So Obama's plan would have prevented S&P's downgrade saving the US billions, but it was rejected by the Teahadist's in congress.
Aren't the Tea Party doing wonders for America?
The push for a new global currency will now take place at a much faster pace, thanks again to the Tea Party.
"Cut deficits by $4 trillion over 12 years: That's two years longer than what his debt commission's recommendations would achieve.
But like the commission, the White House estimates that spending would account for the bulk of deficit reduction. Obama says he wants $3 in spending cuts for every $1 in additional tax revenue."
"The dramatic reversal of fortune for the world's largest economy means that US treasuries, once seen as the safest investment in the world, are now rated lower than bonds issued by countries such as the UK, Germany or France. The move is likely to raise borrowing costs for the US government, companies and consumers.
China, the world's largest holder of US debt, condemned the "short-sighted" political wrangling in the US and said the world needed a new and stable global reserve currency.
In a comment article the official Xinhua news agency said China had "every right now to demand the United States address its structural debt problems and ensure the safety of China's dollar assets. International supervision over the issue of US dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country."