The American Spectato
By Jeffrey Lord on 7.23.11 @ 9:50AM
The credit rating of the United States government — for the first time in American history — has been cut.
Lost in the headlines generated by Obama press conferences, Reuters reported that the credit rating agency Egan-Jones has in fact become the first rating agency to downgrade the U.S. rating. Egan-Jones, says Reuters:
..has cut the United States’ top credit ranking, citing concerns over the country’s high debt load and the difficulty the government faces in significantly reducing spending.
And what else is being reported about Egan-Jones’ reasoning for doing this?
The agency said the action, which cut U.S. sovereign debt to the second-highest rating, was not based on fears over the country not raising its debt ceiling.
Instead, the cut is due the U.S. debt load standing at more than 100 percent of its gross domestic product. This compares with Canada, for example, which has a debt-to-GDP ratio of 35 percent, Egan-Jones said in a report sent on Saturday.
The startling news, dug out by our friend and talk radio host Mark Levin , comes as House Speaker John Boehner walked out of talks to resolve the issue because President Obama “insisted on raising taxes.”
Which is to say, as more credit downgrades loom from the likes of Moody’s and Standard & Poor’s, Obama refuses to yield on the left’s addiction to tax-and-spend, precisely the problem Egan-Jones cites when they note that the U.S. debt load is, in the words of Reuters, “standing at more than 100 percent of its gross domestic product.”
This is serious. It’s no longer about cutting up the government credit cards. It’s about the Left as financial crack addicts. What John Boehner is doing — one hopes — is not negotiating but performing what drug and alcohol counselors refer to as an “intervention.”
And as with a lot of addicts, the Addict-in-Chief is, reports the Washington Post, “visibly angry.”
The Post did not mention the Egan-Jones downgrade.
It did note that Senate Majority Leader Harry Reid said the GOP’s “Cut, Cap and Balance” bill — which would specifically address the concerns of credit rating agencies, was “dead.”
Jeffrey Lord is a former Reagan White House political director and author. He writes from Pennsylvania at email@example.com.