Downgrade of credit worthiness - will it embarass America enough for change?
S & P did the unthinkable, America falls from AAA to AA+, and besides what it should do to interest rates, will Americans put the credit card away? Is it bye bye to Obama Care? by Mark Vogl
(conservative)
Saturday, August 6, 2011
I believe passage of Obama Care was as much about competitive economics and globalism as it was about the "right of health care to all." But those who pushed health care on the United States did not understand the economic and fiscal condition of the nation, or the ballooning government expenditures. Instead they saw an economic reality; US industry carried health care costs other nations' industries did not, and it put our companies at a disadvantage. In other nations health care coverage was paid the government, and how that government coverage was financed could be spread over many, the private sector companies did NOT carry the full load. Individual taxes greatly supplemented the taxes of industry.
On the US domestic front, the health care industry looked for ways to increase and stabilize its revenue stream. Like teachers who are paid through a variety of taxes, doctors and medical care leaders wanted to shore up the system which paid their exorbitant salaries and financed the best health care system in the world. Health insurance had worked to some degree, but the potential market was broader and bigger if health care were assumed a right and the government paid it. No one really considered the other big fish in the government barrel; defense, entitlements, debt payments, and education. None of those big fish could easily be shrunk, and so if you are going to add health care, fully one sixth of the US economy to the government trough much more revenue in the form of taxes would be needed.
But American politics over the past half century has learned that raising taxes results in incumbent defeats. Not all, that's for sure, but enough that it makes elected representatives hesitant to vote for tax increases. And thus we have America Today, a nation that learned from its teenage children, buy now on credit, let someone else worry about the bill.
The debate over the raising of the national debt ceiling brought the America Today phenomenon into clear focus. The light was on it, a blinding light, that showed everyone America's present course was unsustainable and leading to financial collapse. Secession movements' mouths watered as they realized that the leaders of the United States were doing what they could not, making a real case for secession. President Obama's classroom theories and policies weren't even adding up on the classroom blackboards (sorry they don’t have those anymore.). The liberals in their dominance didn't worry 'bout the numbers adding up, they had the power and they were going to use it.
Of the many policy differences between the right and left, the balanced budget is one of the most feared by the left. A balanced budget philosophy requires immediate revenues to pay for immediate spending. No American, whether they are a government worker, a welfare mother, a small business man or tens of millions of employed Americans across the nation want to pay more in taxes. It’s in the genetic code of Americans, Boston Harbor and the Tea Party, we don't like taxes. And so, the DC politicians, out of self-survival modes, have adopted spending and deferred taxation. End result; 14.5 trillion in national debt, with another 2.5 trillion just added for Obama's Presidency!
S & P says this can't go on. About time. Where were you all when the corporate world collapsed, when the housing market disintegrated, and when Barney Frank and the other criminals misused federal monies to give houses to those who don't earn enough? I know human failing and sin is spread evenly,... we all have it, we all do it. Which is why our salvation is in Christ and not us.
The S & P's belated action should help continue to focus our attention on the need to reign in American government. Maybe. Americans are a stubborn lot. Throughout history Americans have broken down barriers, done things other people could not, or would not. Elections of the failed have occurred, or been very close. So despite Obama's complete failure across a broad front, it is not unthinkable that he could win. And the secessionist movements’ mouths start watering again!
The argument about America's course is spot on for the 2012 election. But will we get that debate? Not with Mitt Romney (the FOX favorite) or even Rick Perry, the unannounced candidate. The only Americans out there who are offering a real alternative is Sarah Palin, Michelle Bachman and Ron Paul. Newt is a globalist and as much as I admire his intellect, his knowledge of history, and his knowledge of governance he has sold out. The rookies, Rubio and Chritie and the rest are to inexperienced (like Obama) and too unknown with respect to what they really believe (like Obama) to be even considered. We have the leaders, they are self-evident ( a great founding fathers' term ) in Palin, Bachman and Paul.
The credit rating has been lowered. Like an awful accident to a beautiful structure on Main Street, USA, the credit rating downfall will be an obvious embarrassment until it is lifted. If they had acted years ago, maybe we wouldn't be here, but who knows. As I said earlier, Americas are a stubborn lot. .
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do not represent the views of Nolan Chart, LLC or its affiliates.
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