S&P agrees: it’s “The Tea Party Downgrade.”

Via Waylon Lewis
on Aug 7, 2011
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Media forgets to report why S&P lowered US Credit Rating for 1st time in History: Congress Republicans.

It’s a cynical plan, that would be masterful if We the People and our media weren’t stupid…which we often are:

Congress challenges President Obama on the Debt Ceiling, something that’s been passed a hundred times without controversy by Republican and Democratic presidents in the past: hurt Obama’s popularity and distract him from righting our economy. Downgrade equals higher interest rates, further damaged confidence, reduced investments, worse economy leading into 2012 election. Obama, the man in charge in the public’s view—though he’s only one of three branches of our government—gets the blame, loses any credit. Republicans regain White House, where they’ve successfully created half our debt in just the last presidency, a fact they love to ignore.


But S&P isn’t stupid. It’s right there in page four of the S&P Downgrade report:

“We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act.”

For more.

The “Tea Party Downgrade”:

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About Waylon Lewis

Waylon Lewis, founder of elephant magazine, now elephantjournal.com & host of Walk the Talk Show with Waylon Lewis, is a 1st generation American Buddhist “Dharma Brat." Voted #1 in U.S. on twitter for #green two years running, Changemaker & Eco Ambassador by Treehugger, Green Hero by Discovery’s Planet Green, Best (!) Shameless Self-Promoter at Westword's Web Awards, Prominent Buddhist by Shambhala Sun, & 100 Most Influential People in Health & Fitness 2011 by "Greatist", Waylon is a mediocre climber, lazy yogi, 365-day bicycle commuter & best friend to Redford (his rescue hound). His aim: to bring the good news re: "the mindful life" beyond the choir & to all those who didn't know they gave a care. elephantjournal.com | His first book, Things I would like to do with You, is now available.


3 Responses to “S&P agrees: it’s “The Tea Party Downgrade.””

  1. Alyosha says:

    S&P's purpose is to rate credit risk. S&P had six months to make this decision — the biggest decision that anyone at S&P would ever make. They had six months to check the accuracy of the numbers. Instead, they made a mistake. And the stunning thing is that the mistake amounted to $2 trillion dollars. The mistake is indisputable and S&P has admitted it — they did not properly incorporate baseline numbers from the Congressional Budget Office. And then — even more incredibly — when the White House finally saw the numbers on the day the press release was to go out and pointed out the error — S&P did not revise their conclusions. They simply rewrote the press release to put more of the blame on political infighting. So this isn't a Tea Party issue. The real issue here is how this decision bolsters an effort at deficit reduction when the economy calls out for more government spending to counteract double dip recession. Wall Street pays S&P through fees on debt rated deals. And S&P knows how to jump when their Wall Street Repuiblican masters tell them too. That is why S&P continued to rate sup prime junk debt as triple A into 2008. And that is why they have downgraded US debt now

  2. […] this happened. And they had the gall to blame President Obama, who gave up 98% of what he wanted in the interests […]