Originally Posted by Hands Sandon
Default certainly was a possibility. If no deal was made from what I've read and heard the US had maybe two weeks or so before it would have defaulted. If you have proof to the contrary please post it.
The Dems wanted new revenues and cuts, the Teapubs just wanted cuts. The Teapubs needed to give more on new revenues given the dems majority in the senate and presidency and they didn't, so we have a downgrade. They stuck to their guns, and shot America in the foot.
I maintain that most people on the left have no idea how an economy works, and should never be called on to run one.
The credit downgrade had NOTHING TO DO with the Tea Party. Nothing.
International rating agencies do not get scared of political bickering.
They do not downgrade countries based on the 'tone' of their political discourse. This talking point is simply nonsense.
The left has spent years ensuring that half the country does not pay a dime in taxes and expects the shortfall to be made up by "ultra-rich" people who do not exist.
This is unsustainable, and everybody (including S&P) knows it.
As I have said before, America is being setup by its elites (left & right) for the introduction of a national VAT.
It is a tax the poorer classes cannot dodge, allows for internet taxation and is the only way the country will ever be able to pay its bills.
Leftist elites like its ability to generate vast sums of money for government spending.
Rightist elites like it because it moves the tax burdens to individuals and away from corporations.
Downgrade, introduction of VAT and credit upgraded a decade later. Canada has already been there.