Tea Party representatives claim debt deal responsible for downgrade because it did not cut enough (Part 4)

The Tea Party members in the Republican Party voted against the debt deal and have even claimed that the debt deal did not cut enough out of the budget and that is why the USA got a downgrade in the  credit rating.

Republican presidential candidate and Minnesota Rep. Michele Bachmann slammed President Obama late Friday, blaming his administration for a downgrade of the U.S. AAA credit rating by Standard & Poor’s.

“This president has destroyed the credit rating of the United States through his failed economic policies and his inability to control government spending by raising the debt ceiling,” Ms. Bachmann said. “President Obama is destroying the foundations of the U.S. economy one beam at a time.”

The Minnesota Republican, who continues to gain support in a series of recently released polls, has remained vocal in her opposition of the Obama administration’s economic policies. Earlier in the week Ms. Bachmann expressed opposition to a deal to increase the nation’s debt ceiling, calling on the Republican leadership to allow the debt limit to expire.

The Minnesota Republican made the statement just hours after the Obama administration pushed Standard & Poor’s to reconsider it’s downgrade of the U.S. credit rating.

While Ms. Bachmann placed the blame squarely on the Obama administration, S&P said unceartinity resulting from the recent debate to increase the nation’s debt ceiling contributed to the decision to decrease the U.S. credit rating.

‘We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process,” the credit rating agency said in a statement.

It remains unclear what effect the credit downgrade will have on financial markets. The Dow suffered its worst day since the 2008 financial crisis, losing 513 points on Thursday, a sign that markets may have already priced in a credit downgrade.

With President Obama’s job-approval rating at 48 percent and an all- time high of 82 percent of Americans giving Congress negative marks in a New York Times/CBS News Poll taken this week, the downgrade could place further blame on the president and congressional lawmakers, analysts say.

Cravaack Statement on S & P Credit Rating Downgrade

08/08/11

Washington, D.C.– U.S. Representative Chip Cravaack (MN) issued the following statement in response to loss of the nation’s  AAA credit rating: 

“Standard & Poor’s downgrade of the nation’s AAA credit rating is extremely unfortunate, but not unexpected.  I urge the President and Senate Majority Leader Reid to put forth their plans to achieve long-term fiscal sustainability and confidence in our nation’s credit; the House-passed ‘Cut, Cap, and Balance’ would have prevented a national credit downgrade.  I look forward to working with my colleagues on a responsible path forward that protects Minnesota working families and job creators.”

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