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You Can Thank Obama for the Inevitable US Credit Default!

"I must raise your taxes to get me reelected!"“We’re at a point that the odds of having a downgrade make it pretty much inevitable. I see a downgrade as being inevitable."

Peter Cohan
July 25, 2011
Peter S. Cohan and Associates

Last night our beleaguered president foisted his way on to prime time TV and lied to the American people once again about the inevitable debt crisis -- that he created.

According to Obama, the downgrade of US debt can be avoided if the Congressional Tea Party Representatives simply ignore the will of the people who elected them and agree to raise taxes on job creators and believe his promise to make cuts he has never defined.

The Truth Hurts

With a few days left before the inevitable downgrade, it's worth taking a minute to review the key facts:

The Downgrade is a Virtual Certainty -- According to Dan Clifton, Head of Policy Research at Strategas, a downgrade will not be averted by Obama's tax increase and wishy washy future cuts. The only way to avoid a downgrade is with a debt limit increase that is accompanied by $4 trillion in specific cuts. Based on Obama's speech last night -- that ain't happening.
The Downgrade Was Avoidable -- John Boehner was willing to compromise by eliminating certain tax credits. Harry Reid agreed and the only reason this did not happen was Obama reneged on his earlier position and insisted on $400 billion more in tax increases.
Obama has not Negotiated in Good Faith -- If you've ever negotiated with someone who you vehemently disagree with, you know how tenuous it can be. All it takes is one case of "bad faith" actions and everything falls apart. Obama has done this multiple times in the debt limit negotiations. In addition to the double-cross mentioned above, Obama's whole act of dragging out the Repeal of the Bush Tax Cuts after agreeing to leave them in place in January in exchange for a 2nd Stimulus is also a flagrant act of Bad Faith. How can John Boehner trust this man?
Obama is The One Who's Playing Politics -- Obama keeps trying to sell himself as "the Adult in the Room" and the mediator between the House and Senate, but it's not true. Harry Reid, John Boehner, and Mitch McConnell have tentatively agreed more than once to short term deals that would have averted the impending debt crisis and it was Obama who insisted on a long term debt limit increase that would cover his reckless spending through the 2012 election. John Boehner and the Tea Party Congressmen are clearly risking political peril by fighting Obama's tax hikes. In fact, I have never seen republicans put their political careers on the line in the name of doing the right thing like they are right now. On the other hand, Obama's speech last night was pure liberal partisanship; demagoguing republicans and praising his own ill defined alternative.

The bottom line is clear; Obama wants everyone to believe that the debt crisis will go away if republicans agree to let him spend more and raise taxes during a recession. The problem is, anyone who understands reality knows this is not true -- particularly the credit rating experts at Standard and Poors and Moodys.

The "Good Ship USA" will hit an iceberg!

Dave

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You Can Thank Obama for the Inevitable US Credit Default!
Tuesday, 26 July 2011

Who Stole My Career?

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