President Obama and Members of the 112th Congress Credit Rating

On Fri. Aug 7, 2011 the credit rating of the US Government was reduced for the first time in our country’s existence. Standard and Poor decided to reduce the US Government’s credit rating to AA+ from a AAA rating. The recent passage of the ‘’ Budget Control Act of 2011 ‘’ law did not reduce deficit spending a sufficient amount to convince the credit agency to alter their downgrading decision.

President Obama and Congressional leaders of both parties must assume the blame for the nations economic conditions. The President recently said ‘’ everyone must have some skin in the game ‘’ referring to the economy and the private sector. There are 14 million citizens out of work, some collecting unemployment benefits up to 2 years. Unemployment remains at 9.1% after sending $1 trillion on the stimulus package. The national debt limits have been raised 4 times up to $14.7 trillion since Jan. 1, 2009.Since 2009 the deficits have exceeded $1 trillion plus each year since the President and a super majority Democrat Congress ( the House and the Senate ) took control of the US Government.

On 2/13/10, President BarakObama signed Pay-Go Legislation into law. Pay-Go law compels new spending or tax changes to not add to the federal deficit. The President said ''Now, Congress will have to pay for what it spends, just like everybody else ''http://chicagoconsultant.com/page2.php?category=2&post=29

After the Nov 2010 election , the Republicans took a majority control of the House of Representatives in the 112 th Congress. The US Government still remained under the control of the Democrats under the leadership of President Obama and Senator Reid , the majority leader of the Senate. Two thirds of the government was under the control of the Democrat majorities from Jan 2007 to 2011.

The Democrats believe that raising taxes on the so-called rich and cutting loop holes in the tax code will solve the nations problems and generate more revenue to the treasury. The Republicans believe that cutting taxes on everyone and closing tax loop holes on the business sector will increase revenue to the treasury. A solution can be possible only if the parties work together for a common goal as our Constitution requires Congress and the President to do just that. Remember ‘’everyone must have some skin in the game‘’. Sounds like both parties can agree to removing tax loop holes for business and the so-called rich under certain conditions.

The President’s party plan is to remove subsidies to the oil industry because they are making record profits. That may be agreeable to the other party only if all subsidies to all businesses are also cut, only to be fair to all. The Republicans are agreeable to remove tax loop holes only if the tax rates are reduced to offset the cuts in the loop holes. Lower tax rates are beneficial to all parties and have proved that revenue to the treasury increases when business and taxpayers can retain their money before sending the tax money to Washington.

The American people has a dysfunctional government today only due to the ideology of each party not being able to compromise in their beliefs as to what is good for the country.

We the people need to wake up our elected representatives and insist that they start working for the people who elected them rather than the party philosophy. A recent poll taken reported that 80% of the people are for getting rid of all of the members of Congress. The Nov. 2010 election of members to Congress affiliated with the Tea Party have recognized that their recent performance in Congress may be the answer to change the working habits and attitudes in Congress and Washington

So now, how important is it to the US Government to regain the United States of America’s triple AAA credit rating ? The first and immediate challenge to Congress and the President is to finalize the approval of the 2012 budget . The 2012 budget year starts on Oct. 1, 2011 shortly after members of Congress return to Washington. The CBO has already projected that the 2011 budget will again show a $1.5 trillion deficit, don’t sound too good for a credit rating up grade ? Will the nation be in a crisis again because of the credit downgrade ?

President Obama for the past 2.5 years has told the American people that his main goals are to create jobs. Same old talk but still no action on reducing the unemployment numbers. The President deserves an ‘’ f ‘’ for leadership on his performance of the past 2.5 years. The President needs to tell the American people the truth about the economy and on how he plans to work with Congress to arrive at a solution to getting the economy moving in the right direction. The President needs to allow Congress to do their job without interference from the Whitehouse. President Obama’s job is to sign legislation into law and not to interfere with the way our government has been set up in the US Constitution.

When Congress returns to Washington, they have a lot of unfinished work to do. Hopefully Congress will think about adding some ‘’skin in the game‘’. Speaker Boehner and majority leader Senator Reid will pick members to sit on the committee of twelve. Action must be taken on the 2012 budget so as not to receive anymore credit rating downgrades. The House has approved the 2012 budget ( Ryan budget )and the Senate already has voted against approving the House budget . The Senate has the ball, without the Senate’s budget, the 2012 budget will go nowhere. Delays to approving a 2012 budget is not in the best interest of the government at this time. To delay a final approval of the budget may cause other credit rating companies to consider downgrading the US Government‘s credit rating .

The failure of the 112th Congress to remedy the problems that the nation is facing would be catastrophic. Congress must act immediately and decidedly to take the necessary actions to prevent another credit downgrade. In order to satisfy the credit rating agencies , Congress must generate much more in spending cuts and find ways to increase revenue.

During the Deficit Reduction debate, Senator Coburn went to the Senate floor and spoke of the waste presently in the US Government. The Senator with charts in hand pointed out how many government agencies are doing duplicate work of other agencies.

DEFICIT WASTE IN the US GOVERNMENT see video

http://www.youtube.com/watch?v=3tVJ2gqqKWs

The cost savings to the taxpayers in removing the waste could be in the area of $9 trillion. There appears to be some room for Congress to immediately act to cut at least some 50% of the WASTE to reduce the national debt and satisfy all the credit rating agencies. The President and some Members of Congress have called for ‘’ everyone to have some skin in the game ‘’. The opportunity to put the government on the right path to reducing costs requires Congress to act ‘’swiftly and boldly ‘’as the President has said many times in the past. The time to give some government skin is now in the hands of Congress.

It is important that the three partners in the 2nd branch of the US Government work in unison , without delay to provide a solution that will be in the best interest of all citizens and taxpayers. It may be equally important to contact your elected representatives and voice your opinions as to their voting positions. Let’s not forget that ‘’United we stand, divided we fall‘’!

May God Bless America.


Your Author Jon Ewall

http://jon-ewall.hubpages.com/_ph9ejsxunalx/

Jon's website http://www.chicagoconsultant.com/page1.php

http://chicagoconsultant.com

Your author is a online marketing consultant of products offered on the internet. Jon’s website blog contains a variety of interesting subjects and articles that he has written

Comments 17 comments

JerryTillotson profile image

JerryTillotson 5 years ago from Montpelier, VT

Great hub Jon. We are in the worst situation economically since 1929. Let's hope we're not in the process of replacing the Great Depression with a history book changing calamity.


mikeq107 5 years ago

Great Hub:0) Thanks for giving me a better understanding of our present delima!!! voted up and shared with followers.

mike :0)


davidkaluge profile image

davidkaluge 5 years ago

There is need for both parties to work together for a common goal. They should leave party idealogy and work in unison. I trust the econmic problem started before Obama took over power.


LRCBlogger profile image

LRCBlogger 5 years ago

Nice Hub Jon, I find myself in agreement with a lot of what you wrote. I will say that you tend to lay blame on the shoulders of the president and that is not uncommon, he is generally the one who receives the credit or blame. I realize the president took the reigns in the midst of the greatest recession since the great depression. I also realize his spending plans have failed to produce the results he anticipated, thus meaning it is time for a change in direction.

Both parties are bickering and slandering each other when they need to work together on the obvious items. Tom Coburn has done a good job of pointing out some of the wasteful spending, so has Barney Frank & Ron Paul. It is past the time that both sides went to work for the american people.


jon ewall 5 years ago

hubbers

Thank you all for your comments. Today on foxnews.com Chris wallace had 2 guests with an interesting look into the effects of the downgrade. Check it out


JON EWALL 5 years ago

hubbers

The in and outs of the S&P downgrade.

Chris Wallace interviews

Rep. Paul Ryan, Bill Miller Talk Debt, Economy

http://www.foxnews.com/on-air/fox-news-sunday/inde...


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX

Jon - There's plenty of blame to go around. What we just saw was political theater at its worst. I don't know if you picked up on this interview with John Chambers from S&P. If you haven't then check it out:

http://www.redstate.com/erick/2011/08/05/only-the-...

The Frog


JON EWALL profile image

JON EWALL 5 years ago from usa Author

The Frog Prince

''There's plenty of blame to go around'' HOW TRUE

On April 19,2011, on a major news station, Secretary Geithner was asked if the nation was in jeopardy of losing its AAA rating. The Secretary emphatically replied that there is NO WAY that the US credit ratings will be changed.

Today Aug 8, 2011, President Obama had a press conference ( typical no questions asked ) and stated that the US has a AAA rating, ignoring the Standard and Poor’s downgrading of the US credit rating to AA+. The new blame now is on the Tea Party members of Congress for the downgrade, what a joke. The Tea Party members were elected in Nov 2010, and took office in Jan 2011, some 8 months ago.

If Congress would have approved the House bill ''Cut, Cap and Balance '',Standard and Poor’s would not have lower the US credit rating. Senator Reid , most likely as ordered from above, didn't even allow the bill to be debated, amended or voted on in the Senate, that's a fact.

If the Senate neglects to pass a 2012 budget bill, other credit agencies may follow S&P'S DECISION to reduce the US credit ratings .The House passed a 2012 budget in Feb as required by the rules of Congress.

The blame game

#1 President Obama failure to lead the nation out of the depression

#2 Congress failure to act on budget deficits , over spending , ignoring the credit

agencies and the needs of the American people.

# 3 The People for not putting our elected members on notice to get the job done.

President Lincoln once said ‘’ to be silent is to be a coward ‘’.


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX

Jon - The Tea Party was responsible for passing the only bill that would have satisfied the S&P. Cut, Cap & Balance.

Obama can move his lips about AAA all he wants but AA+ it is and that is in danger if they don't Cut, Cap and Balance soon.


JON EWALL profile image

JON EWALL 5 years ago from usa Author

The Frog Prince

You are SOOO RIGHT. CHECK THIS OUT

The Senator Coburn Report July 21, 2011

DEFICIT WASTE IN the US GOVERNMENT see video

Back in the black, the SOLUTION

http://www.youtube.com/watch?v=3tVJ2gqqKWs

On Aug. 7, 2011 S&P ACTED on what Congress already knew!

WE THE PEOPLE have a corrupt SENATE


poetvix profile image

poetvix 5 years ago from Gone from Texas but still in the south. Surrounded by God's country.

I found this to be really well presented, fair, well researched, and backed up, and highly logical. I commend you, sir. I very much appreciate how you do not take sides but stick to the facts proving that both sides have contributed to the problem and both sides will have to grow up and work together for the good of someone other than themselves. Thank you, truly, for this excellent hub.


JON EWALL profile image

JON EWALL 5 years ago from usa Author

HUBBERS

Thank you all for your comments.

The battle for political positions will not change when Congress comes back to Washington in Sept. The President's announcing his plan after labor day will be nothing but political posturing. President Obama will propose another stimulus to boost the economy knowing that the House Republicans will not except. his plan as it is similar to the previous failed $ 1 trillion stimulus package plan. Upon Congress returning, Speaker Boehner should prioritize working on the approval of the 2012 budget, the budget needs to debated before any new legislation is on the Senate floor. The Senate has not yet submitted a 2012 budget.

Congress should be reminded that any increase in spending requires cuts to support the spending as per the PAY-GO LAW signed by President Barack Obama. On 6/29/10 I Wrote About PAY-GO

2/13/10 2:04 PM EST

President Barack Obama is hailing pay-as-you-go budget legislation he

signed Friday night as one in a series of crucial steps needed to snap Washington out of a destructive pattern of overspending.“Now,Congresswill have to pay for what it spends, just like everybody else,” Obama said in his radio and Internet address released Saturday morning. “After a decade of profligacy, the American people are tired of politicians who talk the talk but don’t walk the walk when it comes to fiscal responsibility. It’s easy to get up in front of the cameras and rant against exploding deficits. What’s hard is actually getting deficits under

control. But that’s what we must do.” President Barak Obama promised open and transparent government. Where is the 2011 BUDGET Mr. President. What is the hold up in next years spending budget?

The PAYGO compels new spending or tax changes to not add to the

federal deficit. Not to be confused with pay-as-you-go financing, which

is when a government saves up money to fund a specific project. Under

the PAYGO rules a new proposal must either be "budget neutral" or offset with savings derived from existing funds.[1] The goal of this

is to require those in control of the budget to engage in the diligence of

prioritizing expenses and exercising fiscal restraint. The interest on

the national debt is $1 billion a day and rising. The unfunded liabilities of the country is $104 trillion.The President and the Democrat controlled Congress neglected to follow the law not to long after signing the PAY-GO law, THE DEFICITS CONTINUED TO GROW AT A RECORD PACE.


wba108@yahoo.com profile image

wba108@yahoo.com 5 years ago from upstate, NY

Nice job on this Hub Jon! This is great information and the most balanced look on these issues that I've seen on Hubpages. At very least we must expect our elected officials not to spend money we don't have.

We've got to make real cuts and structural changes in the three main areas of government spending- Medicare, Social security and Defense. Cutting taxes and eliminating harmful regulations is the only way to get this economy going! Voted you up and awesome! Regards and Blessings-WBA


JON EWALL profile image

JON EWALL 5 years ago from usa Author

HUBBERS

AN UPDATE on the President in campaign mode.

Today in North Carolina, the President (highest office in the land ), Barack Obama told the college audience ‘’if you love me ( is he a king or dictator),you got to help me pass this bill’’,’’ it’s about giving the American people a win’’. ‘’we have been in a national crisis for 3 years’’, ‘’we need action now’’.

President Barack Obama taught Constitutional law at Chicago University. There is absolutely no way Congress can pass ANY law until it is written and sponsored. Next, it has to be approved to go to committee after which, upon approval of the Speaker and the Majority Leader in the Senate , Senator Reid, a bill requires their approval to even go to the floor for debate, amend and vote. In order to move to the President’s desk ,both the House and the Senate jointly need to pass the legislation.

The President does what he does best. He is in campaign mode ,’’it’s time for action now’’. His actions today were disingenuous to Congress, the people and was a pitiful example of incompetence, irresponsible and disrespect of the highest office of the country, the Presidency.

The US Constitution is the foundation of our government, somehow the President don’t follow it. It’s about checks and balances.

Fox News is the only ONE that will show past clips of what the President says about a subject, yesterday and up to the present ( IN THE FLESH ). Any of the mainstream media will never show all sides of Barack Obama or any clips top support a discussion. The truth is what you see, the whole truth not a cherry pick.

5. Try C-Span, Fox News Business on sat morning, your local newspaper business sections . Whitehouse. Gov is ALL PROPAGANDA and more!


JON EWALL profile image

JON EWALL 4 years ago from usa Author

HUBBERS

5/03/12 an update, check it out.

Oct 12,2011

Obama Misleads on Opposition to Jobs Bill

http://www.weeklystandard.com/blogs/obama-misleads...

March 25, 2012

Rep. Paul Ryan defends GOP budget plan

http://video.foxnews.com/v/1529380822001/rep-paul-...

The President's Speech Distorts the Truth to Distract From His Failed Record

http://www.facebook.com/notes/paul-ryan/the-presid...

5/02/12

Lies, Damned Lies and Government Jobs Data

The truth, The U.S. economy is creating jobs

http://www.foxbusiness.com/investing/2012/05/02/em...

You can be the Judge.


JON EWALL profile image

JON EWALL 3 years ago from usa Author

HUBBERS

5/11/13 an update, check it out.

President Obama wins re-election, the House and the Senate majorities has not changed. The American people have voted. Will that mean that the Congress and the President's battles will continue, hopefully politics will be put aside and compromise will take a higher goal to turn the economy around and find the jobs that were promised in the 2008 Presidential campaign.7/25/11

Wake up America your Senator needs a wake up CALL.

‘’Cut, Cap and Balance answer to SEQUESTRATION‘

http://hubpages.com/politics/PRESIDENTBARACKOBAMA-...‘ The House passed their 2012 budget in Feb as require by House rules.

Where are the jobs? Check this site. http://majorityleader.gov/JobsTracker/

.Barak Obama Campaign Promises

http://hubpages.com/politics/barakobamacampaignpro...

Obama promised hope and change will be coming to Washington

TRANSPARENCY

2/25/13 Sequester - The Three Things you need to know

http://www.gop.gov/sequester/

President Obama Proposed the Sequester


JON EWALL profile image

JON EWALL 2 years ago from usa Author

Hubbers

BO a lot of talk , people are still waiting for jobs 4/21/14 Carney rejects trade offs for unemployment insurance http://thehill.com/blogs/blog-briefing-room/news/2... Pay Go law http://www.whitehouse.gov/omb/paygo_description

5/13/14 The American people are tired of waiting for this body to act on the jobs bills Senate Democrats continue to blockade http://www.mcconnell.senate.gov/public/index.cfm?p...

12/17/13 A Plan For Jobs & Economic Growth http://www.speaker.gov/jobs

another subject we don't hear much of lately.

6/6/14 CBO Gives Up Trying to Figure Out How Much Obamacare Costs https://www.uschamber.com/blog/cbo-gives-trying-fi...

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