08/08/2011 - 4:38pm.
Yeah. I guess describing something accurately is against liberal rules. There was a hip hop artist performing and there was a BBQ - what's the problem?! It was primarily a black event with a few token chump whiteys thrown in. Bah!
Never take the blame or admit the mistake.
Submitted by hbnolikeee on Sat, 08/06/2011 - 12:48pm.
The only way to fix this is to get each and every one of these America haters out of office.
1 + 1 = 11, not 3
Submitted by Red Jeep on Sat, 08/06/2011 - 12:57pm.
Democrat math.
Red Jeep
Submitted by bkeyser on Sat, 08/06/2011 - 1:02pm.
Yup.
You've been busy, BK
Submitted by Blonde on Sat, 08/06/2011 - 1:52pm.
Just wow!
I hit the whole bunch of those....I almost died laughing at the "Elephant in the Room". "Don't call my bluff".
Brilliant work, BK.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
J
Submitted by bkeyser on Sat, 08/06/2011 - 1:53pm.
I just uploaded another one. Here's Jimmy Carter's response to all of this.
BK
Submitted by Blonde on Sat, 08/06/2011 - 2:04pm.
Just wow.
Have you started on the GIF thing yet? Morphing Carter <---> Obama, oh yeah!
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
Good idea J
Submitted by bkeyser on Sat, 08/06/2011 - 2:06pm.
I'll see if I can make that work.
Those are great!
Submitted by Red Jeep on Sat, 08/06/2011 - 10:30pm.
.
Know ye not?
Submitted by Cool Arrow on Sat, 08/06/2011 - 12:56pm.
Know ye not Obama must be about the Dreams of his Marxist deadbeat father?
Too much time has been wasted explaining away the irresponsible words and actions of Shiftless Obama Jr.
He wants to share the wealth and share the sacrifice, but you won't find him expecting anything but animal instinct from the 49% of Americans who have no skin in this experiment.
I catch articles by Gross
Submitted by bkeyser on Sat, 08/06/2011 - 1:02pm.
occasionally and they're all pretty much out there. He's just a Keynesian with a guilt complex at the moment. They know their policies have utterly failed in the best test they've ever had. All the years of Keynesian economics classes, all the back-room poo-pooing of Reaganomics and supply-side economics and "tax cuts for the rich"-- and when a full-on recession is handed to them, with full control of the legislature and executive branches, they put everything they were ever taught into action: TARP (yes, voted on under Bush -by a Democratic legislature- but administered by the Obama Administration), Stimulus, Omnibus, Cash for Clunkers, Dodd-Frank, even Obamacare; all examples of Keynesian economic policy and all complete and abject failures. And now they're caught. Trapped. In the corner with the smoking gun and the economy is bleeding. And they try and blame the paramedics.
This is the reality of the situation and they have not-- and cannot conceive why they have failed.
And for those who blame Boehner and others who voted for the debt-limit increase: had it not passed, the downgrade still would have happened and may have been deemed worse (whether it would have been worse is debatable, but since S&P seems to have a great deal of control over how much we spend in interest going forward, all that really matters in this regard is their opinion.) What can be noted as real achievement from that deal is that 1) the GOP tried to get spending cuts that were real and effective against a great deal of push-back from a larger force, and 2) there will never again be a debt-limit increase that doesn't involve those very real spending cuts. I think this also bodes well for rallying even more support for the BBA.
Why wouldn't the Republicans ruin everything?
Submitted by StarAZ on Sat, 08/06/2011 - 1:04pm.
They don't live in this country...they don't need to borrow money...they don't have kids who will have to cope...and grandkids...they don't remember a better America with hopes and dreams...this doesn't affect them...
Wait...what? They DO live here? Well, why would they do all this?
StarAZ Nails It!
Submitted by rammingspeed on Sat, 08/06/2011 - 1:24pm.
StarAZ
EXCELLENT way of pointing out the truth! I "fan" you and "fave" you, as they say in other blog sites.
10Q!
Submitted by StarAZ on Sat, 08/06/2011 - 1:43pm.
Hey, thanks for faving me, Speed!
Star
Submitted by Model850 on Sat, 08/06/2011 - 5:55pm.
There is one major problem with your thesis: It makes sense.
My guess as to the liberals and the media's answer to your question "Why would they do all this?" would be:
"These extremists strapped on their bombs and, because of their complete hatred of Obama blew everything up -- including themselves -- just to try to bring him down."
Watch for it.
Yahoo: 'America's Credit
Submitted by Dave. on Sat, 08/06/2011 - 1:20pm.
Yahoo: 'America's Credit Rating Was Intentionally Sabotaged By Barack Hussein Obama'
There, all fixed.
And I bet Obama is laughing himself silly at just how easy it has been for him to wreck this country.
-Dave
Vote for the American in November
Marxism
Submitted by rammingspeed on Sat, 08/06/2011 - 1:21pm.
Another disgusting example of Pravda-style propaganda, boldly presented to Yahoo! readers, because Gross knows he's being read largely by blank slate, extremely young people. I've said this for some time now, and I'm going to say it all the time: Gross and his editors at Yahoo! are unreconstructed Marxists who are on the march. That is the true crisis we are facing in this country; the economic woes could be solved in no time if the control of the economy was turned back to the private sector. The Marxists ain't gonna let that happen.
Or ... as in Orwell's novel ...
Submitted by metaphorsbwithu on Sat, 08/06/2011 - 1:26pm.
2 + 2 = 5
One of the key concepts in Nineteen Eighty-Four.
Just so I have this right...
Submitted by Grumpy in Arizona on Sat, 08/06/2011 - 1:29pm.
The R - House passes a bill eliminating Obama-care... and the D - Senate rejects it.
The R - House passes "The Ryan Plan" to reform entitlements... and the D - Senate rejects it.
The R - House passes the first Boehner plan to cut spending while not raising taxes... and the D - Senate rejects it (and doesn't even vote to discuss the plan).
The R - House finally get's a "watered down" version of spending cuts (and political delays built-in) without new taxes... and the D- Senate (without ever bring to the table a plan of their own) begrudgingly passes it .
YET... It was the House Republicans that "sabotaged" the S&P rating during their brief 7 months in office... "Dear Media," please explain how that works again??? (I must have missed something).
- Grump :o)
grumpy and ya forgot to add
Submitted by jkwtrading on Sat, 08/06/2011 - 6:12pm.
grumpy
and ya forgot to add the R's get labeled children...lol.. petulant children for being responsible..
the media is nuts they just don't know it.
I wonder what the interest payments are going to wind up being
Submitted by Dave. on Sat, 08/06/2011 - 1:33pm.
...on the $2.2 trillion reelection slush fund of a birthday present that Boehner and McConnell just gave Obama?
Not to mention the remaining debt we owe.
Nice going, American Idol-hypnotized America. I just can't wait to see what you zombies will elect for POTUS next time around.
-Dave
Vote for the American in November
As to that....
Submitted by NevadanConservative on Sat, 08/06/2011 - 2:02pm.
... the statists' drones are already out.
I saw a Ford Expedition on the way out of my work the other night, the back fully painted with "2012" , the 0 being replaced with the Obama meatball. The owner of which, along with some female and four screaming children, none over six, load up three baskets of groceries and pull out.
I stood there, dumbstruck, for a moment, and started laughing for musta been four or five minutes. I'd seen him paying for all this stuff as I came thru the store on my way out. He'd paid for all that stuff with a Silver Card (Nevada's food stamp program is all electronic) and was driving an SUV.
If any sour solace over the present bunch of events is to be taken, Dave, it is that IF the statists are successful, their loudest supporters will be first in their meat grinder, and THEN their opponents close behind. I wonder how many of them have the wit to know that... or if it is all consumed by the sheepbleat of "Obama good, all else racist!"
NVCon
Watch this video and your
Submitted by jkwtrading on Sat, 08/06/2011 - 6:14pm.
Watch this video and your head will boil.. Your example had SUV's free money, this one everyone gets a nice house too in Tacoma Washington.
http://media.causes.com/1098660
I wish people would stop
Submitted by rbosque on Sat, 08/06/2011 - 1:44pm.
I wish people would stop using Keynes in regards to this problem. Keynes is just a convenient excuse for liberals to spend us into oblivion. Does anyone think that Obama actually read Keynes' theories on macroeconomics? I doubt Obama knows how to spell his name.
Obama and the Democrats are just hyper-tax and spend liberals with the agenda of destroying this economy, there is no other reason why they would go to such extreme measures unless they or someone else knew what they are doing.
Yahoo Contact Info
Submitted by Chicagoray40 on Sat, 08/06/2011 - 2:36pm.
I just sold by portion of Yahoo stock over this piece and sent the receipt of this transaction to Yahoo Corporate. I suggest you do anything you can to let them know you're going to de link any web properties of theirs and will leave them with nothing but the usual generational takers they cater to with garbage dis information and white house propaganda like that.
Notice I don't capitalize white house.
I won't because it doesn't deserve it with this bum on our property dancing around like a banshee barefooted at a HipHop BBQ while he destroyed the nation's 100 year triple AAA credit rating for 10-18 years according to Standard and Poor's themselves.
Yahoo! Corporation
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Santa Clara, CA 95051
Phone (408) 731-3300 Office Hours (8:30 a.m. to 5:00 p.m. PST)
Fax (408) 731-3301
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Yahoo! public relations information and press releases
Two things are infinite: the universe and human stupidity; and I’m not sure about the universe. –Albert Einstein My Twitter
Albert Einstein Update.
Submitted by Avitar on Sun, 08/07/2011 - 3:59am.
The radius of the universe since the big bang is 14.5 billion light years. Though still expanding the Universe is definitely not infinite. ¾*PI*(r cubed) gives the volume of the universe. The Big Bang and the age of the universe were not known when Einstein died in 1955.
There is no formula for calculating the scope of stupidity.
And though...
Submitted by Rukus on Sun, 08/07/2011 - 8:20am.
There is an event horizon with the universe (as we know it) that don't slow down the spendocrats one bit. They don't see the future just the now, just keep throwing all that cash down that black hole and buy more votes... event horizon (spending, buying votes) no escape! Our kids are doomed! : (
It would not surprise me in the least
Submitted by NevadanConservative on Sat, 08/06/2011 - 3:33pm.
if any lipstick marks on BHO's private person were Yahoo purple.
We won't have to worry about a baby in the White House, given how yahoo and google are so snugged up in bed with BHO. They are both panting and drooling in hopes of being the rulers over the net under that 'net neutrality' feces. Their antics would be almost funny, if the stakes were not so dire.
NVCon
The fellas on
Submitted by NL207 on Sat, 08/06/2011 - 3:36pm.
the down low in Chicago don't wear lipstick.
So, the Republicans who
Submitted by ckc1227 on Sat, 08/06/2011 - 3:55pm.
So, the Republicans who wanted to cut the $4 trillion that was being asked for by these rating agencies are to blame?
Taxes vs personal income (not GDP)
Submitted by Cactus Kurt on Sat, 08/06/2011 - 4:29pm.
Daniel Gross spewed: "Today, taxes as a percentage of GDP are at historic lows"
Isn't this a good thing? Historically low taxes as a percentage of GDP implies that the country is producing things more effeciently. How about comparing taxes as a percentage of personal income, Mr. Gross? Yeah, I thought so.
Excuse me while I change
Submitted by jessieH on Sat, 08/06/2011 - 4:37pm.
Excuse me while I change everything "yahoo" on my computer. I say it's time we stop yahoo from getting any bigger, any richer. I'm getting real tired of the accusations from the liberal idiots.
The only party to blame for
Submitted by eaglewingz08 on Sat, 08/06/2011 - 5:55pm.
The only party to blame for the downgrade is the democraps. The democraps held an invincible majority in Congress from 2008-2010. At any time they could have put up a clean bill upping (no democraps I'm not calling the President uppity) the debt ceiling through February 2013, without the possibility of any republican obstructionism. The democraps could also have passed a debt ceiling increase with an increase in taxes (revenues) through reconciliation, at any time prior to January 1, 2011, without the republicans having any power to block it.
So the only issue is why did the democraps punt on this issue and insert grave uncertainty in the market, for what they perceived to be the best interests of their party over the best interests of their country (giving the benefit of the doubt that the country in their heart of hearts, isn't the Soviet Union, but the USA). The answer might be that they wanted to eviscerate the republicans especially the tea partiers to have to vote to violate their principles, and thereby become hypocrites who could be more easily defeated in 2012, due to such potential betrayal. And the democraps knew they had a pliant obsequious press corp who would endlessly repeat every slander, libel, misrepresentation, villification, against the tea party members of Congress.
A 100% Yahoo Revenue Tax Is A Bill Of Attainer
Submitted by Avitar on Sun, 08/07/2011 - 3:46am.
Even though unconstitutional I think a case could be made for taxing the incomes of Democrat cronies who call for higher taxes progressively. 90% of anything anyone makes from NBC/Comcast, PBS, CBS ABC/Disney, CNN/Time Warner, and a claw back tax similar to Bill Clintons 1993 tax to recover everything GE made last year and everything ever made by the rich who want higher taxes. After the 16th amendment it is no longer required that all industries are taxed equally. Let us begin targeting those which got us into this mess.
Warren Buffet alone could pay for a week of Barack Husain Obama. Hollywood not being a capital forming industry really does not make that much and if all of those Obama lovers are taxed at 100% there is only another four or five days in Hollywood but collecting everything they make for a year might still provide SAG members with perspective. We certainly should claw back the income made from Fannie and Freddy Mac and the five big banks by the people who took on all of the debt in the public's name. The 14th amendment protects legal debts of the United States which Congress accumulates it says nothing about debt acquired by a Federal Reserve bank on its initiative.
It's about time
Submitted by gr29az on Sun, 08/07/2011 - 5:16pm.
Congressional republicans did something right !
Republicans "Grossed" out.
Submitted by donaldduck on Sun, 08/07/2011 - 11:52pm.
So chief Yahoo economist Dan Gross says the GOP is responsible for the credit rating downgrade. Those rotten bast*rds, wanting to cut spending and balance the budget. Yep, this genious may be onto something here!! I bet there is a spot in the Obama administration for this brilliant thinker.
Obamacare the reason for our downgrade.
Submitted by pcnav on Mon, 08/08/2011 - 2:39am.
Our credit rating was destroyed by Obamacare and other socialist programs that leech off the tax payers. The tea party folks are starting to set things right but they won't be able to do the job proper until we get the scumbag democRATs out of the driving seat in our capitol.