Our rating of AAA is as every bit as real and justified as the claim Obama is a leader… Technically correct, but laughable.
We ceased deserving a triple-a rating long ago: LBJ mixed the SS trust fund into the general fund (“unified budget”) so he could finance the Vietnam War and the War on Poverty simultaneously without blowing out the deficit. (Prior to that, there were separate books for the general fund and the trust fund, clearly delineating what money was derived from and reserved for Social Security. After the merger, administrations regularly hid shortfalls in general revenue behind any Social Security surplus.)
Further evidence is provided by the whole “lockbox” charade of the 1990’s which has positioned us in a situation where we supposedly now have $2.5T of SS assets, but can’t pay next month’s benefits without borrowing MORE! We were warned back then! The “lock box” contents (government bonds) is an asset to our retirees, but a liability to our government that cannot be covered …even today …without more borrowing (and 40% of that borrowed from overseas!)
Does anybody honestly think continuing this hoax is the best strategy for the country?
No ….but the majority dishonestly thinks so! As a result, the ‘can’ will likely be kicked ‘down the road’.
Please, Mr. Obama…. as you said, it is time to “eat your peas!”
You’ve been told by virtually everyone, including your own bipartisan debt commission (report issued last December), that Bush’s spending rate was unsustainable and that you have only made it worse. Please, please come forward with a plan that the CBO can analyze and independent economists (such as in the rating agencies) can evaluate.
Ortherwise you are perpetuating the legacy of wishful thinking started with LBJ, bolstered by Gore’s “lockbox”, but continually demonstrated to be dishonest and deceptive. You say you need $2.4T in additional borrowing authority to get through the next election. Your party has insisted that there is $2.5T securely resting in the “lockbox”. Propose, if you could, to borrow that and cut spending over the next year or two to bring the deficits down. You cannot, I know, tap the “lockbox” because it was raided long ago and filled with IOUs. Please recognize this demonstrates more clearly than any abstract argument that our government violated the trust of the American people decades ago and have been living a lie.
Wealth and power can deceive, and sustain a AAA rating far longer than would be expected. But wealth and power can also eventually corrupt.
We need to live within our means and cease the pretense promoted most recently by Nancy Pelosi that every dollar of government spending generates $1.62 (or so) of growth in the GDP, and the pretense that SS requires no change because “there is $2.5T in the lockbox” as repeatedly claimed by Harry Reid and other Democrats.
You claimed you would run a pragmatic, fact-driven administration. Please demonstrate this by admitting and facing reality.