"It’s hard to read the S&P analysis as anything other than blast at Republicans." (National Journal)

[jefferson_dem]

Why S&P’s Downgrade is No Joke
The real impact of S&P’s downgrade is political, not economic.
By Edmund L. Andrews

<SNIP>

S&P was remarkably blunt that its downgrade was mostly about heightened political risks: “The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed,” it said.

“The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year’s wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently.”

To be sure, S&P didn’t specifically single out Republicans. It criticized the overall $2.4 trillion deal as too limited, and it implicitly criticized both political parties for refusing to tackle their sacred cows – entitlements, in the case of Democrats; tax increases in the case of Republicans.

But it’s hard to read the S&P analysis as anything other than a blast at Republicans. In denouncing the threat of default as a “bargaining chip,” the agency was saying that the GOP strategy had shaken its confidence. Though S&P didn’t mention it, the agency must have been unnerved by the number of Republicans who insisted that it would be fine to blow through the debt ceiling and provoke a default.

<SNIP>

http://www.nationaljournal.com/economy/why-s-p-s-downgrade-is-no-joke-20110806?page=1

[wake.up.america]

1. Yep, it is very diconserting to realise that the loonies from the right have anything to do...

to do with establishing US monetary policy.

[SpiralHawk]

2. "But, but, but, um, The Clenis, um, made us do it. Smirk." - Republicons

Two things Americans know for sure about Republicons: they don't do honesty, and they don't do responsibility. They are always ready to blame others for there Boehners.

[libodem]

5. Yes

It's about time someone dragged Clinton's penis into the discussion of whom to blame. Boner and Weiner and Clinis , oh my.

[BumRushDaShow]

3. " To be sure, S&P didn’t specifically single out Republicans"

Oh but they did - in reference to what they term their "base case" (where they apparently definite things as they see them in the "now" and then project that into future).

From the report:

Compared with previous projections, our revised base case scenario now
assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012,
remain in place. We have changed our assumption on this because the majority
of Republicans in Congress continue to resist any measure that would raise
revenues, a position we believe Congress reinforced by passing the act.

Meaning that pre-AA+ downgrade, their "base case" assumed that the tax cuts would expire in 2012, but due to apparent, unrelenting teabagger lunacy, they had to change their "base case" to show the country would instead go off the cliff because the repukes can't control their nasty vermin trolls.

[Tennessee Gal]

4. Very valid point. nt