Downgrading America

Robert Samuelson:

When historians recount the momentous events of recent weeks, they will note a curious coincidence. On March 15, Moody’s Investors Service — the bond rating agency — published a paper warning that the exploding U.S. government debt could cause a downgrade of Treasury bonds. Just six days later, the House of Representatives passed President Obama’s health care legislation costing $900 billion or so over a decade and worsening an already-bleak budget outlook.

Should the United States someday suffer a budget crisis, it will be hard not to conclude that Obama and his allies sowed the seeds, because they ignored conspicuous warnings. A further irony will not escape historians. For two years, Obama and members of Congress have angrily blamed the shortsightedness and selfishness of bankers and rating agencies for causing the recent financial crisis. The president and his supporters, the historians will note, were equally shortsighted and self-centered — though their quest was for political glory, not financial gain.

Do go read the rest. It should make you very, very nervous. Our economy is being set up to fail. The crazed spending will have to be followed – soon – by massive taxation or the entire economy will collapse.

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One Response to Downgrading America

  1. ck says:

    We’re beyond the point of diminishing returns as far as taxes go.Any increase in taxes will result in lower revenues.Lowering taxes and relaxing regulation is the only way to increase revenues in this already overtaxed state.

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