Agency officials say U.S. parties must compromise on deficit reduction
August 7th, 2011
11:02 AM ET
10 years ago

Agency officials say U.S. parties must compromise on deficit reduction

Washington (CNN) - Top Standard & Poor's officials said Sunday that the downgraded credit rating for the United States was both a call for political consensus on significant deficit reduction and a warning of possible further credit problems down the road.

The comments followed Friday's downgrade of the U.S. credit rating to AA+ from the top rank of AAA. It was the first time in history the nation was rated below AAA.


Filed under: Debt • Deficit • Economy
soundoff (18 Responses)
  1. RJWTimes Bradford England

    I think what must now happen is the parties must work together in a bipartisan way for the good of the country, they must find ways of reducing the deficit whilst protecting the poor.

    August 7, 2011 11:35 am at 11:35 am |
  2. Lost in Texas FOREVER

    what the heck is wrong with them..don't they know that this is ALL Obama's fault?? Don't try to confuse the Tea Party and GOP supporters with FACTS please.

    August 7, 2011 11:53 am at 11:53 am |
  3. Rick McDaniel

    Tell it to the Dems......all the welfare party wants to do, is spend, spend, spend.

    August 7, 2011 12:17 pm at 12:17 pm |
  4. A Kickin` Donkey

    Historically, "ratings agencies" have not been brazen enough to be this political. We`d better watch their behavior for a further infiltration of the halls political power by business interests.

    Having said that, S&P is clearly stating that this TeaParty Downgrade was borne not out of economics but rather the willingness to contemplate default – – tlak that came not from President Obama, Harry Reid, Nancy Pelosi, Steny Hoyer or any other Democrat.

    It was Teapublicans like their postergirl, Michele Bachmann, that encouraged default and an incivility in the negotiations. McConnell, Boehner & Cantor also are graduates from this school of thought. For example, while he didn`t advocate for outright default, the Speaker did downplay & dismiss the criticality of the August 2nd DEADLINE. [Don`t believe me, then roll the videotape.] These words by a so-called "leader" only served to embolden the hostage takers in his party. Boehner says the Republicans got 98% of what they wanted. Well, the GOP can also take 98% of the RESPONSIBILITY for this action by S&P.

    See what happens when you worry so much about spiking the football, Neanderthals?

    August 7, 2011 12:33 pm at 12:33 pm |
  5. gail lang

    Why is there no mention of cutting foreign dare we talk about cuts to social security and medicare and not to the rest of the world we support

    August 7, 2011 12:36 pm at 12:36 pm |
  6. Anthony

    Republicans, if you want to use S&P's downgrade of the U.S.'s credit rating to attack Obama, at least read S&P's report. S&P wants the parties (including you, Republicans) to COMPROMISE!!!

    August 7, 2011 12:39 pm at 12:39 pm |
  7. vic , nashville ,tn

    Tea party, Sen. Lindsey Graham and Paul Ryan please show us the balance sheet from 2002 to 2006 then you all have all the rights to blame president and democrats

    We know they don’t have the balance sheet because 2 wars didn’t pay , Bush tax cut didn’t pay, Medicaid didn’t pay

    August 7, 2011 12:45 pm at 12:45 pm |
  8. T'sah from Virginia

    THIS is one of the reasons why NOTHING is going to get done with this committee…
    ["I think people are over-emphasizing what this committee is going to achieve," Ryan said. Democrats are unwilling to make the kinds of reforms needed in entitlement programs such as Medicare and Social Security… We have yet to see any commitment to bring the spending line down," Ryan added.]

    Okay and the Republicans have NO PLAN to put TAXES on the table or even discuss it. I think if the RIGHT end those tax breaks for the RICH, end the subsidies for big oil companies and get rid of the loopholes that allow companies like GE pay NO taxes, I think the Democrats will meet them in the hallway and “shake hands” instead of passing them without speaking………..PERIOD!!! In reality, the Democrats will have no choice!
    Boehner had a LARGER deal in place with President Obama that had “everything” on the table and was looking at over $4 Trillion in deficit cuts, but Boehner allowed the “chosen few” in his party to rule over him – lead by “thorn in the back CAN’Tor’ and the far-RIGHT TP.

    This is only the beginning…………stayed tuned for MORE to come!!!

    August 7, 2011 12:47 pm at 12:47 pm |
  9. FM

    The penalty S & P has used for not compromising is too huge. Where will the poor countries run to when their saviour has been put in the same category like theirs!

    August 7, 2011 12:48 pm at 12:48 pm |
  10. Howard

    It's so obvious ... and, it's been so obvious ... that when you spend much more money than you have, economic crisis is soon to follow. But, Obama and his blindly devoted followers refuse to see this, and once again choose to blame S&P ... The Tea Party ... Bush ... Fox News ... and everybody else who disagrees with their empty suit messiah.

    August 7, 2011 01:05 pm at 1:05 pm |
  11. Tea Party Mike

    I have read many articldes on the S & P down grade and have seen several interviews of representives from S & P about the down grade.
    It is clear they blame the gridlock on both parties, not just one.
    It is also clear they are looking for more spending cuts, especially cuts realized from the biggest drivers of the debt, Social Security and Medicare. And it is clear they would like to see an increase in revenue.
    Democrats have said do not touch Social Security and Medicare and Republicans have said no tax increases.
    Many Republicans are for tax reform and tax reform if done right can increase revenue. Tax reform gets rid of tax breaks and loop holes and lowers tax rates. This braodens the tax base and creates a more fair tax code. A company like GE that made 14 billion in profits but paid zero taxes because of tax loop holes would have to actually pay taxes.
    Many Democrats are on record in favor of tax reform. The devil would be in the details over what tax breaks and loop holes to get rid of and how much to lower the tax rates. But I believe a compromise could be reached.
    If Democrats were to agree to cuts realized by reforming Medicare and Social Security I believe they could use that as a trade off to get a significant revenue increase from tax reform from Republicans. Boehner and Obama at one time had an agreement of 800 billion in revenue increase through tax reform before the deal fell apart.
    The S & P is looking for action that will require compromise on both sides.
    I am hopefull, but I do not plan on holding my breath the Democrats will move on Medicare and Social Security.

    August 7, 2011 01:06 pm at 1:06 pm |
  12. MAC

    Constitutionally a strong defense and strong common monetory system are the repononsibility of the Federal Government, everything else are entitlements!!!!! If you think that spending will be cut with taxes raised, you won't pass a drug test? The democrats showed with putting the spending cuts on the last bill years 7 thru 10 show that they are more serious about being model citizens than cutting spending.

    August 7, 2011 01:19 pm at 1:19 pm |
  13. OutfieldDan

    The Democrats are in a state of denial. Basically, the Tea Party has been proven right. The downgrade is because of the debt. Too bad we didn't reach a compromise that cut deeper, but that was the fault of the Democrats.

    August 7, 2011 02:13 pm at 2:13 pm |
  14. Williew

    Tea Party talk. We hear it a lot. They compare government spending with how an average American family would handle their debt. Live within your means. Good advice if your already there. But their advice doesn't work if the family, (or government) is dealing with heavy debt. Their solution is not to write checks their bank balance can't cover. So our family should do what? Their solution is to simply dismiss certain bills or obligations that are deemed as too big or not worthy of attention. Try throwing some of your bills away in the name of prudent spending. Your financial obligations are there even if you can no longer afford them all. The answer? Listen up Tea Party! First of all , stop charging for unnecessary things but hang on to your credit card for real emergencies. At this point most families will get a second job or the home maker will go to work for a while to meet existing obligations. The solution is the same for governments. Slow down spending and take in more money. You should start taking your own advice.

    August 7, 2011 02:31 pm at 2:31 pm |
  15. bobcat2u

    Nothing better than stating the obvious, huh ? I wonder how they came to the conclusion that the parties need to work together ? Real Einsteins.

    August 7, 2011 02:32 pm at 2:32 pm |
  16. darko

    S&P getting political much?

    The method to which our spending legislation is produced should be of no concern to them. Will they be calling for compromise when the GOP controls Congress and the Presidency in 2012?

    August 7, 2011 02:44 pm at 2:44 pm |
  17. I'm a GOP Hostage and so are you

    Every single person in America will pay more money out of their own pockets because of the Tea Party. AL of us - Dem, Reublican, Indie, Tea Party - we ALL now have to pay a Tea Party Hostage Tax just to live in their skewed version of America.

    August 7, 2011 02:57 pm at 2:57 pm |
  18. fayse

    Every one has an opinion yet no one seems to have a solution. We must all face facts, our economy was already very fraigile, we were begining to see gains in the Stock Market. This latest debt ceiling crisis was the final straw. The President and Speaker Boehner were close to a 4 trillion dollar cut which, included some increase in revenue. The Tea Party hand cuffed Boehner and refused to work with that plan. Boehner presented a bill that he knew was not going to pass, therefore, he did not act in good faith. As a result, the Tea Party helped to push the economy over the cliff. They were pandering to their base. I guess that no one told them that their base is only about 28% of their own Party. As for the nonsense about "Obama's blank check" that is absolute drivel. The Constitution clearly places the responsibility of budgets and spending on Congress. No President, past, present or future has any authority to spend one dime. If, in the event of an emergency, the President can request funding. but, it has to be voted on by both Houses of the Congress. The Congress swore under oath to represent ALL of the people, they are derelict in their duties. And they all need to be replaced. Come next election they need to be sent packing. Out with all incumbents, oh, and don't forget the Governors too. We should be very careful not to replace any one of them with more Tea Party idiots.

    August 7, 2011 03:30 pm at 3:30 pm |