US needs to be less corrupt to get their AAA rating back.

The US credit rating deserves to be downgraded again and again and then again. No budget proposals, increasingly larger deficits, no real cuts, no way to pay off the debt, large trade deficit, and anyone paying attention to the numbers can see that the unfunded liabilities will skyrocket debt and therefore inflation (and/or taxes) in the not too distant future. In fact, not downgrading would be irresponsible. The typical response is "yes but they have a printing press, so they will always be able to pay" correct, but as a lender do you want to keep your purchasing power or lose a large part of the value of your money to inflation? Not to mention the possibility of a currency crisis.

Unfortunately discussions like this tend to become a 'my favorite political party vs your favorite political party' instead of being a rational discussion about the facts.
 
The problem with the current system is the real cuts which need to happen, wont happen because it will lose the current party voters.

Mainly, its the rediculous benefits / welfare system we have which is so bloated and costs the government 200 BILLION a year (incidentally, if the uk cut its benefits system completely we would actually have a yearly financial surplus to start paying off this debt). Whilst I support the use of benefits for people who genuinely need them, we also have a massive burden of people who just exploit the system and give nothing back.
 
Most of the entire world believe the US is not collecting enough taxes .. like Greece.
Taxation in the US is down significantly from pre-Bush.
Spending needs cuts as well ... defense, health.

The Republicans are probably not going to control the Presidency or the Senate for a LONG time. I'm not sure about how realistic it would be for the Democrats to take the House ... I'll have to look into it. (People have told me it's not likely).

dutchbb said:
The US credit rating deserves to be downgraded again and again and then again.
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That would be bad. 2 or 3 years of political instability could trigger another downgrade.
 
It's not just the US though... they're just the biggest issue. UK just got smacked, and other countries are quickly racking up more debt. The problem is simply... countries need to do it tough for a few years and stop borrowing more than they earn. That is the crux of the issue. Consumers need to suck it up for a couple of years in each country and allow the Governments to reduce / pay-off a good majority of their debts quickly, thus lessening the pain. Less demands, more living with the realistic aspects that Governments need to balance their spending just like we do in our household weekly budgets.
 
Digital Doctor said:
Most of the entire world believe the US is not collecting enough taxes .. like Greece.
Taxation in the US is down significantly from pre-Bush.
Spending needs cuts as well ... defense, health.

The Republicans are probably not going to control the Presidency or the Senate for a LONG time. I'm not sure about how realistic it would be for the Democrats to take the House ... I'll have to look into it. (People have told me it's not likely).



That would be bad. 2 or 3 years of political instability could trigger another downgrade.
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I think you fail to understand the ebb and flow of party politics. Also, America already has the highest corporate tax rate compared to all other countries in the world. The more you raise it, the less incentive companies have to come here; that hurts our economy and decreases available jobs. The solution is not more taxes. The solution is more tax payers.
 
The credit rating companies such as Standard and Poor annouce new ratings on entities that most of the time appear after the fact that warrented the rating drop. how about dropping the credit ratings of washington mutal in 2007?

Sam Baitz
ceo
shieldfunding.com
 
Slavik said:
The problem with the current system is the real cuts which need to happen, wont happen because it will lose the current party voters.

Mainly, its the rediculous benefits / welfare system we have which is so bloated and costs the government 200 BILLION a year (incidentally, if the uk cut its benefits system completely we would actually have a yearly financial surplus to start paying off this debt). Whilst I support the use of benefits for people who genuinely need them, we also have a massive burden of people who just exploit the system and give nothing back.
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I was watching a program on the beeb the other day and what shocked me was out of that 200 billion only about 10% goes to unemployment benefits, then rest is spent on pensioners etc.
 
I see American Politicians (mostly the GOP) are working hard to get American debt *further* downgraded.

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America needs a new political system.
The endless checks and balances are not conducive to politics in the 21st century.
 
Both The Senate & The President and a little under 1/2 of The House tried to push an approved budget. But The GOP kept attacking The Affordable Healthcare Act.
 
Adam Howard said:
Both The Senate & The President and a little under 1/2 of The House tried to push an approved budget. But The GOP kept attacking The Affordable Healthcare Act.
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I do so love how they called the the highlighted name. I know several folks that are going to have to end up paying much more than they are now (they are healthy young adults and have no comparable plan on the AHA. Once is jumping from around $43 a month to better than $125 from what he understood. Quite a jump - but it's not going to kill him as he makes enough to afford it but in the last 2 years he's been to the Doctor 3 times. Of course, that's the type the government is counting on to make their plan "affordable" for everybody else. :rolleyes:
Another company locally has told their employ's that they will no longer have company provided health benefits - they can obtain their healthcare in the marketplace. They will not be getting any help from the business either to off-set the cost. The owner and his accountant sat down and ran the numbers and figured it would be cheaper for them to pay the penalty.
It's going to be very interesting to watch if this works out OK, or if it becomes a (typical) government train wreck.
 
Do you remember last year when they almost shut down because they could not decided how to save a billion dollars? I mean, we spend trillions all the time, but they almost came to this point last year over saving a billion.

Ironically, we're saving almost a billion dollars a day, right now and all the government had to do was to fail at their job. And during this whole time they're still getting paid and we're still paying taxes.

What a backward system, eh?
 
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