America In Decline – It’s Now Official

Via As A Mom

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America In Decline – It’s Now Official

After the markets closed on Friday, Standard & Poor’s made the widely expected and appropriate announcement that they were lowering the credit rating of the United States to AA+ and sustained its negative future outlook.

No big surprise. If my family had an income of $100,000 and spent $142,000 year after year, borrowing the difference, I wouldn’t expect to maintain an 820 credit score. Pretty basic stuff. And if the credit agencies had the manpower to monitor my wife and me and surmised that my income stream outlook was at best flat, that we had no intention of moderating our spending or borrowing, and had a few kids ready to enter college in the near term, that credit bureau would shred every credit card I possessed.

That’s where the U.S. is today. Growth in GDP is essentially flat, spending continues on the rise, and ‘the college bound kids’ are the baby boomers retiring and entering the Medicare and Social Security rolls at a 10,000 a day clip.

So S&P looked at the landscape and said the U.S. is less credit worthy. Duh. And that AA+ won’t last long – future downgrades will be in the offing unless the fiscal policy gridlock breaks. I don’t see that happening anytime before the seating of the 45th president in January 2013 – I hope I’m wrong.

Unprecedented has become an all too familiar word in the past few years. Unprecedented spending, debt, bailouts, regulations, market interventions – you name it, we’ve done it. If you developed a road map showing you how to crash an economy, stranglehold business, and dishearten a people, we have followed it at every turn. Read more…

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8 Responses to America In Decline – It’s Now Official

  1. bydesign001 says:

    Excellent post Bob. Yes it is true, we are now a banana republic or close to it.

    • boudicabpi says:

      If a banana republic would we at least have banana’s? Getting tough here and tougher all the time, while Obumble parties, vacations and golfs. WTF?
      Bob A.

  2. Freedom, by the way says:

    The other shoe will drop–and soon. Woe to borrowers who already are having tough times getting money from banks. Wait until interest rates go up and up. Our economy is poised for a spiral downward. Thank you, Washington.

  3. Bob Mack says:

    I received this via yesterday’s e-mail:

    2011 Federal Budget Deal
    Federal Budget: $3,820,000,000,000 (3.82 Trillion)
    Income: $2,170,000,000,000 (2.17 Trillion)
    New Debt: $1,650,000,000,000 (1.65 Trillion)
    Amount Cut: $38,500,000,000 (38.5 Billion) – about 1% of the total budget.

    Harry Reid is calling this a “historic amount“. The President said it is a “historic deal”. John Boehner simply said, “We’ve come to an agreement”. Let’s Put This In Perspective. It helps me to think about these numbers in terms that I can relate to. Let’s remove nine zeroes from those numbers and pretend this is a monthly household budget for the fictitious Jones family:

    Amount of money the Jones family spent this month: $3,820

    Total income for the Jones family this month: $2,170

    Amount of new debt added to the credit card this month: $1,650

    Outstanding balance on the credit card: $14,271 (This represents our national debt).

    So last week, the Jones’s sat down at the kitchen table and agreed to cut $38.50 from their monthly budget. A historic amount!

    R U Impressed?
    Me neither!!!!

  4. Pingback: America In Decline – It’s Now Official (via Boudica BPI Weblog) | My Blog

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