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S&P Cuts Outlook on US to Negative

Whitewing

Well-known member
http://www.cnbc.com/id/42643384

Standard & Poor's on Monday downgraded the outlook for the United States to negative, saying it believes there's a risk U.S. policymakers may not reach agreement on how to address the country's long-term fiscal pressures.

"Because the U.S. has, relative to its 'AAA' peers, what we consider to be very large budget deficits and rising government indebtedness and the path to addressing these is not clear to us, we have revised our outlook on the long-term rating to negative from stable," the agency said in a statement.

The S&P said the move signals there's at least a one-in-three likelihood that it could lower its long-term rating on the United States within two years.

The U.S. dollar fell broadly on word of the revision. Gold prices, meanwhile, hit a new record above $1,496 an ounce.

"The headline has enough of a shock value. The initial reaction is that this is negative for dollar assets across the board." said Lou Brien, a market strategist with DRW Trading in Chicago.
 

Whitewing

Well-known member
This is Bush's fault.

Speaking of Bush, I did a quick search....typed in "bust" for the political forum and OldWindBag for the poster.

3 pages of "Bush Bust" came up. :lol:

I'm waiting to see his first use of Barack Bust, Barry Bust, Obama Bust, etc. After all, he was very po'd about what Bush did to the economy so it only stands to reason that being the principled liberal that he is, he'll give Barry hell as well.

:roll:

Barack Obama, the gift that keeps on giving.
 

Steve

Well-known member
hypocritexposer said:
"Tax the Rich and those greedy corporations"

"When Clinton was President, we had a surplus"

they are taking credit for a good sustained growth period, one in which our economy outpaced obnoxious spending and was able to absorb the huge tax increase..

we do not have those conditions today...
annual-change-us-gdp-1977-2007.png

The effects of increasing taxes on Treasury receipts can be seen in the Clinton and Democrat-controlled congressional tax increase of 1993, one of the largest in history.

if you look closely at the line between 93-94 and 94-95 you will see an upward growth in 93' and a plunge in 94..

consider this.. if it caused a plunge in one of the strongest years of an economic boom... what it would do in a weak almost depression economy?

taxes may in the near term bring in more revenue.. but history has shown they slow growth, and over a short term , they then have a negative effect on revenue as individuals and corporations change their tax strategy.

add in federal increase in spending and you get the 2000-2001 recession.. another perfect case study in what not to do with a federal budget..
 

Whitewing

Well-known member
I actually saw some rich guy on Fox the other night who believes he's undertaxed. He trotted out the ole, "well, Bill Clinton raised taxes in 1993 and we had years of economic growth for years thereafter".

And the Fox talking head let the statement slide. Guess I shouldn't be surprised.
 

hypocritexposer

Well-known member
Whitewing said:
I actually saw some rich guy on Fox the other night who believes he's undertaxed. He trotted out the ole, "well, Bill Clinton raised taxes in 1993 and we had years of economic growth for years thereafter".

And the Fox talking head let the statement slide. Guess I shouldn't be surprised.

Yes, for some reason some people think 3-4% of taxes on personal income would make up for about 6% of GDP in spending.
 

Steve

Well-known member
understanding taxes,... and progressives.

progressives are far left liberal liberals.

our tax code is progressive.

it didn't help me understand either any better, but it sure explains why I don't like either one..
:shock:
 

Silver

Well-known member
In Canada it took a down grading of our credit rating about 15 yrs ago to shock our government into re thinking it's budget spending strategies. Hopefully something similar happens down there. If the US credit rating is down graded our dollar will likely drop, opening the door for the gov't to raise interest rates :?
 
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