Honesty is the best policy.
Does anyone seriously think we deserve a AAA after hearing from our president that we can’t send out Social Security checks next month without borrowing, in spite of having claimed for years that we had $2.5T in surplus Social Security funds in the “lockbox”?
Reality: we’ve been cooking the books since LBJ mixed SS funds and the general revenues in order to pay for the Vietnam War and the War on Poverty. “Guns and butter” was beyond what we could handle without smoke and mirrors.
Ever since the pols perpetuated the lies because they either feared facing reality or the temptation of all that money “for doing good” was just too much to pass up.
We’ve been warned for years. As Rev. Wright said, “the chickens are coming home to roost!” Be honest. Admit the crime and do the time. The smart money has already discounted the dollar for this. If it wasn’t for the rest of the world being worse off, we’d have been “bankrupt” long ago. Heard of “moral relativism”? We’ve been rated AAA as a result of financial relativism!
Cut, cut, cut spending until we honestly can afford what is left. If a tax cut is an expense, then a spending cut is new revenue! We don’t need more taxes when we cannot honestly handle what we have already.
Start nothing that cannot be closely monitored for efficiency.
Eg: Deception is claiming medicare overhead is less than overhead in insurance companies, when the government demonstrably suffers much greater fraud (and hides the cost of what enforcement is done in the DoJ, FBI and state budgets! ) Government can’t possibly work without accountability, and cannot be afforded without efficiency. If a government agency can’t keep up without being a monopoly, it is not efficient and should be split into competing halves.
There is nothing to fear in the August 2nd deadline except how foolish our government can be. The wise investors word wide already know better than Washington how serious or situation is and still invests in us because there is no better alternative.
Now answer this: which will make our creditors more comfortable, a) we raise the debt ceiling and continue to overspend, b) we face reality and honestly admit we need to cut and cut spending seriously?
You and everyone else knows the honest answer. Let’s not dishonestly kick this can down the road. If we do, things will only be much, much worse in short order.