Boston Herald: Standard & Poor’s downgrade of the nation’s credit rating gives House Budget Committee Chairman Paul Ryan every right to say “I told you so.”

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    Aug 07, 2011 3:37 PM GMT
    http://www.bostonherald.com/news/opinion/editorials/view.bg?articleid=1356933

    Rep. Ryan’s warning

    Standard & Poor’s downgrade of the nation’s credit rating gives House Budget Committee Chairman Paul Ryan every right to say “I told you so.”

    Even earlier this week when President Obama was taking his victory lap for the debt-ceiling compromise, Ryan was disclosing the cold, hard truths of the economic troubles that lie ahead — truths that a jittery Wall Street has been more than aware of.

    In an oped column in Wednesday’s Wall Street Journal, the Wisconsin Republican reiterated, of course, that the president really has no budget plan.

    “The president’s February budget,” he wrote, “deliberately dodged the tough choices necessary to confront the threat of runaway federal spending. It was rejected unanimously in a Senate controlled by his own party.”

    Well, so much for that auspicious beginning.

    The president knew then and knows now that his health care and welfare state agenda demand new and higher taxes, that the costs of Medicare and Medicaid will continue to rise at unsustainable levels and that he has no plan for dealing with that.

    In fact, when presented with options by his own debt commission appointees, Obama continued to be in denial.

    Not so, Ryan. And he has a lot of help in the truth-telling department from the Congressional Budget Office, whose numbers he cites in the Journal oped.

    “The CBO’s latest Long Term Outlook in June estimated that total tax revenues would have to double by mid-century in order to finance our current spending path,” Ryan wrote. Yes, DOUBLE.

    Health-care costs, which rose 8 percent this year and are projected to rise anther 8.5 percent in 2012, are leading the pack.

    Democrats have done a great job of demagoguing the Medicare issue in particular and Ryan’s proposals for putting it a more stable path, but they haven’t come up with a solution. He urged Democrats to “give the American people the debate they deserve.”

    And with S&P breathing down the nation’s neck, isn’t it about time!
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    Aug 07, 2011 4:11 PM GMT
    riddler78 said... He urged Democrats to “give the American people the debate they deserve.” ...

    We will certainly have that debate. It will take the form of the 2012 election campaigns. The $1 Billion that Obama plans to raise in full campaign mode, already underway, will not be enough to hide the facts or the misery of millions. 2012 is too far away, and the damages will continue, but the public made a choice in 2008. We are stuck with it for now, but on the bright side, most have wised up and will no longer vote based on empty words, slogans, or religious type oratory skills.
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    Aug 07, 2011 4:33 PM GMT
    After proving themselves completely unreliable and in the pockets of the banks, why would anyone take what S&P says seriously?

    Frankly, I think they should be put out of business along with Moody's.
  • CuriousJockAZ

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    Aug 07, 2011 5:12 PM GMT
    Personally, in the end I think the downgrade will prove a good thing.
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    Aug 07, 2011 5:16 PM GMT
    socalfitness said
    riddler78 said... He urged Democrats to “give the American people the debate they deserve.” ...

    We will certainly have that debate. It will take the form of the 2012 election campaigns. The $1 Billion that Obama plans to raise in full campaign mode, already underway, will not be enough to hide the facts or the misery of millions. 2012 is too far away, and the damages will continue, but the public made a choice in 2008. We are stuck with it for now, but on the bright side, most have wised up and will no longer vote based on empty words, slogans, or religious type oratory skills.


    2012 should be interesting. I've heard the argument made that the debt deal is somewhat ideal relative to the possible outcomes. The left is disillusioned that somehow Obama gave into the demands, and tea partiers are not so much disillusioned but angry and fired up - and it will be the latter who will show up to vote.

    This deal had better be only the beginning though - much more cutting particularly reform to both Social Security and Medicare will have to happen. Look to see how the markets take it starting around 4-5 pm EST when Asian markets starting opening and where interest rates and the US dollar will fall.
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    Aug 07, 2011 5:18 PM GMT
    CuriousJockAZ saidPersonally, in the end I think the downgrade will prove a good thing.


    Only if it results in reform. The problem is that you still have a lot of people who claim that there isn't a problem with things like Social Security that it's "fully funded" and "solvent" irrespective of the fact that it's not truly funded. Da-nile isn't just a river in Egypt.