I already beat you to the punch on that piece of propaganda crap, dearie - read my post #40696 - that statement was just an acknowledgement of fact, not a reason for the downgrade.
Again, here is what S&P said ... "We view the act’s measures as a step toward fiscal consolidation. However, this is within the framework of a legislative mechanism that leaves open the details of what is finally agreed to until the end of 2011, and Congress and the Administration could modify any agreement in the future. Even assuming that at least $2.1 trillion of the spending reductions the act envisages are implemented, we maintain our view that the U.S. net general government debt burden (all levels of government combined, excluding liquid financial assets) will likely continue to grow."
"Standard & Poor’s takes no position on the mix of spending and revenue measures that Congress and the Administration might conclude is appropriate for putting the U.S.’s finances on a sustainable footing."
In other words, cluless clo, it's the continued net spending that caused the downgrade. If the government raises taxes, it will further depress the economy and the government will not receive near what they simplemindedly believe will come in (on paper, anyway) from raising taxes. So, the only recourse is to rein in spending, big time. clo, what do you do when you're running up a deficit in your personal bank account and your banker says you have to pay off your overdraft, eh? You quit spending so damn much money ... it's as simple as that and everybody in America (and at S&P) knows that straightforward fact, except for the dumbasses in the Democrat Party.
Cheers!
B.
The essential American soul is hard, isolate, stoic, and a killer. It has never yet melted. ~ D.H. Lawrence
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