S&P’s shot across the bow.

Here’s a quiz. What do Bulgaria, the Republic of Iceland, Worldcom, Enron, Venezuela, AIG, Eastern Air Lines and Greece all have in common? The answer? The credit rating agency Standard & Poor’s has, at some time, issued a negative outlook on the debt of each of these entities.

Yesterday, Standard & Poor’s issued a negative outlook on the sovereign debt of the United States. Thus the U.S. joins an ignominious pantheon of bankrupt companies and failed socialist states.

The timing is interesting. It follows a speech by Obama last Wednesday that was startling to many because of the disconnect between the president’s words and the country’s deteriorating fiscal health. Rather than actually confront the problem, Obama reverted to type and again blamed the Bush tax cuts on “the rich.”

Apparently no one has told him that rolling back the Bush tax cuts on those making over $250,000 raises only $80 billion against a deficit of over $1.6 trillion; a mere five percent.

Standard & Poor’s has been criticized for being slow. Their negative outlook on Enron, for example, wasn’t issued until Enron was essentially dead. You have to hope that they’re not similarly behind the curve with respect to the United States.

Print Friendly, PDF & Email

Paul Gleiser

Paul L. Gleiser is president of ATW Media, LLC, licensee of radio stations KTBB 97.5 FM/AM600, 92.1 The TEAM FM in Tyler-Longview, Texas.

You may also like...

11 Responses

  1. katt says:

    YOU are awesome
    my friends and i look forward to hearing your viewpoint and the comments that follow
    keep up the good work
    have a great day
    katt and friends

  2. Linda E. Montrose says:

    It may take the total collapse of the USA for people to finally wake up to the damage obama has done. Some of us saw it coming a LOOONG WAYS back, starting with those so called “stimulus” bills. If obama had just left things alone, like in the past, the economy would have rebounded on it’s own. But we all know the so called “stimulus” deals were not what we were lead to believe. To this day, no one in the obama administration can tell us where the jobs the stimulus was to create, went. They have been jacking with the unemployment figures to down play just how bad it really is. You can play around with the figures all day long, but the reality of the matter is people are OUT OF WORK and have been for quite some time. With food prices rising because of the rising price of gas compounds the matter. Yet the media refuses to lay the blame where it belongs and that is right at the feet of obama. If people had been paying attention, they could have seen what S&P has just now put out there to the public, a long time ago. But it seems that most people stick their heads in the sand, hoping this will all go away, not realizing that when they pull their heads out, they may not recognize their surroundings due to the destruction that went on while they “away” stuck in the sand.

  3. Rick Armstrong says:

    S&P has let us know that the Good Ol’ USA is in deep do-do and sinking fast. Team Obama Po Po’s the warning as it does not fit their agenda of complete Socialism. By following the Cloward & Piven blueprint, they will plunge us into total anarchy and then be there to “save the nation” … with a few minor changes to the little things…like the Constitution, the Judiciary and the Congress. Nothing major, I am sure.

    Wake up America…right now, they are winning…we cannot afford to allow them to destroy America.


  4. Bill Dalton says:

    The problem is not only externally with large debt holders such as China, but now internally as well. Banks will be forced to take into account S&P’s rating. The Fed’s guarentee of any unsecured loan or purchase will be anything but guarenteed.

  5. L Miles says:

    After last week’s debacle to limit Obama’s spending by the Boehner (Republican) – Obama (Socialist) budget compromise, it is time for the so-called Conservative Republicans to either “poop” or “get off the pot”. Last week House Speaker John Boehner claimed that he forced a $38.5 billion budget cut on the remainder of Obama’s budget for fiscal year 2011. It turns out that only $1 billion in cuts will actually be realized. This is after the Republicans promised to reduce the budget by $100 billion as they campaigned for the 2010 elections.

    The next opportunity for the Republicans to prove their honesty and worth to the nation is to refuse Obama’s request to raise the debt past the current limit of $14.294 trillion. Isn’t it clear to anyone with a brain that Obama’s regime has no desire to limit deficit spending and will use every LIE possible to justify adding to the national debt. His recent protestations to the contrary are meaningless. He is determined to reward his benefactors among his favorite Unions, Corporations, and Tax-Exempt Community Organizer Groups that support his Green, Socialist/Marxist, and Social Justice Agenda, by funneling unaccountable billions to them using every government agency at his disposal. The EPA is just one example.

    A very healthy friend of mine has just had his Medicare supplement policy premiums go up by 50% since last year. He can thank Obama Care and the huge change in future costs and uncertainty being forced on the health care industry by the Obama government mandates independent of market forces. In other words, Obama is adding to our individual cost of living through the medical, food, and energy (fuel) price increases well beyond the national debt and future tax increases he is requesting.

    It is time for Obama’s dishonesty as a Marxist to be exposed by the Republicans and STOP his spending spree dead in its tracks. They should announce that the deficit spending will end immediately and NO US Debt Limit increase will be granted. He MUST cut spending to match revenues and not a penny more! Without this “line in the sand” the Republicans will have no credibility left!

  6. Ed Mullis says:

    Democrat, Republican, Obama, Bush, Marxist, Socialist!
    They are all the same, some worse, some better, depending on who you ask.
    But they are all still the same.
    They get elected to a political office, either for the salary, or for the prestige and notariety afforded their position, or both.

    Which political party, or candidate, will hold the political position sought; and voluntarily not receive an annual salary while holding the office they were elected to hold?
    How many elected officials, especially those in the “higher” offices, “are not” independently wealthy?
    Why does “???????” need a salary taken from the pockets of the people who voted for him, as well as those who voted the other way; And, those who didn’t vote at all?
    He/She has millions, “WHY” does he or she need “my” dime to contaminate “their” gold?
    That’s what this country has come to.
    “Rob” from the poor, through any means that has not yet been judicially declared illegal; to line the pockets of the rich.
    The politicians do it.
    Appointed positions do it.
    Corporate CEO’s do it by demanding freaking outrageous salaries.
    Even the stock-holders do it by sitting at their kitchen table eating steak paid for by that extra few bucks they receive as dividends when the price of gas goes up.
    That extra few bucks came out of “my” pocket.
    That extra few bucks may seem insignificant to some, but that few extra bucks can make the difference whether I may be able to pay my electric bill before they do a disconnect.
    I be in trouble.
    That happens.
    Cause then I’d have to bum, beg or borrow $300 before I could have it re-connected.
    Bill Gates!
    Come on Bill!
    You’re sitting on billions, give everybody who has any registered windows O.S. on a computer capable of running on your lastest version of windows a “free” upgrade.
    You’d be rewarding loyal customers who have helped to line your pockets with those billions.
    Help restore a more equitable gap between lowest and highest income brackets.
    Politicians — forego salary
    Corporations — reduce profits
    Outrageously high paid employees — accept salary reductions
    All would help restore the economy as it would allow those who have little to be better able to “possibly” afford some of the things that they can now only wish that they could.
    Like any a “that’s” gonna happen?

  7. C M Solomon says:

    “Democrat, Republican, Obama, Bush, Marxist, Socialist! — But they are all still the same.”
    “Help restore a more equitable gap between lowest and highest income brackets. — it would allow those who have little, to be better able to “possibly” afford some of the things that they can now only wish that they could.”

    Welcome! to a new generation of cyber beggars, proud Marxist followers that believe: “From each according to his ability, to each according to his need.” — Karl Marx (from his publication in 1875).

    The LEFT: Marxism > Obama > Socialism > Democrat > Welfare State > Hates the Constitution > Hates Liberty > Hates Capitalism > Hates Profits > Creates Dependency > Promotes Tyranny (Social Justice) > Promotes Envy, Covetousness, Jealousy, and Class Warfare.

    Fundamentally, the LEFT hates the Declaration of Independence which states: “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness [Property].”

    In other words, our Rights (not needs, wants, or desires) comes from the Creator, not the Government. Overall, the power of Government is subservient to the Rights of the Individual. Your Right to Private Property (your labor, income, home, family, possessions, savings, etc.) is sacred because it comes from your Creator. No other PERSON, CORPORATION, UNION, or Government Agency (by way of a government policy that voters approve or by way of any Presidential edict) can lay claim to your PROPERTY for their own benefit, if the foundation of the Constitution is to be observed. I would recommend reading the Tenth Commandment – “Thou shalt not covet…” Where do you think the Right to Private Property (that you earn) comes from?

    Without the PROFIT motive that is fundamental to Capitalism, how would the mega-watt generator that produces your electricity have been invented? The same question is applicable for the internal combustion engine, jet engine, all modes of mass transportation (boats, planes, trains), refrigeration, light bulbs, power tools, radio, television, computers, software, vaccines, medicine, anesthetics, CAT scans and MRIs, just to name a few.

    The thing I don’t understand is why the Marxist buys the products of the Capitalistic system. Why doesn’t he invent his own alternatives and quit supporting the economic system that he hates?

    Simply stated, the PROFIT motive has spawned a $400 laptop computer today that has the processing power and memory of an equivalent (house sized) computer that cost $40 million dollars, just 40 years ago. The truly rich (that came by their wealth honestly) overcame competition and SOLD to EVERYONE, independent of the customer’s politics, creed, religion, and race, if they could pay for it from their sacred labor (income). This is only one aspect of the American Dream that ANYONE can achieve if only they get rid of their prejudices, hatred, jealousies, covetousness, and laziness.

  8. Ed Mullis says:

    You just don’t understand the concept of “a balanced economy,” within a capitalistic, or any other socialogical, environment.

    A balanced economy is self sustaining within a community, or the community begins to degrade and eventually die.

    Looking at a hypothetical community where you have three primary “classes;” one rich, one middle income, and one lower income.
    Merely for the sake of simplification, we will identify the “rich” as the class who provides the funding, the “middle income” as the class who provides the technological, and the “lower income” as the class who provides the labor.
    If the “rich” class leaves, there is no longer any funding to support the development of new technology.
    If the “middle” class leaves, there is no longer a venue for the rich to invest in new techonolgy.
    If the “lower” class leaves, Well; who’s going to work on the assembly line to build the products developed by the middle class and funded by the rich class?
    If you lose either class, the economy stagnates, and the community dies off, the rich leave for greener pastures, the middle follows the money, the lower; being unable to leave, remains poverty stricken in a ghost town.
    If you don’t maintain a relatively equitable balance between the three primary classes, you end up with the lower merely giving up in frustration, and committing crime to survive, or using drugs to escape the repugnant reality that is their life.

    Now you can call me marxist, socialist, communist or whatever other label you may wish to assign to me.
    But the bottom line is that corporate and political greed within America is “destroying” our economy.
    It is destroying our economy by rendering it virtually impossible for the lower income brackets to do little more than “barely” feed themselves; much less be able to afford things like insurance or buy a vehicle that doesn’t guzzle gas like an alcoholic.
    The cost for a barrell of oil goes up, Corporate America raises the price of gas to maintain their profit margin, then they raise the price even more in order to cover their own transportation expenses.
    Do they increase the wages paid to the lower income brackets to allow “them” the ability to cover their additional expenses?
    The politicians and other government officials enact legislation to increase their own annual salary, or demand an increase in their annual salary in order to cover their increased expenses.
    Do they care how much of their salary increase comes directly out of the pockets of the lower income class?
    Does corporate America or the politicians actually “need” a salary increase?
    Could either afford to reduce their profits or salaries in order to “attempt” to bring stability to the economy?
    Do they “care” what happens to the economy, or to those who’s labor lines their pockets?
    They only care about; Well, I made a million last year, I intend to make 2 this year, and I don’t care “who” might suffer because of my greed.
    Do they “care” that millions of Americans can’t afford the high cost of medical treatment, or to have insurance?
    They only care that they have fat bank accounts to pay the outrageous cost of medical treatment should some emergency arise.

    In case you may be wondering, The “voters” have no control over whether an elected official may increase his own salary at his discretion. Though they can often have some say in how much taxes are going to increase, they have no control over whether their taxes may be increased by an elected official. They have no control over what laws may be enacted by the legislatures, and are not allowed to have any accurate knowledge of where the elected officials may decide to spend tax money.

    Mr./Ms. Solomon
    I don’t care about political parties, I don’t care who the candidate is, or what party affiliation he has. I am 57 years old, I have never voted; and never will.
    I care about whether I am going to be able to earn enough money during the year to keep my utilities on, to keep a phone, to put gas in my vehicle in order to drive to and from a job, and feed myself.
    Oh, And I definitely have to earn enough money to pay my taxes.
    I would like to be able to afford insurance in the event that I should fall off a ladder and I break a leg like I did several years ago.
    I would like to have been able to afford to pay for proper medical treatment for the compression fracture.
    The “sole” reason that I am in the position of having no insurance, or ability to afford medical treatment; is because of the unbalanced economy.
    Being in the service industry, working for myself, there are fewer people who have the financial ability to hire me to do some job for them, or to purchase the materials for the job.
    Less work always equals lower annual income.
    The reason for the unbalanced economy is directly because of the outrageous demand for profit by corporations, and demands for salary increases by people who are sufficiently financially well off that they do not “need” to be concerned about things like utilities, etc., don’t even “need” to be concerned about how much the bill is, just write a check, or auto debit from their bank account.
    I don’t think it can be considered unreasonable to believe that anyone receiving an annual salary in excess of $100,000 should be morally willing to have their salaries and/or profits reduced in order to restore some semblance of economic balance.

  9. C M Solomon says:

    I have a message to Marxists that believe in the concept of “a balanced economy.”

    You are assuming a society of “classes” where the economy is managed by a supreme set of autocrats in order to keep it “balanced.” There are numerous Communist, Marxist, Socialist, and Fascist dictatorial countries where your theory is practiced. History has proved that these systems result in an economic mess that causes everyone but the ruling class to become very poor. Freedom to move between the “classes” is almost impossible.

    The “free market, capitalistic system” in this country is why America runs circles around the vast majority of countries on Earth. We have a “classless society” where everyone has the obligation to take advantage of his freedom to succeed if he has the drive and ingenuity to do so. Nothing is guaranteed. There are numerous poor people that used to be rich, and vice versa. It is our individual responsibility to find prosperity as we each struggle to be successful and overcome the disappointments of life.

    I have a suggestion. Why don’t you charge the “rich” a 25% premium for your services, and give the “poor” a 25% discount for your services? The “middle class” is charged your normal fee. You should advertise this plan and see how much faster your business would grow.

    I think you should practice what you preach!

  10. Joe Slipper says:

    Paul sure has been quiet since we caught Osama under Obama’s watch.

  11. L Miles says:

    Where are the shouts of RAGE that Osama was executed (when unarmed in front of his family) and was NOT arrested and afforded the Miranda warning and the right to trial by a NY federal criminal court by Obama’s chief prosecutor, Eric Holder, (the Attorney General of the United States and the first African American to hold this office), in order to continue to prove that his (Obama’s) Administration is NOT like the barbaric Bush Administration that tortures its victims in order to extract information, and like the fool that he (Bush) is, inflaming the Muslims and Islamic faith worldwide and creating more terrorists in the process. I would have made the previous sentence longer, but the Obama apologists and cheering squad might have missed my point.

Leave a Reply

Your email address will not be published. Required fields are marked *