S&P Wants More Spending Cuts
The big news isn't that S&P cut the US credit rating to AA+ from AAA. The big news is that further spending cuts - to a total of $4 trillion - are needed to avoid the rating being cut further.
The U.S.’s new double A+ rating “could go down more in a time frame of six months to 24 months,” to double-A, depending on government action to cut the deficit, John Chambers, managing director and chairman of Standard & Poor’s sovereign ratings committee tells FOX Business senior vice president and anchor Neil Cavuto in an interview on FOX News Saturday.
The rating was dropped to double-A+, S&P says, because of its deepening concern that Washington, D.C. cannot get a grip on the nation's finances in the mid – to long-term, as well as fears that the economy could weaken, and that interest rates could spike higher, causing interest costs on the debt to rise. S&P also cited a weakening federal revenue picture as part of its reasons behind its downgrade.
In the above video, watch as the White House offers a slimy response to the downgrade, pretending that it's been working off of the Simpson Bowles commission report (which it ignored) toward cutting the debt.