Saturday, August 6, 2011

How Washington's politicians downgraded America

The downgrading of America is a humiliation for a nation constantly fretting about its potential decline. It reinforces a very common belief here, that the squabbling politicians in Washington are to blame for many of the country's ills.

It was indeed a major theme of candidate Obama that "business as usual" couldn't continue and, by an effort of will, America had to come together.

The decision by Standard & Poor's to push America into the second division, when it comes to trustworthiness about paying its bills, puts the USA below the UK, Germany, France, Singapore, Finland and 14 other countries.

The reason it gives is what all America has been saying: Washington doesn't work. The S&P report says: "The political brinkmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed."

A clumsy sentence, yet it encapsulates the frustration of many Americans. They don't think too much of the plan they did eventually come up with at the last minute.

"Our opinion is that elected officials remain wary of tackling the structural issues required to effectively address the rising US public debt burden in a manner consistent with a 'AAA' rating and with 'AAA' rated".

They warn America's debt will continue to balloon and they have little hope of the politicians fixing it. (more)