10phone2 Posted August 6, 2011 Report Share Posted August 6, 2011 Bye bye AAA rating http://money.cnn.com/2011/08/05/news/economy/downgrade_rumors/index.htm?iref=BN1&hpt=hp_t1 Quote Link to comment Share on other sites More sharing options...
Scotty2Hotty Posted August 6, 2011 Report Share Posted August 6, 2011 Congress had years to clean this up, but choose to do this. Time they start cutting and stop spending. Congress needs to watch extreme couponing to learn a lesson in budgeting. Quote Link to comment Share on other sites More sharing options...
Guest Hal Posted August 6, 2011 Report Share Posted August 6, 2011 Congress had years to clean this up, but choose to do this. Time they start cutting and stop spending. Congress needs to watch extreme couponing to learn a lesson in budgeting. Watch as the left tries to cut military spending. Removing the entire department of defense wouldn't even make a dent in the deficit either. Quote Link to comment Share on other sites More sharing options...
nurkvinny Posted August 6, 2011 Report Share Posted August 6, 2011 "Just"? Nope. Quote Link to comment Share on other sites More sharing options...
LJ Posted August 6, 2011 Report Share Posted August 6, 2011 Well.... they can't raise interest rates, S&P said that is a major factor that would cause the U.S. to drop to AA from AA+. In reality, the U.S. was already last in AAA rating, now they are first in AA+. I don't think this drop is really going to cause the mayhem that people want to think it will. Quote Link to comment Share on other sites More sharing options...
KillJoy Posted August 6, 2011 Report Share Posted August 6, 2011 So... how many here think that Obama is the CAUSE of this? :gabe: KillJoy Quote Link to comment Share on other sites More sharing options...
nurkvinny Posted August 6, 2011 Report Share Posted August 6, 2011 So... how many here think that Obama is the CAUSE of this? :gabe: KillJoy THE cause or A cause? "A" cause for sure. Quote Link to comment Share on other sites More sharing options...
Scotty2Hotty Posted August 6, 2011 Report Share Posted August 6, 2011 Watch as the left tries to cut military spending. Removing the entire department of defense wouldn't even make a dent in the deficit either. Shooting one of our major exports and national security in the foot once again. But, I bet they utilize the Clinton motto of less is better. (Until there's a major conflict....) I saw defense cuts coming, but I have a feeling it'll turn drastic. In the same token, it's about time to crack down on illegal aliens not paying taxes and punish those who employ them too. I'd hate to see the figures of illegals not paying taxes. Quote Link to comment Share on other sites More sharing options...
Scotty2Hotty Posted August 6, 2011 Report Share Posted August 6, 2011 So... how many here think that Obama is the CAUSE of this? :gabe: KillJoy Honestly, his party can take a nice chunk of the blame honestly. Boehner has the right idea of cutting $1.2 Trillion in spending, and that's just a start. If you keep spending, the debt don't go away. Quote Link to comment Share on other sites More sharing options...
wagner Posted August 6, 2011 Report Share Posted August 6, 2011 How much credibility does the S&P have these days? From what I was reading not much... Quote Link to comment Share on other sites More sharing options...
BDHG940 Posted August 6, 2011 Report Share Posted August 6, 2011 THE cause or A cause? "A" cause for sure. +1 (what a mess) Quote Link to comment Share on other sites More sharing options...
wagner Posted August 6, 2011 Report Share Posted August 6, 2011 Reading some of the UK papers take on this, and it is kind of funny. They pretty much call it how it is, bad politics caused all of this and it should have been avoided. Shit is about to get real, wait for the nightly news tag lines... Quote Link to comment Share on other sites More sharing options...
AWW$HEEET Posted August 6, 2011 Report Share Posted August 6, 2011 Funny they did it on friday AFTER the mkt closed. Quote Link to comment Share on other sites More sharing options...
Scotty2Hotty Posted August 6, 2011 Report Share Posted August 6, 2011 Reading some of the UK papers take on this, and it is kind of funny. They pretty much call it how it is, bad politics caused all of this and it should have been avoided. Shit is about to get real, wait for the nightly news tag lines... No doubt it being very bad politics. As the prevailing example of democracy, we're failing at it. Politicians can't get over their agendas or personal gain. Quote Link to comment Share on other sites More sharing options...
wagner Posted August 6, 2011 Report Share Posted August 6, 2011 No doubt it being very bad politics. As the prevailing example of democracy, we're failing at it. Politicians can't get over their agendas or personal gain. Yes sir, one of the things I learned in my econ class: Politicians only do what is good for them in the short term for re-election in regards to the economy. "Oh hai guyz lets fuck Obama and ruin his attempt to get re-elected, oh wait that might hurt the economy and the united states? FUCK IT PLAY POLITICS LIKE A BAUCE" Quote Link to comment Share on other sites More sharing options...
10phone2 Posted August 6, 2011 Author Report Share Posted August 6, 2011 I do believe that most of it is not Obama's fault. This has been building since WWII. Were Obama does take his part if the blame is not wanting more cuts and go past the demands of S&P. That would have meant cutting tree hugger programs, welfare, unemployment to normal levels, and reduce the military.....that would have got the job done and lost a ton of supporters. Big government has been used to buy votes from both parties and now it finally has hit the fan. I am filling up my gas car and gas cans in the morning, because I expect gas to be back to $4 by the end of next week or two at the latest. Yes, S&P does not have the best reputation. Quote Link to comment Share on other sites More sharing options...
Guest Hal Posted August 6, 2011 Report Share Posted August 6, 2011 Shooting one of our major exports and national security in the foot once again. But, I bet they utilize the Clinton motto of less is better. (Until there's a major conflict....) I saw defense cuts coming, but I have a feeling it'll turn drastic. In the same token, it's about time to crack down on illegal aliens not paying taxes and punish those who employ them too. I'd hate to see the figures of illegals not paying taxes. This graph might interest some people. I can't remember the source, it's from a policy class. http://i49.photobucket.com/albums/f277/punkhott712/Picture1.png Quote Link to comment Share on other sites More sharing options...
KillJoy Posted August 6, 2011 Report Share Posted August 6, 2011 Politicians only do what is good for them in the short term for re-election in regards to the economy. I agree with this. :megusta: KillJoy Quote Link to comment Share on other sites More sharing options...
10phone2 Posted August 6, 2011 Author Report Share Posted August 6, 2011 Yup, welfare to get you on the system and voting. Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted August 6, 2011 Report Share Posted August 6, 2011 Everything I've been able to find (which doesn't seem obviously biased) pegs defense spending at ~20% and one of the single largest chunks of our federal budget. http://en.wikipedia.org/wiki/United_States_federal_budget Quote Link to comment Share on other sites More sharing options...
Guest Hal Posted August 6, 2011 Report Share Posted August 6, 2011 I've never seen a figure that high. From econ to policy, all the figures I have seen are right around 6%. See if this link works. http://www.google.com/url?sa=t&source=web&cd=5&ved=0CEEQFjAE&url=http%3A%2F%2Fwww.cfr.org%2Fcontent%2Fpublications%2Fattachments%2FTrendsinUSMilitarySpending.pdf&rct=j&q=US%20defense%20spending%20percent%20of%20national%20income&ei=eao8TvKLI62lsALq3Iwo&usg=AFQjCNETm6E3Kni6IOpl-RkFsT7puEhtvA Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted August 6, 2011 Report Share Posted August 6, 2011 I've never seen a figure that high. From econ to policy, all the figures I have seen are right around 6%. See if this link works. http://www.google.com/url?sa=t&source=web&cd=5&ved=0CEEQFjAE&url=http%3A%2F%2Fwww.cfr.org%2Fcontent%2Fpublications%2Fattachments%2FTrendsinUSMilitarySpending.pdf&rct=j&q=US%20defense%20spending%20percent%20of%20national%20income&ei=eao8TvKLI62lsALq3Iwo&usg=AFQjCNETm6E3Kni6IOpl-RkFsT7puEhtvA I think our (my) confusion is in between % of Income/GDP and % of the federal budget. Did you go to the wiki link? Ya, I know, Wikipedia.... but several other sources have the same numbers. Speaking to what that graph says about 'social programs' spent % of GDP; I don't know how it can be that high since the US GDP was 15T (2009) and the TOTAL federal budget was 3.5T. That's 23%. I'm sure you can figure that no single part of the federal budget is 70% of the federal budget (.16/.23). You can ignore the 1st link since it's clearly very biased Link Quote Link to comment Share on other sites More sharing options...
Scotty2Hotty Posted August 6, 2011 Report Share Posted August 6, 2011 This graph might interest some people. I can't remember the source, it's from a policy class. http://i49.photobucket.com/albums/f277/punkhott712/Picture1.png We can also link the chart to global conflict. I wouldn't so much venture it into who holds the highest political office, bit you can see trends within the political parties. Either way, the defense side of the house also collects a percentage of GDP (4% from estimates) Granted, only 3.0 to 4.4% of the GDP was spent on the Military during the Bush era. If you ask me, that's a drop in the well as far as spending is concerned. Point: Cutting Defense spending won't help much, and will set us back further for future conflicts. Reason so much was spent post 9/11 was due to the large cuts during the Clinton time in Office. It doesn't benefit us staying behind the 8 ball in the Arms industry. Quote Link to comment Share on other sites More sharing options...
Guest Hal Posted August 6, 2011 Report Share Posted August 6, 2011 I think our (my) confusion is in between % of Income/GDP and % of the federal budget. Did you go to the wiki link? Ya, I know, Wikipedia.... but several other sources have the same numbers. Speaking to what that graph says about 'social programs' spent % of GDP; I don't know how it can be that high since the US GDP was 15T (2009) and the TOTAL federal budget was 3.5T. That's 23%. I'm sure you can figure that no single part of the federal budget is 70% of the federal budget (.16/.23). You can ignore the 1st link since it's clearly very biased Link Keep in mind that the chart I posted is GNP not GDP so that will skew the stats as GNP includes profits from outside of the US. Yes, social programs are a massive part of the federal budget. Here's quick data from 2010 which obviously won't match the earlier data I posted. Social programs approximate % of budget: Social Security - 20% Medicare/Medicaid - 21% Safety net programs - 14% Total from only the major programs - 55% These numbers exclude the smaller social programs that sit in the single digits for percentage. We can also link the chart to global conflict. I wouldn't so much venture it into who holds the highest political office, bit you can see trends within the political parties. Either way, the defense side of the house also collects a percentage of GDP (4% from estimates) Granted, only 3.0 to 4.4% of the GDP was spent on the Military during the Bush era. If you ask me, that's a drop in the well as far as spending is concerned. Point: Cutting Defense spending won't help much, and will set us back further for future conflicts. Reason so much was spent post 9/11 was due to the large cuts during the Clinton time in Office. It doesn't benefit us staying behind the 8 ball in the Arms industry. On that chart you can clearly see the Korean Conflict, Vietnam (leveling), Carter's "hollow army", Raegan's defense buildup, and the wars following 9/11. Quote Link to comment Share on other sites More sharing options...
craig71188 Posted August 6, 2011 Report Share Posted August 6, 2011 It's interesting the news media's "narrative" was default will ruin the credit rating. The great compromise passes and the markets tank and all the rating services are still "pessimistic" - it was about too much spending all along and this bill does not reduce the amount we are spending (it "cuts" the rate of increase). Politicians are addicted to spending. I think the republicans are getting the message (via the tea party) to cut - but I don't think the majority of the democrats get it. For example - the very underported FAA Bill, passed by the house, ignored by the senate before they recessed. One of the main sticking points - cutting $16M in "ticket subsidies" to a dozen or so small market airports. If they can't cut $16M in airfare subsidies, can they cut out anything? Quote Link to comment Share on other sites More sharing options...
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