Monday, August 01, 2011

Obama says Deal?

On Sunday July 31, 2011, president Barry Hussein Soetoro announced that Congress has come to terms preventing the United States from defaulting on its debts. Although Congress hasn’t voted on anything yet the president, it seems, couldn’t wait to rush to the podium with the good news. (see 4:13min video)

Following is a Speaker of the House John Boehner’s apparent successful PowerPoint presentation given to his Republican caucus.

3 7-31-11 Debt Framework Boehner

Blogger Chris Cillizza sees this agreement as a win for America. (see story)

"Reductions of the magnitude now being proposed, if adopted, would likely lead Moody's to adopt a negative outlook on the AAA rating," the credit rating agency said in a new report. "The chances of a significant improvement in the long-term credit profile of the government coming from deficit reductions of the magnitude proposed in either plan are not high."-- Peter Schroeder

Moody's Investors Service sees the agreement as too little too late. Not enough cuts. $2.2 trillion dollars according to Associated Press over 10years doesn’t realistically keep pace with U.S. spending. (see story)

Remember Democrats want compromise, which means they want business as usual, meaning in this case that Democrats want spending to continue as usual.

According to Moody, this deal may be enough to give the illusion of success for politicians however; the reality is this deal may not be enough to keep the U.S. AAA credit rating.

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