by Dan Mitchell
Posted Aug 8th 2011 at 12:53 pm
President Obama just spoke about the downgrade and his remarks were very disappointing. He uttered some empty platitudes, offered no plan, (amazingly) called for more government spending, and continued his advocacy of class-warfare taxation.
So what does this mean? Other than expecting volatility, I have no idea what will happen in financial markets over the next few days. But I can opine about the downgrade, Obama’s unserious response, and what it means in terms of public policy over the next few years and into the future.
Notwithstanding the President’s cavalier attitude, America is in trouble. But while the crisis is severe, we have some breathing room.
Our fiscal crisis is akin to a very dangerous, but slow-developing cancer. It is not a car wreck with immediate life-threatening injuries.
And there are solutions, as explained in this good news-bad news-bad news-bad news-good news-good news analysis.
1. There is virtually zero chance of the United States defaulting in the next 10 years (heck, probably the next 20 years). Yes, fiscal policy has been reckless and irresponsible during the Bush-Obama spending binge, but I’m guessing it will take another 10-20 years of additional over-spending to bring America to the point of Greek-style collapse. Simply stated, the U.S. economy is so large and so rich that it can’t be destroyed quickly.
August 8, 2011 | Categories: 2012 Election, Agency Regulation, America's Freedoms, Balanced Budget, Corruption in Government, Economic Security, Election 2012, Elections Politics, Federal Reserve Bank, Fiscal Responsibility, Foreign Insurrection, Foreign Policy, Freedom Justice and Liberty, Government, Healthcare, Liberal Scare Tactics, Liberals Big Spending and Taxes, Media Corruption, Most Americans Reject Socialism, National Debt, National Security, New Media News, Politics, POTUS Elibility Issue, Propaganda, Radical Liberal Progressive Left, Smaller Government, Value of the Dollar | Tags: Class Warfare, debt limit, deficits, failed response, fixing America's spending crisis, inflation, National Debt, Obama, obama is a failure, on downgrade and outlook, talking down to Americans, Taxation, teleprompter platitude | 1 Comment »