Following slight budget cuts and a stalemate on taxes, Standard and Poors has upgraded the outlook for United States debt from negative to stable.
Thank goodness for gridlock.
“The U.S. has a less than one-in-three likelihood of a downgrade in the ‘near term’ with the revision,” reports Bloomberg. “The New York-based company said it sees ‘tentative improvements,’ such as the deal politicians reached to resolve what became known as the fiscal cliff and through spending cuts in the Budget Control Act of 2011.”
Just think what good would happen if the president and Congress actually got together on something?
OK- Strike that.
We already know what would happen: Taxes would go up -as would spending- and America’s credit would be downgraded promptly.
(Dead White Male Photo from: VanishingNewYork)
Thank goodness for scandals.
They’ve been the best things to happen to the U.S. economy since Obama was elected.
Under Reagan we got a sudden jumpstart to the economy through less regulation, more individual choices, fewer top-down mandates. And whether through gridlock or scandal, hopefully we’re seeing some of that in the economy right now, as Washington turns it attention to blood lust and survival and away from bad execution of policies that were never designed to solve problems to begin with.
Let’s juxtapose this new, do-nothing government, which we have been enjoying the last few months, with the all-activist, all-the-time government that we’ve gotten from the Democrats since 2006.
“That's because, barring action by lawmakers, the cap on total defense and domestic ‘discretionary’ spending is set $19 billion lower for fiscal 2014,” reports CNN, “which begins Oct. 1. In other words, the magnitude of the 2013 cuts will be preserved and $19 billion more will need to be cut from the discretionary budget, which funds a vast number of government programs and agencies from national parks to the FBI.”
So let us all pray for congressional inaction.
To make them inert, Washington, DC will have to get busy with things that have nothing to do with passing legislation, appointing trade representatives, developing new urban renewal plans, or recognizing basic shapes and colors.
That’s easy to do.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 11th, 2014 | John Ransom
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 9th, 2014 | John Ransom