“But if the watchman see the sword come, and blow not the trumpet, and the people be not warned;

if the sword come, and take any person from among them, he is taken away in his iniquity;

but his blood will I require at the watchman's hand."

Ezekiel 33:6


"A righteous man falling down before the wicked is as a troubled fountain, and a corrupt spring."

Proverbs 25:26

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

America’s Economy is at Risk Because of The Democratic Party, because ‘If it wasn't for the Tea Party We'd be rated Triple B’



The Standard & Poor’s (S&P) downgrade of America’s prized AAA credit rating is a defining moment in U.S. economic history. This has never happened before and the nation was able to keep its AAA rating even during the Great Depression. Moody’s and Fitch could now follow S&P in downgrading America. In the same 24 hours our nation achieved the highest food stamp level (45.8 million), and the lowest credit rating in history.
  • If the downgrade is not reversed it will mean another $1 trillion in additional interest charges for the next decade. The downgrade will last for at least 6 to 24 months, and there is a real possibility of additional  downgrades. Five governments have regained their AAA ratings but it took them between 9 and 18 years.
This downgrade was easy to avoid, and it is wrong to blame both political parties.  The responsibility for this massive failure belongs to the Democrats.
The Obama administration added $4 trillion to the debt in two years. This included the initial $940 billion price tag of ObamaCare and the $862 billion stimulus. The result is the biggest tax and spend government in American history.
At no point during the next decade will the budget be in balance.
  • In February the President submitted a $3.7 trillion budget plan with a $1.5 trillion deficit. The budget had no deficit reduction, and was so fiscally irresponsible it was rejected in the Senate by a 97-0 vote.
  • S&P wanted a $4 trillion deficit reduction, but Democrats offered no reduction in their original proposal. Every Republican voted against this "clean" debt ceiling plan.
  • Republicans refused all attempts to raise taxes, and Democrats are now saying this is the reason for the downgrade. S&P took no position on tax hikes. They just called for $4 trillion in reductions which could easily have come out of existing programs. 
  • S&P did call for entitlement reform which has been the GOP's main message. Democrats have refused to consider it. Their campaign to "Save Social Security and Medicare" was the focal point of their triumphant 2006 return to power, when not one Democrat was defeated. They denounced Bush's proposed reforms and said there was no problem. They used the same tactics against the Ryan plan. 
  • Over 90% of the experience of Obama cabinet members is from the public sector, which is a sharp contrast with the past. Perhaps this explains why they advocated the huge stimulus plan focusing on hand outs to government agencies.
  • Virtually nothing went to spur growth, investment and employment in the private economy. The stimulus could have resulted in the creation of millions of new jobs, but the GOP and the private sector were not consulted.
  • President Obama is now saying: "I don't think there's a sense I've been successful." We agree with the response of former Sen. Fred Thompson (R-TN): "That's true, and I believe that sense is called 'common'". The President has repeatedly tried to shift the agenda, but as James Carville once noted, "It's the economy, stupid!" 
REPUBLICANS HAVE BEEN RESPONSIBLE
Once again, S&P wanted $4 trillion in cuts, not the $2.5 trillion that was just approved. Republicans always advocated bigger cuts, but the major proposal from Democrats has been job destroying tax cuts. Their other recommendation was a veteran Democratic Party solution, take money away from Social Security, and kick the can down the road.
One of the first things the House GOP did when it regained power in January was to repeal ObamaCare. They also passed $6.2 trillion in cuts as part of the Ryan plan, as well as a balanced budget amendment.
The GOP even passed a budget, which has not been seen on Capitol Hill in a long time. During the negotiations with Vice President Biden, the GOP offered to enact all of the non-defense cuts which had been recommended by Obama's deficit commission.
STORM WARNINGS
House Speaker John Boehner wanted a $6.2 trillion cut but was willing to compromise on an initial $4 trillion cut with no tax hake. In seeking this deal in May he said "if we don't act boldly now, the markets will act for us very soon." Boehner wanted to move quickly because the storm warnings were so apparent. Unfortunately President Obama would not agree to the $4 trillion reduction. 
  • Six months ago S&P warned the United States there was a 50% chance of a downgrade. S&P officials said the recommendations of Obama's deficit commission were a step in the right direction. Unfortunately the President rejected all of them.
  • In its downgrade statement, S&P criticized the recent debt ceiling agreement which contained “only minor policy changes on Medicare and little change in other entitlements, the containment of which we and most other independent observers regard as key to long-term fiscal sustainability.” Once again, for three decades Democrats have refused all attempts to reform entitlements. 
  • The People's Republic of China (PRC) has a Communist government but for the past year even they have been giving the Obama administration lectures in fiscal responsibility. The PRC is America's largest creditor, and holds $1.2 trillion of US debt.
  • In an official statement, China said the United States must "live within its means. The US government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone."
  • The International Monetary Fund also warned the United States. The IMF report outlined the explosion of spending by the Obama administration, and said America's national debt would soon reach 100% of GDP.
  • The IMF report raised excellent questions regarding the costs of ObamaCare. The IMF was highly skeptical of Obama administration claims that health care reform would reduce the deficit.
The IMF warned of dire fiscal problems for America. The U.S. will have to reduce its structural deficit by a staggering 12% of GDP. The crisis which is now occurring in Greece only involves a 9% reduction. According to the IMF, America is the number two nation in need of major deficit reduction, while Japan has the top stop.
WHAT ELSE DID THE DEMOCRATS DO?
America had to cope with a Democratic Congress for four years, and Democrats still have control of the Senate and White House. Despite huge majorities in both houses, they failed to pass a budget nor were they able to enact any of the 12 appropriations bills. This was the first time since passage of the 1974 Budget Act that this occurred.
When Democrats took power in January of 2007, they spoke of fiscal responsibility. They deserve credit for passing Pay-Go (pay as you go legislation), and then they failed to adhere to it even once. It was waived every single time. Pay-Go was the top legislative objective of the moderate Blue Dogs, and they appeared to be genuinely stunned when it was ignored. Now 28 of them are no longer in Congress, the Blue Dogs have been cut in half and their Democratic Leadership Council is out of business.
The failure to pass a budget or an appropriations bill happened even though Democrats had a super majority which gave them complete control of everything. They had a 77-seat majority in the House, and in the 110th Congress they had a 60 to 40 margin in the Senate.
For the last 831 days, the Senate Democratic plan has to been to hide the budget from voters. The only thing they will agree to is another continuing resolution. They will not agree to a budget because it would confirm the exploding costs of ObamaCare.
During the Pelosi era, the GOP was presented with legislation such as the $1.2 trillion omnibus spending bill. It was never debated, released late at night and a surprise vote was schedule early the next day. The omnibus was 18 inches high, and this was from the Democratic Congress that promised us full transparency.
DON’T BLAME BUSH
Liberals are now trying to blame the AAA Downgrade on spending related to the wars in Iraq and Afghanistan, the prescription drug benefit and Hurricane Katrina. They did cost a lot of money, but they did not cause the annual deficits which resulted in the downgrade.
The deficit was only $161 billion when Democrats took power in January of 2007. The Congressional Budget Office's projections from January of 2008, the last ones made before it recognized the housing bubble and the implications of its collapse, showed a deficit of just $198 billion for 2009. The Bush deficits were relatively modest until the housing collapse and the global recession of 2008. During his final two years, Bush also was confronted with a Democratic Congress.
Bush didn't always succeed but he worked diligently on efforts such as reforming entitlement programs and trying to regulate Fannie Mae and Freddie Mac. It would have been far better for the nation if Bush's reforms had been enacted.
During the last campaign critics said Bush’s TARP program would lose $700 billion. Now it has made a profit. Taxpayers will not lose anything, and we avoided another great depression.  
Bush came to office in a recession and left with a recession, but the Bush tax cuts rescued the economy and provided the nation with low unemployment, low inflation, and continued growth for 5½ straight years. The Dow Jones reached an all time high, and the tax cuts got America out of the dot com recession.
According to the CBO, the Bush tax cuts increased revenue brought into the federal government by 37% over projections from the time they were enacted in 2003 to 2006. In 2007, the CBO stated tax receipts were 11% over projected revenue.
Bush's average spending-to-GDP (19.6%) compares to Bill Clinton (19.8%), George H.W. Bush (21.9%), and Reagan (22.4%). It also shows that his deficit-to-GDP was 2%—half that of Bush 41 and Reagan.
Deficits under Bush, as a percentage of GDP, were lower than the average over the past 30 years. Why weren't even more jobs created on Bush's watch? Because unemployment was at 4.5% for the majority of his administration. Economists consider a 5% rate full employment. It was a rate that had not been seen since the 1950's.   

Most Americans recognize the initials AAA as a place to call when their car breaks down. AA is known as a place to treat an addiction. Perhaps the S&P downgrade will have some beneficial impact. It might finally force liberal Democratic lawmakers into economic rehab. Perhaps some of them will realize deficit reduction cannot wait, American can no longer kick the can down the road, and it is time to be serious about entitlement reform. 



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Rick Santelli — the man whose speech on stimulus and bailouts in February 2009 is credited with helping launch the Tea Party — was fired up in this morning about the lack of leadership in the White House and all the political wrangling around what is really a simple problem- the government spends too much money.
During the CNBC segment, Santelli ripped into the “blame Bush, blame the sun” culture currently on display in the White House. He said it’s clear “we all know deep inside no country is the same it was five years ago,” and as for stocks going down, “we’re already Ralph Cramden on thin ice, now an infant’s jumped onto our shoulders.”
More than anything else, Santelli was livid about the political accusations that the Tea Party is to blame for the U.S. credit downgrade. Quite to the Contrary, Santelli said, “If it wasn’t for the Tea Party, we’d have been rated triple B.”
The Santelli portion starts around 3:10 into the clip below, courtesy of CNBC:

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