Despite backroom dealing and likely a number of veiled threats, the credit ratings agency Standard & Poor just formally changed its outlook on the United States as a debtor from “stable” to “negative” and said that Obama’s government could lose its AAA rating if officials fail to bring its spending in line with revenue.
The Obama administration privately urged Standard & Poor’s in recent weeks not to lower its outlook on the United States — a suggestion the ratings agency ignored Monday, two people familiar with the matter said.
Treasury Department officials had been discussing with S&P whether the ratings agency should change its outlook on the United States to “negative” from “stable,” an indication that the country could lose its crucial AAA rating in coming years over its soaring debt levels.
Treasury officials told S&P analysts that they were underestimating the ability of politicians in Washington to fashion a compromise to curb deficits, a Treasury official said. They argued a change in ratings was not needed at this time because the debt was manageable and the administration had a viable plan in the works, the official said.
But S&P analysts told Treasury officials on Friday that they were unmoved — and released a report that expressed skepticism that the political parties could come together on how to bring spending in line with revenue.
Amazing! Standard & Poor stood up to the Obama Regime and told them that their profligate deficit spending was not only egregious general theft but a poor risk for anyone who might consider loaning them money.
They also rejected Obama’s claims of being able to reach his form of a “bipartisan” agreement between the Republicans and his Democrats which would actually manage and reduce America’s deficit.
Things will get tougher from this point forward, both for the Obama Regime and for America. That might be a good thing in the long run though. Most wastrels won’t change until forced to do so.
Reflections From a Murky Pond