“It’s like rain on your wedding day or it’s the good advice that you
just didn’t take.” As Alanis Morrisette put it, “Isn’t it ironic,
don’t you think? Who would’ve thought-it figures.”
Last weekend I was driving to beautiful St. Augustine, Florida when I heard the latest economic news. The economic picture presented the last few days has been one befitting Eeyore. The White House response came from Valerie Jarrett who lamented that the poor President has been losing sleep. He may now rest assured that he is not alone. Jarrett stated:
He’s getting absolutely no sleep. He’s working tirelessly, meeting
with his economic team, doing a lot of outreach, exploring all kinds
of possibilities for compromise,
In the midst of the three ring circus that was the Congressional attempt to raise the debt ceiling,revised economic numbers were released. GDP numbers had been released early in the year but were so distorted that the revised numbers just out bear little resemblance.
The economy grew at 1.3% falling short of the predicted rate of 1.8%. More importantly, economic growth during the first quarter of the year was reported inaccurately to be 1.9%. It is beyond ironic that the revised number, just released, is actually only 0.4%, which reveals the miserable truth of a stalled economy.
Meanwhile, as the spectacle of the debt ceiling debate raged, Sen. Marco Rubio desperately tried to communicate the dire need to address the deficit with trillions in spending cuts. He stressed the consistently overlooked fact that ratings agencies like Moody’s and Standard and Poor’s had actually called for at least 4 trillion in cuts. Without serious cuts in spending, the U.S. will likely face a downgrade in its credit rating. The debt ceiling was never the most significant factor.
(Video of Sen. Marco Rubio)
Republicans presented plan after plan to raise the debt ceiling with simultaneous spending cuts. However, these attempts were ridiculed on the Senate floor. In the video clip linked below, Sen. Harry Reid called the legislation “weak and senseless” and an “anathema” to what the country is all about.
(Video clip of Sen. Harry Reid’s irrational tirade)
The debt ceiling has now been raised, but the fallout has been record setting market drops and a domino effect worldwide. At last, news outlets like the Washington Post have reluctantly reported the possibility that, perhaps, restoring fiscal sanity could be a wise idea:
The debt-limit deal struck by Congress last weekend has been criticized by some budget experts as failing to address the nation’s long-term debt problems even as it staved off a federal default. About $1.1 trillion in stock market wealth has evaporated since the agreement was reached.
You think? Isn’t it ironic that after the shock jock mainstream media hype portraying conservatives as “terrorists” or “thugs” holding the raising of the debt ceiling “hostage” in exchange for actual cuts in the deficit, the subject of trillions in real spending cuts is sheepishly floated a day or two after the deal is sealed?
The necessity of cutting the deficit remains crucial. This attempt by Congress to compromise with entrenched liberal Democrats, who continue to call for outrageous increases in government spending, has fallen woefully short in calming the frayed nerves of global investors and ratings agencies.
As the bedraggled President demanded that the debt ceiling be raised, preferably as a clean bill with no strings attached, the investment class and ratings agencies were continuing their call for deep cuts and responsible fiscal policy. President Obama achieved his goal of raising the credit limit on his worn out credit card, but what did Americans really get in return?
Dear President, I am so sorry to hear of the black fly in your
Chardonnay. For many Americans, though, it’s more like a death row
pardon two minutes too late.
(Artistic acknowledgement of Alanis Morissette, Ironic, lyrics)
Today, for the first time in our history, Standard and Poor’s has downgraded the credit rating of the United States from a AAA rating to AA plus. Isn’t it ironic that Treasury Secretary Geitner, along with the Obama administration, likely knew the downgrade was virtually assured as they failed to emphasize the necessity of deep cuts.
The media has facilitated this fraud before the American people with its incessant harping on the simplistic, superficial measure of merely raising the debt ceiling without sufficient effort toward lowering the massive deficit.