There is a lot of anger at the moment in the US over the embarrassment of the downgrade, as well as shock. I’m most amused by the shock, to tell the truth. S&P didn’t say anything yesterday that was not common knowledge and common sense. If you had to rate a potential investment that had an income of, say, $22,000 a year but had costs of $37,000 per year, a standing debt of $143,000, and contracted future debt that exceeded $1 million, would you give that investment a gold-plated AAA rating and buy their bonds at the lowest interest rate possible, or at all? Of course not, but that’s exactly the fiscal situation of the US, at a 100,000,000:1 scale.
The anger is mainly misdirected. The media wants to blame the Tea Party, but the Tea Party wants to solve the actual problem — overspending and overcommitment to entitlement programs. The Tea Party wants to blame the Obama administration, and it deserves some blame for refusing to address the real structural problems of the US fiscal condition. But that fiscal structure far predates Barack Obama, both as President and as human being, and Congresses and White Houses of both parties have done little to address the real problems in Medicare, Medicaid, and Social Security.
Why? Because as soon as people try to do so, demagogues accuse them of wanting to push Grandma over a cliff. Voters respond by punishing the reformers and rewarding the demagogues. If we collectively want to blame someone, we collectively should be looking in a mirror.
So where do we go from here? I do not know, I'm just a woman trying to be a loving wife, mother, and friend, knowing that I am a daughter of God. We try as a family to be responsible with our finances and to give our first fruits to God. While I do not know the solution (besides more responsibility in our own lives as well as that of our government), I do know that the only true answer is to trust God and follow His ways, He knows what He is about.
Hi Kathryn
ReplyDeleteFound your blog through the Community ... just wanted to stop by and say hi.
God Bless!
Hi Michael! Thanks for stopping by. I look forward to reading more at your blog too. Have a wonderful week!
ReplyDeleteFinancial sites have been been talking about this downgrade for quite a while so I'm not sure why it comes as such a surprise to people. The US keeps digging itself into a bigger and bigger hole.
ReplyDeleteHave you ever looked at the live debt clock? Scary! http://www.usdebtclock.org/
Yes Mary that is true.... I haven't looked at the live debt clock ever.... Not sure I want to, yikes! I hope you have a wonderful week :)
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