For the first time in our nation's modern economic history America's debt rating has been downgraded from AAA. We held that supreme debt rating since 1917, through four wars, a Great Depression, a long Cold War and through every economic downturn we've ever experienced.
How did this happen?
Well, for the last ten years we've been spending twice as much as our income. Imagine you are holding a credit card; your annual income is $60,000 per year but you keep charging $100,000 dollars on your credit card every year. It wouldn't take long for those VISA folks to freeze your account and kill your spending habits dead in their tracks.
Not so, Uncle Sam. I wrote an earlier blog called "The One", referring to Obama's supreme ignorance of the rules of economics and the rules of business. That essay was written in January of 2009, right after Obama was inaugerated. The telling point in that essay is that China and Japan and our other bankers would call in their loans, citing the federal government's huge give-away programs and failure to manage their debt.
When Obamacare was shoved down our throats businesses began anticipating the enonormous burden of health care regulations and began to lay off employees and refused to hire anyone.
When the Obama/Reid/Pelosi regime shoved the pork-laden trillion dollar stimulous bill on us, some of us knew that building rat preserves in Pelosi's San Francisco and water parks in Obama's Chicago would not pull us out of recession. They wasted a trillion dollars, failed to revive the economy and only drove our national debt higher.
When the housing market tanked because 30 percent of Amercians bought houses they couldn't afford the Dems sympathized with the deadbeats who refused to pay their mortgage or couldn't pay their mortgage because they lost their jobs (again, thanks to Obamacare and liberal regulation) . Due to the Dem's interference into the free markets the housing market couldn't settle and then recover. Housing experts are predicting another 2 million foreclosures over the next 12 months!
Bush was only slightly better; his silly Mid-East wars have cost us a trillion dollars and his lack of spending restraint loaded $4 trillion dollars to the national debt. Obama went Bush one better and racked up $6 trillion dollars in less than three years and passed legislation that adds another $10 trillion over the next decade!
When Obama took office the unemployment rate was 5.4 percent. It is now 9.1 percent because Obama and Reid and Pelosi and old Barney Frank scare the hell out of business! Just this morning Fannie Mae, who Barney Frank managed for the last five years, just announced they again lost billions and needed taxpayer money to bail them out!
So, America's FICO score just took a nosedive. Who's going to be hurt? Not Obama or Pelosi, or Reid, or Barney Frank...nope, it's you! Get ready for higher mortgage interest rates, higher student loan rates and higher car loan rates. But those are small time! The interest on our national debt just went up! Get ready to fork over more of your taxes to pay for it!
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