Sunday, August 7, 2011

Ron Paul on the S&P downgrade

Congressman Ron Paul (R-TX) issued a statement early Saturday. In part, it says:   

“We have just learned that for the first time in our history, the United States’ top credit rating has been downgraded by credit rating agency S&P.
“We were told by proponents of increasing the debt ceiling that a credit downgrade would come if we didn’t raise the limit, but the opposite was true.
“The ratings agencies had been warning us for some time that it is imperative upon the U.S. government to get its fiscal house in order and tackle its debt and deficit problem by taking serious steps.
“Unfortunately, the game in Washington has been one of partisan blaming and bipartisan out-of-control spending.
“America has been dealing with this severe economic crisis for years because the Washington establishment failed to focus on the true issues at hand: a declining dollar and out-of-control spending.
Paul's statement can be read here in its entirety.

Ron Paul saw back in April that a credit downgrade was on the way. He went on the record with his assessment. At the same time, Treasury Secretary Tim Geithner was saying it wouldn't happen.

Which of the two now has more credibility?

Meanwhile, S&P signals another downgrade is possible in the next two years. 

Hang on folks. We're in uncharted waters. And the waves are kickin' up. The storm we saw from afar is no longer on the horizon. It's overtaking us.

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