Saturday, 6 August 2011
That being the latest score in the great American football game. Reading the S&P report on why they downgraded America the first (own) goal was the political process itself. In fact the overview emphasises, draws attention to and reiterates how the fucked up debt ceiling debate undermined their view of America:
“We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress … will remain a contentious and fitful process … 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.”
As the brinkmanship was driven by the Tea Party nutters, then that’s one up to the Democrats. However, that the plans were also perceived as not doing enough to cut spending is the Democrats fault, so that’s one all.
But, fiscal policy is also about raising revenues or as S&P put it “It appears that for now, new revenues have dropped down on the menu of policy options”, something that the Tea Party nutters made damn sure happened, so that’s another Democrat goal I reckon.
But, yeah, this is all crazy. Like for one thing a rating agency got it right for a change. For another, how deeply, politically incompetent are the Democrats, like didn’t they learn anything from the health care debacle? And is the probable response here of having a go at S&P, mealy mouthed references to no other agency downgrading them and not saying diddly about raising taxes going to have much effect? I mean jumping jehoshaphat, they're dealing with mentals so perhaps that should be drawn out a tad more. The main quote included here makes clear it’s the decision-making process that’s the primary issue i.e. the way the Tea Party Republican mentals are fucking up the working of the polity. Despite this the Republicans will completely ignore that (along with potential tax rises) so this can all get blamed on not cutting spending enough because, as has already been said, they are fucking mentals.
So now that the previously unthinkable has once again become the actual, Monday will be interesting in share price land, volatile to say the least as the uncertainty over what happens next, aided by the resumption of mental politicking in America, shits on confidence levels. The emphasis placed by S&P on the efficacy or otherwise of the decision-making process is an interesting point with regards to the Euro-zone while here the ConDems will make major big use of the downgrade to justify their policies. Cunts.