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Officials Tried To Keep S&P Rating ‘Stable’

From an unfazed Washington Post:

Obama administration officials tried to keep S&P rating at ‘stable’

By Zachary A. Goldfarb, Tuesday, April 19, 2011

The Obama administration privately urged Standard & Poor’s in recent weeks not to lower its outlook on the United States — a suggestion the ratings agency ignored Monday, two people familiar with the matter said.

Treasury Department officials had been discussing with S&P whether the ratings agency should change its outlook on the United States to “negative” from “stable,” an indication that the country could lose its crucial AAA rating in coming years over its soaring debt levels.

Treasury officials told S&P analysts that they were underestimating the ability of politicians in Washington to fashion a compromise to curb deficits, a Treasury official said. They argued a change in ratings was not needed at this time because the debt was manageable and the administration had a viable plan in the works, the official said.

It’s a wonder these Treasury officials were struck by lightning. Or, if they thought they were actually telling the truth, maybe they will share this "viable plan" with the American public.

But S&P analysts told Treasury officials on Friday that they were unmoved — and released a report that expressed skepticism that the political parties could come together on how to bring spending in line with revenue

Spokesmen for the Treasury and S&P declined to comment on the record.

What an absolute disgrace. And it is further evidence of how far along we are on the road to becoming a third world nation.

More importantly, if the Obama administration is willing to twist the arms of private companies like Standard & Poor, you can only imagine the pressure they are putting on their own bureaucracies, like the Department of Labor, to report dishonest numbers.

But talk about ‘shaking the confidence in foreign markets.’ How are the financial markets supposed to react when they hear that the government is trying to tweak its own credit rating? How can anyone be sure the US isn’t cooking its own books?

This article was posted by Steve on Thursday, April 21st, 2011. Comments are currently closed.

6 Responses to “Officials Tried To Keep S&P Rating ‘Stable’”

  1. Mithrandir says:

    It’s like Stalin reporting the numbers of steel factories and metric tons produced to keep the public working and focused on something other than the misery.

    Or….this is just Baghdad Bob with dictatorial powers manipulating the economy. Either way, the U.S. Debt clock doesn’t lie.

  2. Rusty Shackleford says:

    Children. We are dealing with children. They didn’t come up with a budget last year and dumped it in the lap of the republican congress.

    A question came to mind though, while pondering this situation. What if the democrats had been re-elected or simply had held congress? What then? When would a budget have been constructed and/or passed? Or, would they have just kicked the can down the road? Methinks that they would have done just that, then simply raised the debt ceiling, then passed a TON of new taxes and increased the levels of existing taxes, then….spent even more, using the raised debt ceiling as a false indicator of “prosperity”. After all, if you are operating well within the debt ceiling, you’re in the black, right? Just like having checks left in the checkbook….it means there must be money in the account.

    This is truly their attitude. Yet, these filthy rich democrats in office, many of whom are millionaires, if they managed their own money (“their own”…didn’t even sound right in my head), they would be broke in a matter of moments.

    So one has to ask, rhetorically, “What is the real purpose? “Why are they spending so irresponsibly?”. The answers are obvious. Crippling, unsustainable debt will bring about financial ruin and thus, a new organization will “have to” emerge. They would spin it as a failed system of capitalism, even though it was they, themselves who ruined it but now claim a new system is needed in order to get away from the old, inefficient methods. Namely a capitalist system and the people’s right to own property.

    Whenever a marxist is elected to office, they are given a special pair of glasses that allows them to find other people’s money and spend it.

  3. Chase says:

    And of course we all know the gov’t has been cooking the books for decades. It is just time that the pot has finally reached the point where it is boiling over now, and threatening to extinquish the flames of a viable economy.

  4. Right of the People says:

    Once again, if a peon like one of us were to participate in this kind of behavior, we would be living in a 10X9 cell with some dude named Bubba but since it’s the guvmint, it’s fine. The big difference between the Mob and the Gubmint is when the Mob has collected their take they let you be.

  5. untrainable says:

    Reality just keeps creeping up on Obie and the gang. They should have sent Eric Holder over to S&P with a couple of carloads of black panthers. THAT’s the way things seem to get done these days. But it is, at least, nice to know that the S&P isn’t bending to the administration’s particular brand of “urging”… at least, not yet.

  6. proreason says:

    I’ve noticed in the last few weeks that more and more pundits are saying that Obamy lied about this or that. It’s almost like it’s no big deal; they just throw it in there. Even women.

    Of course, we do it all the time in the blogs, but when people on Fox News say “he lied about that” kind of like he met with so-and-so, it seems to me that it’s a very favorable leading indicator.

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